April 12, 2011 / 10:46 PM / 9 years ago

Riverbed Technology raises Q1 forecast; shares jump

(Reuters) - Riverbed Technology Inc RVBD.O raised its first-quarter forecast, which came in above market expectations, on strong sales of its network optimization products across geographies.

Shares of the network equipment maker, which closed at $30.92 on Nasdaq on Tuesday, rose 14 percent to $35.10 in trading after the bell.

“The stock is reacting positively, given some of the concerns regarding first-quarter seasonality and worries of slowing sales in Europe,” Pacific Crest analyst Brent Bracelin told Reuters.

On Monday, rival Extreme Networks Inc (EXTR.O) lowered its third-quarter revenue outlook, citing weakness in Europe, Middle East and Africa.

Riverbed, which helps companies to move file and email servers from remote offices to data centers to cut costs, now sees first-quarter adjusted earnings of 19-20 cents a share, above its previous guidance of 18 cents a share.

The upbeat forecast is also in sharp contrast to comments made in February by bigger rival Cisco Systems Inc (CSCO.O), which warned of a weak third quarter due to dwindling public spending and weaker margins from tough competition.

Riverbed expects to post quarterly revenue of $163-$164 million, against the $159-$161 million it had forecasted earlier.

Analysts on average were looking for earnings of 18 cents a share, on revenue $161 million, according to Thomson Reuters I/B/E/S.

Reporting by Kavyanjali Kaushik in Bangalore; Editing by Unnikrishnan Nair

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