Exhibit 99.1
| | |
| Contact: | | |
| Randy Gottfried, Chief Financial Officer | | Chris Danne |
| ir@riverbed.com | | chris@blueshirtgroup.com |
| Riverbed Technology, Inc. | | The Blueshirt Group |
| 415-247-6397 | | 415-217-7722 |
Riverbed Technology, Inc. Reports
Fourth Quarter and Full Fiscal Year 2007 Financial Results
| | • | | Quarterly Revenues Increase by 126% Year-Over-Year to $76.3 Million |
| | • | | Annual Revenues Increase 162% to $236.4 Million |
| | • | | Cumulative Customer Count Now Exceeds 3,500 |
San Francisco, CA, February 5, 2008 – Riverbed Technology, Inc. (NASDAQ: RVBD), the technology and market leader in wide-area data services (WDS), today released financial results for the fourth quarter and fiscal year ended December 31, 2007.
Revenues for the fourth quarter of 2007 were $76.3 million, an increase of 126% from the fourth quarter of 2006 and a 21% increase over the third quarter of 2007.
Riverbed® posted GAAP net income of $4.8 million, or $0.07 per share, in the fourth quarter of 2007, compared to a net loss of $2.4 million, or a loss of $0.04 per share, in the fourth quarter of 2006. Riverbed’s fourth quarter of 2007 GAAP results included $9.8 million of stock-based compensation expenses and related payroll taxes. Excluding the impact of stock-based compensation and related payroll taxes in all periods, the non-GAAP net income for the fourth quarter of 2007 was $14.6 million, or $0.20 per share, compared to non-GAAP net income of $2.4 million, or $0.03 per share, in the fourth quarter of 2006.
Revenues for the year ended December 31, 2007 were $236.4 million, a 162% increase from $90.2 million of revenues in the prior year. Riverbed posted its first full year of profitability in 2007. GAAP net income for 2007 was $14.8 million, or $0.20 per share, compared to a GAAP net loss of $15.8 million, or $0.59 per share, in 2006. 2007 GAAP results included $32.6 million of stock-based compensation expenses and related payroll taxes. Non-GAAP net income for 2007 was $47.4 million, or $0.65 per share, which compares to a non-GAAP net loss of $6.6 million, or $0.12 per share for 2006.
“Over the past year, we have continued the rapid expansion of our business, growing revenues by 162%, adding over 1,800 customers and building a business that generated over 18% non-GAAP operating margins in 2007 compared to losses in 2006,” noted Jerry M. Kennelly, Riverbed president and chief executive officer. “Riverbed’s record revenue performance in the fourth quarter and throughout 2007 reflects the explosive growth in demand for WDS solutions and our extremely strong competitive position within this fast growing market. Fourth quarter 2007 sequential revenue growth accelerated from the third quarter to 21% and customer acquisition was also strong. We now have a cumulative customer count of over 3,500 and continue to make inroads with the world’s largest corporations.”
“With the majority of the global workforce working outside of headquarter offices, we believe that wide area data solutions can significantly improve productivity while allowing companies to consolidate expensive equipment and services, saving billions of dollars for companies worldwide. Our competitive leadership in this market remains unchanged and we are leveraging our unique software architecture to enter into attractive new markets,” added Mr. Kennelly.
“GAAP gross margins reached 75% for the first time in the fourth quarter, significantly ahead of plan and reflecting reduced costs and a positive product mix. We have continued to invest in building out our R&D and sales marketing organizations given what we believe continues to be a large and growing market opportunity,” said Randy Gottfried, Riverbed chief financial officer.
2007 Highlights
Riverbed’s focus on delivering industry-leading performance, scalability, and simplicity to distributed organizations of all sizes was reflected in a number of key business initiatives and milestones.
| | • | | Industry Achievement – Riverbed’s Steelhead® Appliance product family continued to be recognized for its excellence by many well-respected trade publications in 2007, includingInfoWorld (Best WAN Accelerator of 2005, 2006, 2007, and 2008)Network World (Clear Choice Award for WAN Acceleration),Infonetics Research(Market Leader in WAN Optimization) andGartner (Market Share Leader, five consecutive quarters). In addition, for the second consecutive year Gartner positioned the company in the Leaders quadrant in the “WAN Optimization Controller Magic Quadrant” published in December 2007 and authored by Andy Rolfe and Joe Skorupa. This report positions vendors in one of four quadrants based on the companies’ vision and ability to execute on that vision. In addition, multiple Riverbed customers were named to the InfoWorld 100 for their implementation of Riverbed’s Steelhead appliances. The InfoWorld 100 honors IT projects that demonstrate the most creative use of cutting edge technologies to further their business goals. |
| | • | | Product Innovation – Riverbed began shipping the next generation of the Riverbed Optimization System (RiOS™), version 4.1, which is enhanced with disaster recovery intelligence and encryption capability for organizations that require high levels of security or face compliance requirements. The company introduced a new Steelhead appliance model 6120 optimized for disaster recovery, introduced optimizations for Oracle11i applications, and a patent-pending new approach to accelerating encrypted web traffic, furthering its leadership in providing customers with the best performance for the applications most important to their businesses. The company also began shipping the Steelhead Mobile laptop client, which delivers LAN-like application performance for the mobile workforce. |
| | • | | Customer Wins – Riverbed added over 1,800 customers in 2007 and by end-of-year had over 3,500 cumulative customers across a wide range of verticals and markets. Announced customers included GeoEngineers, Bank of Korea, Cubist Pharmaceutical Firm, U.S. Defense Contract Management Agency, New Zealand Department of Conservation, Hyundai Hysco, Mitsubishi Motors, and Family Health International. |
| | • | | Global Expansion and Distribution – Riverbed dramatically expanded its global presence in 2007, expanding in nine additional countries. New offices were added in Latin America, Eastern Europe, Scandinavia and a number of countries in Asia. The company also ramped up its distribution capacity by almost doubling its sales and marketing organization in 2007 to meet the growing global demand for its products and building our channel relationships to more than 500 partners. |
Conference Call Information
Riverbed will host a conference call for analysts and investors to discuss its fourth quarter and full fiscal year results today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). A live webcast of the conference call will also be accessible from the “Investor Relations” section of the company’s website atwww.riverbed.com. Following the webcast, an archived version will be available on the website for 30 days. To hear the replay, parties in the United States and Canada should call 800-405-2236 and enter passcode 11107069. International parties can access the replay at 303-590-3000 and should enter passcode 11107069.
About Riverbed
Riverbed Technology is the technology and market leader in wide-area data services (WDS) solutions for companies worldwide. By enabling application performance over the wide area network (WAN) that is orders of magnitude faster than what users experience today, Riverbed is changing the way people work, and enabling a distributed workforce that can collaborate as if they were local. Additional information about Riverbed (Nasdaq: RVBD) is available atwww.riverbed.com.
Forward-Looking Statements
This press release contains forward-looking statements, including statements relating to the expected demand for Riverbed’s products and services, statements relating to the growth prospects of the WDS market, statements relating to Riverbed’s ability to enter new markets, and statements relating to Riverbed’s ability to meet the needs of distributed organizations, grow market share or grow the market as a whole. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include our ability to react to trends and challenges in our business and the markets in which we operate; our ability to anticipate market needs or develop new or enhanced products to meet those needs; the adoption rate of our products; our ability to establish and maintain successful relationships with our distribution partners; our ability to compete in our industry; fluctuations in demand, sales cycles and prices for our products and services; shortages or price fluctuations in our supply chain; our ability to protect our intellectual property rights; general political, economic and market conditions and events; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. More information about these and other risks that may impact Riverbed’s business are set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2007 filed with the SEC on October 25, 2007, as well as subsequent reports filed with the SEC. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. Any future product, feature or related specification that may be referenced in this release are for informational purposes only and are not commitments to deliver any technology or enhancement. Riverbed reserves the right to modify future product plans at any time.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons why management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled “Use of Non-GAAP Financial Information” as well as the related tables that follow it. We anticipate disclosing forward-looking non-GAAP financial information in our conference call to discuss our fourth quarter and fiscal year 2007 results, including an estimate of non-GAAP earnings for the first quarter and fiscal year 2008 that excludes stock-based compensation expenses related to employee stock options, purchases of common stock under our Employee Stock Purchase Plan, and related payroll taxes. We cannot readily estimate these expenses because they depend on such factors as our future stock price for purposes of computing such expenses.
A copy of this press release can be found on the investor relations page of Riverbed’s website atwww.riverbed.com.
Riverbed Technology, Riverbed, Steelhead, RiOS, Interceptor, and the Riverbed logo are trademarks or registered trademarks of Riverbed Technology, Inc. All other trademarks used or mentioned herein belong to their respective owners.
Riverbed Technology, Inc.
GAAP Condensed Consolidated Statements of Operations
In thousands, except per share amounts
| | | | | | | | | | | | | | |
| | | Three months ended
December 31, | | | Twelve months ended
December 31, | |
| | | 2007 | | 2006 | | | 2007 | | 2006 | |
Revenue: | | | | | | | | | | | | | | |
Product | | $ | 61,342 | | $ | 26,798 | | | $ | 189,218 | | $ | 70,967 | |
Support and services | | | 12,688 | | | 4,930 | | | | 38,460 | | | 12,315 | |
Ratable product and related support and services | | | 2,280 | | | 2,097 | | | | 8,728 | | | 6,925 | |
| | | | | | | | | | | | | | |
Total revenue | | | 76,310 | | | 33,825 | | | | 236,406 | | | 90,207 | |
Cost of revenue: | | | | | | | | | | | | | | |
Cost of product | | | 13,467 | | | 8,927 | | | | 49,009 | | | 23,504 | |
Cost of support and services | | | 4,754 | | | 1,897 | | | | 14,451 | | | 4,748 | |
Cost of ratable product and related support and services | | | 651 | | | 456 | | | | 2,464 | | | 1,900 | |
| | | | | | | | | | | | | | |
Total cost of revenue | | | 18,872 | | | 11,280 | | | | 65,924 | | | 30,152 | |
| | | | | | | | | | | | | | |
Gross profit | | | 57,438 | | | 22,545 | | | | 170,482 | | | 60,055 | |
Operating expenses: | | | | | | | | | | | | | | |
Sales and marketing | | | 32,617 | | | 16,312 | | | | 95,652 | | | 48,080 | |
Research and development | | | 12,312 | | | 6,503 | | | | 39,696 | | | 19,215 | |
General and administrative | | | 8,020 | | | 3,279 | | | | 24,834 | | | 9,294 | |
| | | | | | | | | | | | | | |
Total operating expenses | | | 52,949 | | | 26,094 | | | | 160,182 | | | 76,589 | |
| | | | | | | | | | | | | | |
Operating income (loss) | | | 4,489 | | | (3,549 | ) | | | 10,300 | | | (16,534 | ) |
Other income, net | | | 2,705 | | | 1,286 | | | | 9,733 | | | 992 | |
| | | | | | | | | | | | | | |
Income (loss) before provision for income taxes | | | 7,194 | | | (2,263 | ) | | | 20,033 | | | (15,542 | ) |
Provision for income taxes | | | 2,367 | | | 148 | | | | 5,235 | | | 303 | |
| | | | | | | | | | | | | | |
Net income (loss) | | $ | 4,827 | | $ | (2,411 | ) | | $ | 14,798 | | $ | (15,845 | ) |
| | | | | | | | | | | | | | |
Net income (loss) per share, basic | | $ | 0.07 | | $ | (0.04 | ) | | $ | 0.22 | | $ | (0.59 | ) |
Net income (loss) per share, diluted | | $ | 0.07 | | $ | (0.04 | ) | | $ | 0.20 | | $ | (0.59 | ) |
Shares used in computing basic net income (loss) per share | | | 69,887 | | | 63,452 | | | | 68,020 | | | 26,977 | |
Shares used in computing diluted net income (loss) per share | | | 74,176 | | | 63,452 | | | | 73,244 | | | 26,977 | |
Stock-based compensation expense included in above: | | | | | | | | | | | | | | |
Cost of product | | $ | 33 | | $ | — | | | $ | 101 | | $ | — | |
Cost of support and services | | | 778 | | | 322 | | | | 2,576 | | | 520 | |
Sales and marketing | | | 4,419 | | | 2,447 | | | | 15,160 | | | 4,636 | |
Research and development | | | 2,635 | | | 1,363 | | | | 8,593 | | | 2,541 | |
General and administrative | | | 1,757 | | | 654 | | | | 5,371 | | | 1,521 | |
| | | | | | | | | | | | | | |
Total stock-based compensation expense | | $ | 9,622 | | $ | 4,786 | | | $ | 31,801 | | $ | 9,218 | |
| | | | | | | | | | | | | | |
Riverbed Technology, Inc.
GAAP to Non-GAAP Reconciliation
In thousands, except per share amounts
Unaudited
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended
December 31, 2007 | | Twelve months ended
December 31, 2007 |
| | | GAAP | | Adjustments | | | Non-GAAP | | GAAP | | Adjustments | | | Non-GAAP |
Reconciliation of gross profit: | | | | | | | | | | | | | | | | | | | | |
Total revenue | | $ | 76,310 | | $ | — | | | $ | 76,310 | | $ | 236,406 | | $ | — | | | $ | 236,406 |
Total cost of revenue | | | 18,872 | | | (812 | ) | | | 18,060 | | | 65,924 | | | (2,679 | ) | | | 63,245 |
| | | | | | | | | | | | | | | | | | | | |
Gross profit | | $ | 57,438 | | $ | 812 | | | $ | 58,250 | | $ | 170,482 | | $ | 2,679 | | | $ | 173,161 |
| | | | | | | | | | | | | | | | | | | | |
Reconciliation of operating expenses: | | | | | | | | | | | | | | | | | | | | |
Sales and marketing | | $ | 32,617 | | $ | (4,564 | ) | | $ | 28,053 | | $ | 95,652 | | $ | (15,616 | ) | | $ | 80,036 |
Research and development | | | 12,312 | | | (2,670 | ) | | | 9,642 | | | 39,696 | | | (8,814 | ) | | | 30,882 |
General and administrative | | | 8,020 | | | (1,771 | ) | | | 6,249 | | | 24,834 | | | (5,482 | ) | | | 19,352 |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | $ | 52,949 | | $ | (9,005 | ) | | $ | 43,944 | | $ | 160,182 | | $ | (29,912 | ) | | $ | 130,270 |
| | | | | | | | | | | | | | | | | | | | |
Reconciliation of operating income, net income and net income per share: | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 4,489 | | $ | 9,817 | | | $ | 14,306 | | $ | 10,300 | | $ | 32,591 | | | $ | 42,891 |
Income before provision for income taxes | | $ | 7,194 | | $ | 9,817 | | | $ | 17,011 | | $ | 20,033 | | $ | 32,591 | | | $ | 52,624 |
Net income | | $ | 4,827 | | $ | 9,817 | | | $ | 14,644 | | $ | 14,798 | | $ | 32,591 | | | $ | 47,389 |
Net income per share, basic | | $ | 0.07 | | | | | | $ | 0.21 | | $ | 0.22 | | | | | | $ | 0.70 |
Net income per share, diluted | | $ | 0.07 | | | | | | $ | 0.20 | | $ | 0.20 | | | | | | $ | 0.65 |
Shares used in computing basic net income per share | | | 69,887 | | | | | | | 69,887 | | | 68,020 | | | | | | | 68,020 |
Shares used in computing diluted net income per share | | | 74,176 | | | | | | | 74,176 | | | 73,244 | | | | | | | 73,244 |
| | | | | | |
| | | Stock-based
compensation
expense (a) | | Payroll Tax on
Stock Option
Exercises | | | Total | | Stock-based
compensation
expense (a) | | Payroll Tax on
Stock Option
Exercises | | | Total |
Reconciliation of GAAP to Non-GAAP Adjustments: | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | $ | 811 | | $ | 1 | | | $ | 812 | | $ | 2,677 | | $ | 2 | | | $ | 2,679 |
Sales and marketing | | | 4,419 | | | 145 | | | | 4,564 | | | 15,160 | | | 456 | | | $ | 15,616 |
Research and development | | | 2,635 | | | 35 | | | | 2,670 | | | 8,593 | | | 221 | | | $ | 8,814 |
General and administrative | | | 1,757 | | | 14 | | | | 1,771 | | | 5,371 | | | 111 | | | $ | 5,482 |
| | | | | | | | | | | | | | | | | | | | |
| | $ | 9,622 | | $ | 195 | | | $ | 9,817 | | $ | 31,801 | | $ | 790 | | | $ | 32,591 |
| | | | | | | | | | | | | | | | | | | | |
Use of Non-GAAP Financial Information:
To supplement our condensed consolidated financial statements presented on a GAAP basis, Riverbed uses non-GAAP measures of operating results, net income and net income per share, which are adjusted to exclude stock-based compensation expense and payroll tax expense related to stock option exercises, and to include dilutive shares where applicable. We believe these adjustments are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Riverbed’s underlying operating results and trends and our marketplace performance. The non-GAAP results are an indication of our baseline performance that are considered by management for the purpose of making operational decisions. In addition, these non-GAAP results are the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or basic and diluted net income per share prepared in accordance with generally accepted accounting principles in the United States. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and are subject to limitations.
| (a) | Stock-based compensation is a non-cash expense accounted for in accordance with the intrinsic value method under Accounting Principles Board No. 25 through December 31, 2005 and with the fair value recognition provisions of Statement of Financial Accounting Standards No. 123(R) effective January 1, 2006. While a large component of our expense, we believe investors want to exclude the effects of stock-based compensation expense and payroll taxes related to stock option exercises in order to compare our financial performance with that of other companies and between time periods. |
Riverbed Technology, Inc.
GAAP to Non-GAAP Reconciliation
In thousands, except per share amounts
Unaudited
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Three months ended
December 31, 2006 | | Twelve months ended
December 31, 2006 | |
| | | GAAP | | | Adjustments | | | Non-GAAP | | GAAP | | | Adjustments | | | Non-GAAP | |
Reconciliation of gross profit: | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | $ | 33,825 | | | $ | — | | | $ | 33,825 | | $ | 90,207 | | | $ | — | | | $ | 90,207 | |
Total cost of revenue | | | 11,280 | | | | (322 | ) | | | 10,958 | | | 30,152 | | | | (520 | ) | | | 29,632 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Gross profit | | $ | 22,545 | | | $ | 322 | | | $ | 22,867 | | $ | 60,055 | | | $ | 520 | | | $ | 60,575 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Reconciliation of operating expenses: | | | | | | | | | | | | | | | | | | | | | | | |
Sales and marketing | | $ | 16,312 | | | $ | (2,447 | ) | | $ | 13,865 | | $ | 48,080 | | | $ | (4,636 | ) | | $ | 43,444 | |
Research and development | | | 6,503 | | | | (1,363 | ) | | | 5,140 | | | 19,215 | | | | (2,541 | ) | | | 16,674 | |
General and administrative | | | 3,279 | | | | (654 | ) | | | 2,625 | | | 9,294 | | | | (1,521 | ) | | | 7,773 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | $ | 26,094 | | | $ | (4,464 | ) | | $ | 21,630 | | $ | 76,589 | | | $ | (8,698 | ) | | $ | 67,891 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Reconciliation of operating income (loss), net income (loss) and net income (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | $ | (3,549 | ) | | $ | 4,786 | | | $ | 1,237 | | $ | (16,534 | ) | | $ | 9,218 | | | $ | (7,316 | ) |
Net income (loss) | | $ | (2,411 | ) | | $ | 4,786 | | | $ | 2,375 | | $ | (15,845 | ) | | $ | 9,218 | | | $ | (6,627 | ) |
Net income (loss) per share, basic | | $ | (0.04 | ) | | | | | | $ | 0.04 | | $ | (0.59 | ) | | | | | | $ | (0.12 | ) |
Net income (loss) per share, diluted | | $ | (0.04 | ) | | | | | | $ | 0.03 | | $ | (0.59 | ) | | | | | | $ | (0.12 | ) |
Shares used in computing basic net income (loss) per share | | | 63,452 | | | | — | | | | 63,452 | | | 26,977 | | | | 28,264 | (b) | | | 55,241 | |
Shares used in computing diluted net income (loss) per share | | | 63,452 | | | | 8,088 | (a) | | | 71,540 | | | 26,977 | | | | 28,264 | (b) | | | 55,241 | |
| | | | | | |
| | | Stock-based
compensation
expense (c) | | | Payroll Tax on
Stock Option
Exercises (d) | | | Total | | Stock-based
compensation
expense (c) | | | Payroll Tax on
Stock Option
Exercises (d) | | | Total | |
Reconciliation of GAAP to Non-GAAP Adjustments: | |
Cost of revenue | | $ | 322 | | | $ | — | | | $ | 322 | | $ | 520 | | | $ | — | | | $ | 520 | |
Sales and marketing | | | 2,447 | | | | — | | | | 2,447 | | | 4,636 | | | | — | | | | 4,636 | |
Research and development | | | 1,363 | | | | — | | | | 1,363 | | | 2,541 | | | | — | | | | 2,541 | |
General and administrative | | | 654 | | | | — | | | | 654 | | | 1,521 | | | | — | | | | 1,521 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 4,786 | | | $ | — | | | $ | 4,786 | | $ | 9,218 | | | $ | — | | | $ | 9,218 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Represents options to purchase common stock that were excluded from diluted earnings per share on a GAAP basis because we reported a net loss and including such options would have an antidilutive effect. These options are included in non-GAAP diluted shares outstanding because on a non-GAAP basis, we have net income. |
| (b) | Represents common shares from the conversion of convertible preferred shares as if the shares were converted as of the later of their issuance or the beginning of the applicable period. Convertible preferred shares were converted into common shares as of September 20, 2006, the effective date of our IPO. We believe investors want to give effect to the conversion for prior periods in order to compare our financial performance with that of other companies and between time periods. |
| (c) | Stock-based compensation is a non-cash expense accounted for in accordance with the intrinsic value method under Accounting Principles Board No. 25 through December 31, 2005 and with the fair value recognition provisions of Statement of Financial Accounting Standards No. 123(R) effective January 1, 2006. While a large component of our expense, we believe investors want to exclude the effects of stock-based compensation expense and payroll taxes related to stock option exercises in order to compare our financial performance with that of other companies and between time periods. |
| (d) | No payroll tax expense related to employee stock option exercises was incurred during 2006. |
Riverbed Technology, Inc.
Condensed Consolidated Balance Sheets
In thousands
| | | | | | | | |
| | | December 31,
2007 | | | December 31,
2006 | |
| ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 162,979 | | | $ | 105,330 | |
Marketable securities | | | 83,103 | | | | 3,999 | |
Trade receivables, net | | | 50,072 | | | | 18,148 | |
Other receivables | | | 1,273 | | | | 118 | |
Inventory | | | 9,413 | | | | 7,452 | |
Prepaid expenses and other current assets | | | 5,136 | | | | 5,438 | |
| | | | | | | | |
Total current assets | | | 311,976 | | | | 140,485 | |
| | | | | | | | |
Fixed assets, net | | | 18,826 | | | | 7,718 | |
Other assets | | | 6,800 | | | | 2,566 | |
| | | | | | | | |
Total assets | | $ | 337,602 | | | $ | 150,769 | |
| | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable | | $ | 20,325 | | | $ | 11,113 | |
Accrued compensation and related benefits | | | 14,290 | | | | 8,285 | |
Other accrued liabilities | | | 9,381 | | | | 2,931 | |
Deferred revenue | | | 26,845 | | | | 16,837 | |
| | | | | | | | |
Total current liabilities | | | 70,841 | | | | 39,166 | |
| | | | | | | | |
Deferred revenue non-current | | | 6,634 | | | | 2,245 | |
Other long-term liabilities | | | 409 | | | | 378 | |
| | | | | | | | |
Total long-term liabilities | | | 7,043 | | | | 2,623 | |
| | | | | | | | |
Stockholders’ equity: | | | | | | | | |
Common stock and additional paid-in-capital | | | 295,487 | | | | 162,033 | |
Deferred stock-based compensation | | | (3,287 | ) | | | (5,704 | ) |
Accumulated deficit | | | (32,535 | ) | | | (47,333 | ) |
Accumulated other comprehensive income (loss) | | | 53 | | | | (16 | ) |
| | | | | | | | |
Total stockholders’ equity | | | 259,718 | | | | 108,980 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 337,602 | | | $ | 150,769 | |
| | | | | | | | |
Riverbed Technology, Inc.
Condensed Consolidated Statements of Cash Flows
In thousands
| | | | | | | | |
| | | Twelve months ended
December 31, | |
| | | 2007 | | | 2006 | |
Operating activities: | | | | | | | | |
Net income (loss) | | $ | 14,798 | | | $ | (15,845 | ) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 5,052 | | | | 2,037 | |
Stock-based compensation | | | 31,801 | | | | 9,218 | |
Revaluation and amortization of warrants | | | — | | | | 683 | |
Provision of trade receivable allowances | | | 461 | | | | 474 | |
Excess tax benefit from stock options | | | (850 | ) | | | — | |
Changes in operating assets and liabilities | | | | | | | | |
(Increase) in trade receivables | | | (32,726 | ) | | | (13,266 | ) |
(Increase) in inventory | | | (5,160 | ) | | | (5,186 | ) |
(Increase) in prepaid expenses and other assets | | | (1,614 | ) | | | (3,887 | ) |
Increase in accounts payable and other current liabilities | | | 16,893 | | | | 12,362 | |
Increase in income taxes payable | | | 4,597 | | | | 224 | |
Increase in deferred revenue | | | 14,916 | | | | 13,483 | |
| | | | | | | | |
Net cash provided by operating activities | | | 48,168 | | | | 297 | |
Investing activities: | | | | | | | | |
Capital expenditures | | | (9,709 | ) | | | (5,110 | ) |
Purchase of available for sale securities | | | (129,098 | ) | | | (3,999 | ) |
Proceeds from maturities and sales of available for sale securities | | | 49,980 | | | | — | |
Increase in other assets | | | (2,100 | ) | | | (1,400 | ) |
| | | | | | | | |
Net cash used in investing activities | | | (90,927 | ) | | | (10,509 | ) |
Financing activities: | | | | | | | | |
Proceeds from issuance of convertible preferred stock, net of issuance costs | | | — | | | | 19,915 | |
Proceeds from public offerings, net of issuance costs | | | 87,681 | | | | 87,496 | |
Proceeds from issuance of common stock, net of repurchases | | | 11,792 | | | | 179 | |
Payments of debt | | | — | | | | (2,500 | ) |
Excess tax benefit from stock options | | | 850 | | | | — | |
| | | | | | | | |
Net cash provided by financing activities | | | 100,323 | | | | 105,090 | |
Effect of exchange rate changes on cash and cash equivalents | | | 85 | | | | 42 | |
| | | | | | | | |
Net increase in cash and cash equivalents | | | 57,649 | | | | 94,920 | |
Cash and cash equivalents at beginning of period | | | 105,330 | | | | 10,410 | |
| | | | | | | | |
Cash and cash equivalents at end of period | | $ | 162,979 | | | $ | 105,330 | |
| | | | | | | | |
