As Riverbed Technology (RVBD) cratered to a new 52 week low on Wednesday, analysts were battling over the future of the company's main market. Several analysts, including Jefferies, see the main WAN Optimization market of Riverbed mostly tapped out, while Needham sees 20% growth in the next 3-5 years.
Why such a divergence in opinion? It all stems from whether the recent product transition is seen as a move leading to favorable dynamic in the second half of 2012 or an excuse for weak results. See previous article on the Q112 results, conference call highlights, and new products launched.
To recap, Riverbed is a leading networking equipment provider that recently launched a host of new products. Management categorically denied the mature market theory suggesting that the market could be 10x the size of all the products previously sold. It also denied any loss of market share as the 3rd vendor has recently pulled back from the market and Cisco Systems (CSCO) appears less focused on this market segment.
Read the full article at Seeking Alpha.
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