This excerpt taken from the RVBD 8-K filed Oct 26, 2006.
Revenues Increase 36% Sequentially and 247% Year-over-Year to $24.6 Million
San Francisco, CA, October 26, 2006 Riverbed Technology, Inc. (Nasdaq: RVBD) today released financial results for the third quarter ended September 30, 2006. Net revenues for the third quarter of 2006 were $24.6 million, which represents a sequential increase of 36% from the immediately preceding quarter and a year-over-year increase of 247% from the third quarter of last year.
The net loss on a GAAP basis for the third quarter of 2006 was $3.1 million, or $0.16 per share, compared to a net loss of $6.1 million in the second quarter of 2006 and a net loss of $3.9 million in the third quarter of 2005. Riverbeds third quarter of 2006 GAAP results included $2.1 million of non-cash stock-based compensation expenses related to employee stock options.
Excluding the impact of stock-based compensation in all periods and assuming preferred shares were converted as of the later of their issuance or the beginning of the respective periods, the non-GAAP net loss for the third quarter of 2006 was $1.0 million, or $0.02 per share, compared to a non-GAAP net loss of $4.6 million in the second quarter of 2006 and a non-GAAP net loss of $3.5 million in the third quarter of 2005.
Riverbeds revenue growth accelerated in the third quarter, indicative of the strong demand for our industry-leading technology and the rapid expansion of our market, commented Jerry Kennelly, chairman and chief executive officer of Riverbed®. During the September quarter, Riverbed added approximately 300 new customers, bringing its cumulative customer total to over 1,300 since it began shipping Steelhead® wide-area data services (WDS) appliances in mid-2004.
Our business model improved substantially in the third quarter as we increased gross margins and decreased operating expenses as a percentage of revenue compared to all prior periods. We also generated positive cash flow from operations in the quarter for the first time in Riverbeds history, added Randy Gottfried, chief financial officer of Riverbed.