Riverbed Swings to 3Q Profit

Net income for the period ended Sept. 30 was $2.8 million, or 4 cents per diluted share, compared to a net loss of $3.1 million, or 16 cents per share, in the third quarter of 2006. The company's 2007 third-quarter earnings were hurt by $9.7 million of stock-based compensation expenses and stock-based payroll taxes.

Excluding those charges, earnings would have been $12.4 million, or 17 cents per diluted share, compared to a net loss of $1 million, or 2 cents per share, in the third quarter of 2006.

Analysts polled by Thomson Financial expected earnings of 17 cents per share for the quarter

Revenue grew 157 percent to $50.8 million for the quarter. Analysts expected revenue of $61.4 million.

Shares of Riverbed Technology Inc. fell $8.21, or 17 percent, Tuesday to $39.75 in after hours trading. The stock rose 13 cents to close at $47.96 in regular trading.