|Riverbed Announces Preliminary Second Quarter Fiscal Year 2014 Results, Revising Revenue Guidance Range|
Non-GAAP revenue for Q2’14 is now expected to be in the range of
“Second quarter sales were below our expectations, principally in
Riverbed will host a conference call to discuss second quarter results
in more detail on
Use of Non-GAAP Financial Information
This press release contains statements as to expectations for certain non-GAAP financial measures, including non-GAAP revenue and non-GAAP earnings per share. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP, when available. Our management regularly uses our supplemental non-GAAP financial measures internally to understand and manage our business and forecast future periods; as such, we believe it is useful for investors to understand the effects of these items on our total operating expenses. Our non-GAAP financial measures include adjustments based on the following items, as well as the related income tax effects, adjustments related to our tax valuation allowance and the interim tax cost of the one-time transfer of intellectual property rights between Riverbed legal entities:
Support and services deferred revenue: Business combination accounting
rules require us to account for the fair value of support and service
contracts assumed in connection with our acquisitions. The book value of
the acquisition deferred support and services revenue related to
Stock-based compensation expenses: We have excluded the effect of stock-based compensation and related payroll tax expenses from our non-GAAP operating expenses and net income measures. Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP net income. Amortization of intangible assets is a non-cash expense, and it is not part of our core operations. Investors should note that the use of intangible assets contributed to revenues earned during the periods presented and will contribute to future revenues as well.
Acquisition related expenses: We incur significant expenses in connection with our acquisitions. Acquisition related expenses consist of transaction costs, costs for transitional employees, other acquired employee related retention costs, facilities consolidation and exit costs, integration related professional services, adjustments to the fair value of the acquisition related contingent consideration, the write-down of certain acquired in-progress research and development intangibles, and foreign exchange losses on the acquisition related contingent consideration.
Other expenses are those which we would not otherwise have incurred in the periods presented as a part of our ongoing expenses. In this quarter, Other expenses included:
Operating lease not in service - We entered into an operating lease on a
new corporate headquarters in
Non-routine corporate governance and shareholder matters - Beginning in the fourth quarter of 2013, we began incurring professional service fees related to non-routine corporate governance and shareholder matters. We believe these fees are not representative of the ongoing operating costs of the company.
Forward Looking Statements
This press release contains forward-looking statements, including
statements regarding our ability to grow the business and deliver
targeted earnings performance, our expected revenues and earnings for
the quarter ended
Riverbed at more than
Riverbed. WAN optimization for your network: Application acceleration, WAN bandwidth optimization, and IT consolidation. Riverbed is the IT performance company. WAN optimization solutions from Riverbed liberate businesses from common IT constraints by increasing application performance, enabling consolidation, and providing enterprise-wide network and application visibility – all while eliminating the need to increase bandwidth, storage or servers. Thousands of companies trust Riverbed to deliver greater productivity and cost savings by making their IT infrastructure faster, less expensive and more responsive. Riverbed solutions are also available as managed services through select providers.