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Riverbed Flows Toward Profitability

WAFS specialist Riverbed checked in with fourth-quarter results after the market closed yesterday, recording its first quarter of profitability and solid revenue growth. (See Riverbed Reports FY06 and Riverbed Comes Out at $9.75.)

Riverbed, which went public last September, also announced plans for a secondary public offering of 5 million shares, although execs refused to discuss this move on a conference call last night. (See Riverbed Plans Second Offering.)

CEO Jerry Kennelly was more forthcoming on the firm's financial performance during its first 100 days as a public company. "The pace of our revenue growth accelerated in the fourth quarter - we continue to see strong growth drivers for the company," he said, adding that Riverbed's customer base rose above 1,600, up from around 1,300 in the previous quarter.

The vendor claimed $33.8 million in fourth-quarter revenues, an increase of 37 percent from the previous quarter and 219 percent from the same period last year.

On a non-GAAP basis, the vendor recorded its first quarter of profitability, reporting income of $2.4 million for the quarter, or 3 cents per share, compared to a net loss of $4.2 million, or 9 cents per share, in the same period last year. Analysts had estimated earnings of 1 cent per share.

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