Computer networking specialist Riverbed Technology (RVBD +0.00%) was able to connect to stronger growth despite hesitation evident in the government sector, reporting third-quarter results after the markets closed yesterday showing it posted revenues of $261.7 million, a robust 20% gain from the $218.6 million in the same period the previous year.
Adjusted revenues were 21% higher at $265 million, just shy of the $267.3 million Capital IQ consensus estimate. Adjusted net income also increased by 18% to $43.3 million, or $0.26 per share, from Q3 2012's $36.6 million, or $0.03 better than the CapIQ estimates of $0.23 per share.
Riverbed was able to drive profitability higher, despite a slowdown in the "government vertical," by keeping a tight lid on expenses.
The computer networking specialist also noted it drove shareholder value gains in the quarter by buying back $50 million worth of stock, building on its track record of returning a "substantial amount of free cash flow to investors in the form of share repurchases."
