Needham & Company Maintains a 'Buy' on Riverbed Technology (RVBD); New Product Cycle to Back-End Load CY12

January 27, 2012 9:03 AM EST
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Price: $20.99 --0%

Rating Summary:
    8 Buy, 33 Hold, 0 Sell

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    Up: 24 | Down: 17 | New: 14
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Needham & Company maintains a 'Buy' on Riverbed Technology (NASDAQ: RVBD) price target of $36.00.

Needham analyst says, "Riverbed DecQ results were solid, though upside was modest and likely below investor hopes. We believe the quarter was solid, with +7% q/q growth in deferred revenue, matching last year’s DecQ, and a solid EMEA performance of +17% q/q, following mid-CY11 EMEA management changes. The US was only up +2% q/q and was likely a disappointment, and may have been impacted by the seasonal decline in government from 3Q to 4Q. The most dramatic news of the call was the announcement of a hardware refresh (first since 2008) for the core Steelhead line, which is still 90% of revenues. News of the refresh was delivered to customers and the VARs only in the last 2 weeks, and impact to MarQ sales is unknown; based on CY08 trends and deal delays, RVBD decided to proactively guide below the Street, anticipating a slow 1H12 due to frozen deals as customers wait for the new product."

"Our CY12 goes from $900m and $1.16 down to $869m and $1.01 EPS. Introducing CY13 of $1069m and $1.33 EPS."

For an analyst ratings summary and ratings history on Riverbed Technology click here. For more ratings news on Riverbed Technology click here.

Shares of Riverbed Technology closed at $29.92 yesterday.

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