This excerpt taken from the RVBD 8-K filed Oct 23, 2007.
Cumulative Customer Count Now Exceeds 3,000
San Francisco, CA, October 23, 2007 Riverbed Technology, Inc. (Nasdaq: RVBD), the technology and market leader in wide-area data services (WDS), today released financial results for the third quarter ended September 30, 2007.
Revenues for the third quarter of 2007 were $63.3 million, which represents an increase of 157% from the third quarter of last year. Riverbed® posted GAAP net income of $2.8 million, or $0.04 per diluted share, compared to a net loss of $3.1 million, or a loss of $0.16 per share, in the third quarter of 2006. Riverbeds third quarter of 2007 GAAP results included $9.7 million of stock-based compensation expenses and stock-based payroll taxes.
Excluding the impact of stock-based compensation and related payroll taxes in all periods, the non-GAAP net income for the third quarter of 2007 was $12.4 million, or $0.17 per diluted share, compared to a non-GAAP net loss of $1.0 million, or $0.02 per share, in the third quarter of 2006.
Strong broad-based demand led to another record quarter with year-over-year revenue growth of 157%, noted Jerry Kennelly, Riverbed president and chief executive officer. Our leadership position in the WDS market is clearly evident in our rapid revenue growth and our high rate of new customer acquisition. Our cumulative customers now total more than 3,000, including over 100 of the Fortune 500. This week, we further added to our competitive differentiation with the announcement of RiOSTM 4.1, which delivers enhanced speed, scalability and security. We are also pleased with the initial reception to our Steelhead Mobile product which we introduced at the end of the third quarter. Riverbed has the most comprehensive WDS solution addressing the needs of mobile workers, remote offices and data centers. Many potential customers have cited Steelhead Mobile as another key differentiator for Riverbed.
GAAP gross margins improved from 69.7% in the June quarter to a record 71.3% in the third quarter. This improvement, combined with our rapid revenue growth, led to record non-GAAP net income despite a higher tax rate and even as we rapidly added personnel and invested in our infrastructure to facilitate anticipated future growth. Over the coming year, we will continue to invest in our technology, sales, marketing and infrastructure to capitalize on what we believe is a tremendous market opportunity, said Randy Gottfried, Riverbed chief financial officer.