Feeds

Riverbed dredges up $86m in IPO

Investors rush to ride the latest bandwagon

Top three mobile application threats

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. ®

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.