Riverbed Soars After Reiterating Annual Sales Estimates
July 25 (Bloomberg) -- Riverbed Technology Inc., a maker of computer-networking products, gained the most in almost six years after saying the company remains on track to post annual revenue 15 percent higher than a year earlier.
Riverbed advanced 26 percent to $18.32 at the close in New York, for the biggest jump since September 2006. The San Francisco-based company’s shares have dropped 22 percent this year.
Riverbed, which creates technology to help customers keep their software in far-flung data centers more efficiently, has benefited from the growth of cloud computing. Yesterday, it announced a $75 million deal with Juniper Networks Inc. (JNPR), which will license the company’s products to boost application performance.
Full-year revenue will increase about 15 percent from a year earlier, the company said yesterday. The average analyst estimate was for a jump of about 12 percent from 2011 sales of $726.5 million, according to data compiled by Bloomberg.
“That 15 percent number is achievable, assuming the economy holds out,” Randy Gottfried, the company’s chief financial officer, said on a conference call with analysts yesterday after the company reported second-quarter earnings. “But we’ll see. Again, we’re focused quarter-on-quarter.”
Profit in the second quarter excluding some items totaled 23 cents a share, according to a statement. Analysts projected 21 cents, the average of analysts’ estimates compiled by Bloomberg.
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