This excerpt taken from the RVBD 8-K filed Apr 24, 2007.
Record First Quarter 2007 Financial Results
San Francisco, CA, April 24, 2007 Riverbed Technology, Inc. (Nasdaq: RVBD), the performance leader in wide-area data services (WDS), today released financial results for the first quarter ended March 31, 2007.
Revenues for the first quarter of 2007 were $42.8 million, which represents a sequential increase of 26% from the immediately preceding quarter and a year-over-year increase of 212% from the first quarter of last year. Riverbed® posted its first quarter of positive net income on a GAAP basis with $3.3 million, or $0.05 per diluted share, compared to a net loss of $2.4 million, or $0.04 per share, in the fourth quarter of 2006 and a net loss of $4.3 million, or a loss of $0.36 per share, in the first quarter of 2006. Riverbeds first quarter of 2007 GAAP results included $5.4 million of non-cash stock-based compensation expenses.
Excluding the impact of stock-based compensation in all periods, the non-GAAP net income for the first quarter of 2007 was $8.6 million, or $0.12 per diluted share, compared to a non-GAAP net income of $2.4 million, or $0.03 per diluted share, in the fourth quarter of 2006 and a non-GAAP net loss of $3.4 million, or $0.28 per share, in the first quarter of 2006.
Our record results are a testament to the rapid growth of the wide-area data services (WDS) market and the strength of our industry-leading technology, noted Jerry Kennelly, Riverbed president and chief executive officer. Our latest release of RiOS 4.0 even further differentiated our technology adding support for SSL and enhanced acceleration for web-based business applications. Based on the strength of our technology, we continue to win new customers at an impressive rate and our cumulative customer count now exceeds 2,000.
The first quarter of 2007 marked the first in which Riverbed was profitable on a GAAP basis, said Randy Gottfried, Riverbed chief financial officer. Gross margins were 71% and we generated over $7 million in cash from operations.