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Riverbed announces good forecast, declines Elliott Management's offer

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Staff writer ▼ | January 16, 2014
Riverbed TechnologyRiverbed Technology announced preliminary fourth quarter fiscal year 2013 (Q4 2013) financial results, exceeding previously announced fourth quarter guidance.

Non-GAAP revenue for Q4 2013 is expected to be in the range of $284 million to $285 million, compared to the company's previous guidance of $270 million to $276 million. Q4 2013 non-GAAP net income is expected to be in the range of $0.30 to $0.31 per diluted share, compared to the company's previous guidance of $0.26 to $0.27 per diluted share.

For the first quarter of fiscal 2014, ending March 31, the company expects non-GAAP revenue of $262 million to $268 million and non-GAAP earnings of $0.21 to $0.23 per diluted share.

The company also said it decided not to pursue the unsolicited proposal from Elliott Management Corporation to acquire all of the outstanding shares of Riverbed common stock for $19 per share, as it believes the proposal undervalues the Company and is not in the best interests of shareholders.

"Riverbed has been executing a strategy focused on the creation of sustained growth for our business and increasing value for all of our shareholders," said Jerry M. Kennelly, chairman and CEO, Riverbed. "Earlier today, we announced favorable preliminary fourth quarter 2013 results and our first quarter 2014 view, which are indicative of the strong early traction we have achieved against our strategy."

"While the Board will carefully review any credible offer made to acquire the company, any such offer must deliver value to our shareholders in excess of what we believe will be created as we execute on our growth plans and capitalize on the significant investments we have already made in that regard.

"As customers continue to adopt the full breadth of our Application Performance Platform to achieve the benefits of location-independent computing, we expect to increase our share of the $11 billion application performance infrastructure market."

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