The startup filed for an IPO with the SEC after hours last night, one day after Byte and Switch reported it was poised to take the plunge. (See Sources: Riverbed Reaches for IPO. Riverbed is looking to raise $74.75 million in the offering; Sachs & Co., Citigroup, Deutsche Bank Securities, and Thomas Weisel Partners LLC are the underwriters.
Riverbed did not disclose the estimated price of shares, number of shares, nor the target date for the offering but it is not expected to price shares until the second half of the year.
In the filing, the startup revealed it has yet to make a profit. Riverbed lost $17.4 million in 2005, which followed $9.8 million in losses in 2004. Riverbed and its investors apparently were satisfied with its revenue growth last year, however. Revenue jumped from $2.5 million in 2004 to $22.9 million last year. The vendor also reported 68 customers for its Steelhead appliances in 2004 and 501 new customers last year.
According to the filing, Riverbed's revenue for the fourth quarter of 2005 was about $10.1 million, up from $7 million the previous quarter.
Riverbed's revenue is expected to receive a boost from OEM deals with Hewlett-Packard and switch vendor McData. (See McData Hits Remote Control and HP Upgrade Features OEM Crowd.) The filing says it has customers through those partners but has not recognized revenue yet. The HP deal started last June, and McData began its OEM deal with Riverbed in March.
According to Infonetics Research, the fast-growing WAN optimization appliance market increased 49% worldwide in 2005 to $236 million, and unit shipments increased 39%. Infonetics forecasts double-digit annual growth a"
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