RVBD » Topics » Concentrations of Risk

This excerpt taken from the RVBD 10-Q filed May 5, 2009.

Concentrations of Risk

Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and trade receivables. Investment policies have been implemented that limit investments to investment grade securities and the average portfolio maturity to less than six months. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers and by the diversification of our customer base. No customer represented more than 10% of our revenue for the three months ended March 31, 2009 and 2008.

We outsource the production of our inventory to third-party manufacturers. We rely on purchase orders or long-term contracts with our contract manufacturers. At March 31, 2009, we had no long-term contractual commitment with any manufacturer; however, we did have a 90 day commitment totaling $7.8 million.

 

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This excerpt taken from the RVBD 10-Q filed Apr 30, 2009.

Concentrations of Risk

Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and trade receivables. Investment policies have been implemented that limit investments to investment grade securities and the average portfolio maturity to less than six months. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers and by the diversification of our customer base. No customer represented more than 10% of our revenue for the three months ended March 31, 2009 and 2008.

We outsource the production of our inventory to third-party manufacturers. We rely on purchase orders or long-term contracts with our contract manufacturers. At March 31, 2009, we had no long-term contractual commitment with any manufacturer; however, we did have a 90 day commitment totaling $7.8 million.

 

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These excerpts taken from the RVBD 10-K filed Feb 23, 2009.

Concentrations of Risk

Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and trade receivables. Investment policies have been implemented that limit investments to investment grade securities and the average portfolio maturity is less than six months. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers and by the diversification of our customer base. No customer represented more than 10% of our revenue for the years ended December 31, 2008, 2007 or 2006.

We outsource the production of our inventory to third-party manufacturers. We rely on purchase orders or long-term contracts with our contract manufacturers. At December 31, 2008, we had no long-term contractual commitment with any manufacturer; however, we did have a 90 day commitment totaling $10.8 million.

Concentrations of Risk

STYLE="margin-top:6px;margin-bottom:0px; text-indent:5%">Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and trade
receivables. Investment policies have been implemented that limit investments to investment grade securities and the average portfolio maturity is less than six months. The risk with respect to trade receivables is mitigated by credit evaluations we
perform on our customers and by the diversification of our customer base. No customer represented more than 10% of our revenue for the years ended December 31, 2008, 2007 or 2006.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:5%">We outsource the production of our inventory to third-party manufacturers. We rely on purchase orders or long-term contracts with our contract manufacturers. At
December 31, 2008, we had no long-term contractual commitment with any manufacturer; however, we did have a 90 day commitment totaling $10.8 million.

SIZE="2">Foreign Currency Translation

While the majority of our revenue contracts are denominated in U.S. dollars, we incur certain
operating expenses in various foreign currencies. The functional currency of our foreign operations is the local country’s currency. Consequently, expenses of operations outside the U.S. are translated into U.S. dollars using average exchange
rates for the period reported while assets and liabilities of operations outside the U.S. are translated into U.S. dollars using end of period exchange rates. Foreign currency translation adjustments not affecting net income are included in
stockholders’ equity

 


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RIVERBED TECHNOLOGY, INC.

FACE="ARIAL" SIZE="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 


as a component of accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. The revaluation effect of foreign currency
fluctuations on intercompany balances is recorded to foreign currency gain (loss) and included in other income (expense) in the accompanying consolidated statements of operations. Foreign currency losses included in other income (expense) for the
years ended December 31, 2008, 2007 and 2006, were $253,000, $349,000 and $219,000, respectively.

This excerpt taken from the RVBD 10-Q filed Jul 29, 2008.

Concentrations of Risk

Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and trade receivables. Investment policies have been implemented that limit investments to investment grade securities and the average portfolio maturity is less than six months. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers and by the diversification of our customer base. No customer represented more than 10% of our revenue for the three and six months ended June 30, 2008 and June 30, 2007.

We outsource the production of our hardware to third-party manufacturing facilities. We rely on purchase orders or long-term contracts with our contract manufacturers. At June 30, 2008, we had no long-term contractual commitment with any manufacturer; however, we did have 90 day purchase commitments totaling $12.9 million.

 

2. NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of vested common shares outstanding during the period. Diluted net income (loss) per common share is computed by giving effect to all potential dilutive common shares.

The following table sets forth the computation of income (loss) per share:

 

     Three months ended
June 30,
   Six months ended
June 30,

(in thousands, except per share data)

   2008     2007    2008     2007

Net income (loss)

   $ (869 )   $ 3,945    $ (231 )   $ 7,203
                             

Weighted average common shares outstanding - basic

     71,143       68,085      70,870       66,561

Dilutive effect of employee stock plans

     —         6,006      —         5,660
                             

Weighted average common shares outstanding - diluted

     71,143       74,091      70,870       72,221
                             

Basic net income (loss) per share

   $ (0.01 )   $ 0.06    $ (0.00 )   $ 0.11
                             

Diluted net income (loss) per share

   $ (0.01 )   $ 0.05    $ (0.00 )   $ 0.10
                             

 

The following weighted average outstanding options and RSUs were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect:

     Three months ended
June 30,
   Six months ended
June 30,

(in thousands)

   2008     2007    2008     2007

Options to purchase common stock and RSUs

     10,881       2,837      10,449       1,910

 

3. CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND RESTRICTED CASH
This excerpt taken from the RVBD 10-Q filed Apr 29, 2008.

Concentrations of Risk

Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and trade receivables. Investment policies have been implemented that limit investments to investment grade securities and the average portfolio maturity of our investments is less than six months. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers and by the diversification of our customer base. No customers represented more than 10% of our revenue for the three months ended March 31, 2008. We derived 15% of our revenue, approximately $6.4 million, from one customer in the three months ended March 31, 2007.

We outsource the production of our hardware to third-party manufacturing facilities. We rely on purchase orders or long-term contracts with our contract manufacturers. At March 31, 2008, we had no long-term contractual commitment with any manufacturer; however, we did have a 90 day commitment totaling $6.7 million.

 

2. NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income by the weighted average number of vested common shares outstanding during the period. Diluted net income per common share is computed by giving effect to all potential dilutive common shares.

The following table sets forth the computation of income per share:

 

     Three months ended
March 31,

(in thousands, except per share data)

   2008    2007

Net income

   $ 638    $ 3,259
             

Weighted average common shares outstanding - basic

     70,597      65,037

Dilutive effect of employee stock plans

     3,362      5,313
             

Weighted average common shares outstanding - diluted

     73,959      70,350
             

Basic net income per share

   $ 0.01    $ 0.05
             

Diluted net income per share

   $ 0.01    $ 0.05
             

 

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The following weighted average outstanding options were excluded from the computation of diluted net income per common share for the periods presented because including them would have had an anti-dilutive effect:

 

     Three months ended
March 31,

(in thousands)

   2008    2007

Options to purchase common stock

   6,652    398

 

3. CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND RESTRICTED CASH
This excerpt taken from the RVBD 10-K filed Feb 15, 2008.

Concentrations of Risk

Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and trade receivables. Investment policies have been implemented that limit investments to investment grade securities. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers and by the diversification of our customer base. No customer represented more than 10% of our revenue for the years ended December 31, 2007, 2006 or 2005.

We outsource the production of our hardware to third-party manufacturing facilities. We rely on purchase orders or long-term contracts with our contract manufacturers. At December 31, 2007, we had no long-term contractual commitment with any manufacturer; however, we did have a 90 day commitment totaling $6.1 million.

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