* Q2 adj. EPS $0.25 vs est. $0.22
* Q2 rev $126.2 mln vs est. $119.4 mln
* Sees Q3 EPS $0.27 vs est. $0.24
* Shares up 3 pct after market
(Adds outlook, executive comments, share movement)
BANGALORE, July 22 Riverbed Technology Inc
RVBD.O posted better-than-expected second-quarter results
spurred by growth in product revenue, and guided its third
quarter above Street, sending its shares up 3 percent after the
The company, which provides technology that speeds up
applications over networks, projected third-quarter earnings of
27 cents a share, excluding items, on revenue of $132 million
Analysts were looking for earnings of 24 cents per share,
on revenue of $126.39 million, according to Thomson Reuters
The company expects sales to continue to ramp in the second
half of the year, chief executive Jerry Kennelly said in a
conference call with analysts.
"Exiting the first half of 2010, we are poised to exceed
our growth rate achieved in 2009, a period in which our revenue
growth outpaced most technology peers," he added.
The company said it expects gross margins of 76 percent to
78 percent, roughly flat with the second quarter.
After the results, S&P analyst Ari Bensinger upgraded the
stock to "hold", saying that the networking equipment was
experiencing a solid rebound in demand from the enterprise
"While we still see a lagging recovery in Europe, we do not
see weakness pronounced enough to impact strong operating
trends in other geographies," he added.
Bensinger raised his price target on the stock by $10 to
On Wednesday, rival F5 Networks reported a quarterly profit
above Street expectations and projected a strong close to the
For the second quarter, Riverbed reported net income of
$6.6million, or 9 cents a share, compared with a net loss of
$0.3 million, or break even a share, a year earlier.
Excluding items, it earned 25 cents a share.
Revenue for the company, which competes with Cisco Systems
(CSCO.O) and Blue Coat Systems BCSI.O, rose 39 percent to
Product sales rose more than 40 percent, marking its fourth
consecutive quarter of product revenue increase, the company
said in a statement.
Analysts were looking for earnings of 22 cents a share,
excluding items, on revenue of $119.38 million, according to
Thomson Reuters I/B/E/S.
Shares of the San Francisco-based company were trading up
3.4 percent at $32.50 after the bell. They closed at $31.41
Thursday on Nasdaq.
(Reporting by Mansi Dutta in Bangalore; Editing by Vyas