Riverbed Shares Decline After Forecasts Trail Estimates
January 30, 2012, 9:45 AM ESTBy Dina Bass
(Updates with today’s trading in second paragraph.)
Jan. 27 (Bloomberg) -- Riverbed Technology Inc., a maker of computer-networking products, dropped the most in six months after the company’s first-quarter sales and profit forecasts fell short of analysts’ estimates.
Riverbed fell 21 percent to $23.57 at 10:18 a.m. New York time, after earlier dropping 22 percent for the biggest intraday decline since July 20.
Sales will be $183 million to $187 million, the company said on a conference call. That was below the $197.3 million average estimate from analysts in a Bloomberg survey. Profit excluding some items will be 19 cents to 20 cents a share, compared with the average estimate of 25 cents.
For the fourth quarter, profit before certain costs was 25 cents a share on sales of $202.8 million, the San Francisco- based company said in a statement. That exceeded analysts’ average projection for profit of 24 cents and sales of $200.8 million.
--Editors: Jillian Ward, Tom Giles
To contact the reporter on this story: Dina Bass in Seattle at dbass2@bloomberg.net
To contact the editor responsible for this story: Tom Giles at tgiles@bloomberg.net.
