February 3, 2009 / 11:36 PM / 10 years ago

UPDATE 1-Riverbed Technology Q4 profit beats Street; shares rise

* Q4 EPS $0.19 tops market estimate by a cent

* Q4 rev rises 21 pct to $92.2 mln vs est $91.3 mln

* Sees Q1 adjusted EPS $0.09 to $0.10

* Sees Q1 revenue $83 mln to $86 mln

* Shares up 13 percent

BANGALORE, Feb 3 (Reuters) - Riverbed Technology Inc RVBD.O posted fourth-quarter results that edged past Wall Street targets as support and services revenue surged 91 percent, and the wide-area data services provider forecast higher first-quarter revenue, sending its shares up 13 percent.

For the first quarter, the company expects revenue of $83 million to $86 million. [ID:nWNAB7696]

“Outlook was little bit more optimistic than some people were expecting,” said Signal Hill’s Erik Suppiger, who was expecting first-quarter revenue of $82 million.

Riverbed has been beefing up its presence in WAN optimization — a technology that speeds up applications over networks — as it takes on rivals like Cisco Systems (CSCO.O) and Blue Coat Systems BCSI.O.

“WAN optimization is probably performing better than other equipment markets because it has an attractive return on investment dynamics,” Suppiger said.

For the fourth quarter, net income was $23.3 million, or 33 cents a share, compared with $4.8 million, or 7 cents a share, a year ago. [ID:nWNAB7635]

Support and services revenue stood at $24.9 million.

First-quarter revenue outlook includes a contribution of about $1 million from Riverbed’s recently acquired Mazu Networks, a company executive said in a conference call.

Shares of the San Francisco-based company were up at $11.06 in trading after the bell. They closed at $9.76 Tuesday on Nasdaq. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Deepak Kannan)

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