Riverbed Grows Revenues and Acquisitions
WAN optimization vendor acquires two companies and announces record results.
WAN optimization vendor Riverbed isn't just optimizing WAN traffic, they're also optimizing their financial results and their own operations.
Riverbed (NASDAQ:RVBD) announced second quarter fiscal 2011 earnings late Tuesday. Revenues came in at $170.3 million up by 35 percent on a year-over-year basis. Net Income was reported at $11.3 million or $0.07 per share up from only $6.6 million or $0.04 per share in the second quarter of 2010.
One of the ways that Riverbed intends to further grow its business in the coming months is by way of acquisitions. Riverbed announced yesterday the acquisitions of technology vendors Zeus Technology and Aptimize providing new content optimization and application delivery controller capabilities.
Aptimize is a privately held Web content optimization company. Their key product is the Aptimize Website Accelerator which optimizes the content of web application so that can be delivered faster. The market for web content optimization is a growing one, with vendor slike Google providing free tools like mod_pagespeed which are intended to help optimize web pages. Privately held vendor Strangeloop is also active in the space with their own site optimizer.
"Aptimize and Riverbed bring together the two powerful technologies for accelerating applications inside and outside the firewall," said Ed Robinson, CEO of Aptimize in a statement.
Robinson will now lead the new Web Content Optimization product group within Riverbed.
In addition to the Aptimize deal, Riverbed yesterday also announced the acquisition of Zeus Technology. Zeus develops a virtual application delivery controller (vADC) technology that is seen to be complementary to Riverbed's core WAN acceleration efforts.
Riverbed is paying up to $140 million for Zeus, with $110 million in cash and an additional $30 million based on the achievement of certain sales objectives.
"Riverbed is a strong technology player with a proven solution for global enterprises,” said Jim Darragh, CEO of Zeus Technology said in a statement. "There is great synergy between our technologies, employees and corporate strategies, and we share Riverbed’s vision of delivering performance solutions for all applications."
Riverbed is no stranger to growing by acquisitions, in 2010 the company acquire network analysis vendor CACE. The former CACE technologies have since been integrated into Riverbed's product lineup to deliver a more comprehensive application awareness and acceleration solution set.