Riverbed Technology, Inc. Announces Preliminary Results, Board To Undertake 'Comprehensive' Review Of Strategic Alternatives

Riverbed Technology (NASDAQ: RVBD) announced on Thursday morning preliminary financial results for the third quarter.

Riverbed expects its revenue to be $276 million to $277 million in the quarter, falling short of the company's prior guidance of $285 million to $295. The company blamed lower than expected growth in its WAN Optimization and virtual ADC businesses for the revenue shortfall.

Riverbed lowered its non-GAAP earnings per share guidance for the quarter to $0.30 to $0.31. Previously, the company estimated it would earn $0.30 to $0.32 per share.

Riverbed announced a restructuring plan to eliminate $20 million to $25 million in annual expenses which should improve operating margins by one percent to two percent.

“In light of current business conditions, we are taking decisive steps to improve our cost structure in order to drive enhanced operating performance,” Jerry M. Kennelly, Riverbed's CEO said in a statement. “We believe these actions enable us to deliver increased value to our shareholders while continuing to deliver the products and support expected by our customers.”

In addition, Riverbed's Board of Directors announced it will undertake a “comprehensive review” of strategic and financial alternatives that will create additional shareholder value. The company did not offer any further specifics in its statement.

Riverbed will report its third quarter results on October 23, after market close.

Shares of Riverbed were trading higher by around 3 percent in the pre-market session.