Feeds

Riverbed dredges up $86m in IPO

Investors rush to ride the latest bandwagon

Top 5 reasons to deploy VMware with Tegile

Riverbed Technology has become the first storage company to go public in around two years - it's also one of the first WAN acceleration start-ups to go public.

Riverbed, whose Steelhead boxes act as local file caches and can also speed up WAN connections between offices, opened on Nasdaq yesterday at $9.75 per share. The price rose to $15.60 in later trading.

The IPO raised some $86m for the four-year-old company, which has been spending hard in recent quarters and lost $10m in the first six months of 2006, according to its IPO filing with the US SEC.

Rivals had accused Riverbed of spending too much on sales and marketing and not enough on R&D, but the company said it was strengthening its management to support its strong growth - it has grown at least 30 per cent in every quarter since introducing its first Steelheads in 2004.

In its prospectus, Riverbed said it would use the money raised to grow the company, develop new products, and possibly acquire other companies. It also said it has an accumulated deficit of $41.8m and expects to continue making losses - something which doesn't seem to have deterred investors, desperate to jump onto the latest techno bandwagon.

Several other WAN acceleration start-ups have already been bought up, as Orbital Data was recently by Citrix, but the success of the Riverbed IPO could bode well for those still in private hands, such as Availl, Certeon, Expand Networks, Signiant and Silver Peak Systems. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.