Feeds

Riverbed dredges up $86m in IPO

Investors rush to ride the latest bandwagon

Secure remote control for conventional and virtual desktops

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Linux? Bah! Red Hat has its eye on the CLOUD – and it wants to own it
CEO says it will be 'undisputed leader' in enterprise cloud tech
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Hey, what's a STORAGE company doing working on Internet-of-Cars?
Boo - it's not a terabyte car, it's just predictive maintenance and that
Troll hunter Rackspace turns Rotatable's bizarro patent to stone
News of the Weird: Screen-rotating technology declared unpatentable
prev story

Whitepapers

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.