Riverbed Technology, Inc. (NASDAQ: RVBD) was battered and bruised after earnings. The company’s earnings were one thing, but guidance was another. The stock is up higher by 4% on Wednesday after the company launched its new Granite product family and introduced the new architectural approach to achieve complete IT consolidation and also showed its new Steelhead product family upgrade.
Product launches rarely matter. The difference is that some feel that Riverbed has been the victim of technology and IT spending dollars being on hold for the new launch. Why buy an old system that is about to be upgraded? This happened with the iPhone too, but Riverbed is an enterprise example of the issue.
Company executives of Riverbed said that the product launch had stunted demand and the outlook for the near future. The new product is said to potentially reinvigorate growth after two big disappointments in the last year.
We have no analyst upgrades to speak of yet, but this has the look and feel of a situation where some might be expected as long as the economy doesn’t soften much from here.
Shares just closed up 3.8% at $24.84 and the 52-week range is $18.33 to $44.70.
JON C. OGG
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