7/13...RBAK Q2 revenue up 340%, Loss narrower than expected
By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 2:20 PM ET Jul 13, 2000 NewsWatch
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SUNNYVALE, Calif. (CBS.MW) -- Shares of Redback Networks rose 6 ercent Thursday after the company reported a narrower-than-expected second-quarter loss, prompted by a 340 percent year-over-year jump in revenue.
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Updated:
7/22/2000 8:40:10 PM ET
Redback Networks (RBAK: news, msgs) reported a second-quarter pro forma loss of $5.7 million, or 5 cents a share, wider than last year’s equivalent loss of $2.6 million, or 6 cents a share.
Analysts surveyed by First Call expected the provider of networking software to post a per-share loss of 11 cents.
Shares of the Sunnyvale, Calif.-based company rose 9 1/2 to 166 in recent trading.
Revenue rose 340 percent to $48.7 million in the latest three months from $11.1 million in the same period a year earlier.
Redback saw strong demand for its existing Subscriber Management Systems (SMSs) and shipped its first production SMS 10000 systems, according to Chief Executive Dennis Barsema.
Additionally, the company’s SmartEdge platform has been “well received” and has multi-million dollar orders from both carriers and service providers, Barsema said.
Following the release of the results, Conrad Leifur, an analyst at U.S. Bancorp Piper Jaffray reiterated a “strong buy” rating on RedBack’s stock and raised his price target to $245 from $205.
“Redback continues to dominate the subscriber management space and we are beginning to see tangible evidence that the company is leveraging this position into a leading position in the metro optical space with the SmartEdge platform,” Leifur said in a research note.
Separately late Wednesday, the company named Vivek Ragavan, its president and chief operating officer, to the additional post of chief executive officer. The company also appointed Barsema to the vice chairman post, effective July 17. |
