SAN FRANCISCO (AP) -- Riverbed Technology Inc.'s stock plunged in aftermarket trading Tuesday after the maker of computer networking equipment released a second-quarter report and forecast indicating the company is being hurt reduced U.S. government spending on its products.
The company swung to a loss during the three months ended June 30, largely because of accounting charges related to past acquisitions.
Investors appeared to be more concerned about Riverbed's revenue, which didn't grow by as much as analysts had projected in the recent quarter and probably will disappoint again current one, according to the company's management.
Riverbed's stock shed $2.53, or 14.4 percent, to $15 in extended trading. The shares closed the regular session at $17.53, up from a 52-week low in April of $13.83, but still down about 11 percent since the start of the year.
The San Francisco company posted a loss of $16.5 million, or 10 cents per share, in the most recent quarter. That contrasted with net income of $18.1 million, or 11 cents per share, at the same time last year.
If not for the acquisition charges and other items unrelated to its ongoing business, Riverbed said it would have earned 22 cents per share. That figure matched the average estimate among analysts surveyed by FactSet.
Riverbed's revenue rose 26 percent from last year to $250 million — about $8 million below analysts' predictions.
In a Tuesday conference call, Riverbed executives traced the revenue letdown to the company's difficulty closing deals with federal government agencies. They indicated some of those troubles were tied to automatic spending cuts triggered in March after Congress and the Obama administration couldn't agree on ways to pare the budget deficit.
Riverbed expects to post adjusted earnings of 23 cents or 24 cents per share on revenue of $265 million to $270 million during the quarter ending in September. Analysts, on average, had been forecasting adjusted earnings of 26 cents per share on revenue of nearly $275 million, according to FactSet.