http://www.morningstar.com/earnings/44434494-riverbed-technology-inc-rvbd-q3-2012.aspx

Riverbed Technology Inc RVBD
Q3 2012 Earnings Call Transcript

Transcript Call Date 10/18/2012

Operator: Good afternoon. My name is Jamaria and I'll be your conference operator today. At this time, I would like to welcome everyone to the Riverbed's Third Quarter 2012 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

I'd now turn the call over to Ms. Renee Lyall, Director of Investor Relations. Ma'am, you may begin.

Renee Lyall - IR: Thank you, Jamaria. Welcome to our conference call for the third quarter of 2012. The speakers today are Jerry Kennelly, President and CEO; Randy Gottfried, Chief Financial Officer; and Eric Wolford, EVP and General Manager of Products.

A press release detailing our third quarter results was distributed today at approximately 1.05 pm Pacific Time over Business Wire. The press release is available on our website at riverbed.com. This conference call is being webcast live at riverbed.com/investors and will be archived on our website for the next 12 months on the quarterly earnings and events pages.

Our discussion today will include forward-looking statements, including statements regarding our products, partners, markets, performance, strategies and financial outlook. Forward-looking statements are only predictions and involve risks and uncertainties that may cause our actual results to differ materially from those expressed or implied by these statements.

Factors that may affect our results are summarized in our quarterly release and described in detail in our SEC filings. Forward-looking statements are made as of today's date only and Riverbed disclaims any obligation to update any forward-looking statements. Unless otherwise stated, financial information reviewed on today's conference call is presented on a non-GAAP basis. Historical non-GAAP items are described and reconciled to GAAP results in today's press release and in a supplemental reconciliation available on the Investor Relations' portion of our website. Any future products, feature or related specification that may be referenced during today's call are for informational purposes only and are not commitments to deliver any technology or enhancements. Riverbed reserves the right to modify or cancel future product plans at any time.

I'd now like to turn the call over to Riverbed's, President and CEO, Jerry Kennelly.

Jerry M. Kennelly - Chairman and CEO: Thank you, Renee and good afternoon. We are pleased to report record revenue of $219 million, up 10% sequentially and 15% year-over-year. Sales to enterprise that is non-government customers grew a strong 8% sequentially and 21% year-over-year. Our operating margin increased more than 400 basis points sequentially to 29% and we achieved record net income of $46 million, an increase of 23% compared to the second quarter of 2012.

Across large enterprise, government, and mid-size businesses, we are seeing a move to Virtual Data Centers, hybrid cloud computing and ultimately the software designed data center. This evolution is enabled by technology innovation and Riverbed is one of the leaders, who can deliver on this vision of a data center without walls.

Read our Earnings Call Transcript disclaimer.
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