IT solutions provider Riverbed Technology, Inc. (RVBD) reported Thursday a profit for the first quarter that decreased from a year ago, due mainly to higher expenses. However, adjusted earnings per share remained flat with last year and met analysts' expectations as revenues increased, but missed their estimates. Following the announcement, Riverbed shares plunged more than 17 percent in after-hours trade.
"In a seasonally difficult quarter, we completed a major product cycle and achieved results within our guidance range," President and CEO Jerry Kennelly said in a statement.
The San Francisco, California-based company reported net income of $6.95 million or $0.04 per share for the first quarter, lower than $13.04 million or $0.08 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $33.45 million or $0.20 per share, compared to $33.89 million or $0.20 per share in the year-ago quarter.
On average, 35 analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share for the first quarter. Analysts' estimates typically exclude special items.
Adjustments for the quarter primarily include items such as stock-based compensation, amortization on intangibles, acquisition-related costs, and income tax adjustments.
Riverbed's revenues were up 12 percent to $182.41 million from $163.56 million last year, and adjusted revenues for the quarter grew 12 percent to $183.24 million from $163.56 million in the same quarter last year, but missed thirty-five Wall Street analysts' consensus estimate of $186.13 million.
"Looking ahead, we expect our new Steelhead, Granite, and Cascade products, along with Stingray and Whitewater, to form the basis for Riverbed's next leg of growth as we continue to execute on our vision to deliver a complete performance platform. Our competitive position is strong, our addressable market is growing, and we are optimistic about the opportunity before us," Kennelly added.
RVBD closed Thursday's regular trading session at $27.86, up $1.05 or 3.92% on a volume of 8.62 million shares. However, the stock plunged $4.86 or 17.44% in after-hours trading.
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