Shareholder Elliott Management Said Riverbed “Undervalued”

Riverbed Technology, Inc. issued the following statement in response to Elliott Management Corp.‘s 13D filing with the SEC:

“Riverbed is focused on creating value for all of our shareholders, and maintains an open dialogue with our shareholders, including Elliott.

“Riverbed is pursuing a considered strategy for growth by establishing itself as the leading multi-product platform delivering a complete solution for application and network performance across platforms, locations and devices. Last week we reported, on a non-GAAP basis, third quarter results reflecting 21% year-over-year revenue growth, a nearly 200 basis point sequential improvement in operating margins, and an 18% sequential increase in net income. These results demonstrate strong execution and solid expense management in a mixed economic and weak federal spending environment. We have a strong track record of returning capital to shareholders, including our recent announcement of a $75 million accelerated share repurchase as a part of our current $500 million share repurchase program. Over the last eight quarters, Riverbed has returned approximately 70% of free cash flow to investors in the form of share repurchases. We look forward to meeting with investors and further discussing our strategy at our upcoming analyst day on November 18.”

Read also this article from Reuters, clicking on:
Hedge fund Elliott takes stake in “undervalued” Riverbed
Affiliates of activist hedge fund Elliott Management Corp disclosed a stake of about 9% in Riverbed Technology Inc, a network equipment maker it said was “significantly undervalued“.