3 Min Read
* Expects adj rev $$264-$265 mln vs prior view $274-$280 mln
* Expects adj profit at low end of its 26-28 cents/shr view
* Shares fall as much as 7.3 pct
* Elliott Management reiterates offer (Adds Elliott Management offer, background)
By Lehar Maan and Soham Chatterjee
July 14 (Reuters) - Network equipment maker Riverbed Technology Inc warned its second-quarter adjusted revenue was lower than its forecast, because of delays in closing some large North American deals.
Riverbed's shares fell as much as 7.3 percent in early trading.
"This was a reality check quarter for Riverbed as the company faces a myriad of company-specific and secular challenges in the field," FBR Capital Markets analyst Daniel Ives said in an email.
Hedge fund Elliott Management on Monday reaffirmed its offer to buy Riverbed for about $3.36 billion, after being rebuffed twice.
Analysts at Piper Jaffray said in a note that Riverbed is facing lower demand for its wide area network (WAN) optimization products.
Riverbed's WAN optimization products help increase the speed of software shared over wide area networks and reduce network traffic.
The company has been struggling with the integration of Opnet, a maker of software to manage traffic on networks that it acquired in 2012. Through the acquisition, Riverbed aimed to counter a slowdown in its main WAN optimization business.
Elliott, which raised its initial bid by $2 to $21 per share in February, reiterated that Riverbed's board should explore strategic alternatives.
"All Riverbed stakeholders will end up paying for this reckless gamble, in which the board clearly put the interests of a deeply entrenched management team ahead of shareholders," Elliott said.
Riverbed on Monday estimated adjusted revenue of $264-$265 million for the quarter ended June, below its forecast of $274-$280 million.
Analysts were expecting revenue of $277.4 million, according to Thomson Reuters I/B/E/S.
The company estimated adjusted profit at the low end of its forecast of 26-28 cents per share. Analyst on average were expecting 27 cents a share.
Riverbed will report second-quarter results on July 24.
The company's shares were down 5.5 percent at $19.23 on the Nasdaq in late morning trading.
FBN Securities cut its price target on the stock to $20 from $21. The brokerage has a "sector perform" rating. (Reporting By Lehar Maan and Soham Chatterjee in Bangalore; Editing by Maju Samuel)