Riverbed Technology 1Q profit falls on higher costs

Net income fell to $638,000, or a penny per share, from $3.3 million, or 5 cents per share, in the 2007 first quarter.

Excluding one-time costs and gains, the company earned 11 cents per share.

Sales rose 70 percent to $73 million from $42.8 million.

Analysts polled by Thomson Financial expected profit of 10 cents per share on sales of $73.6 million.

The cost of generating revenue rose to $19.9 million from $12.6 million, while operating expenses rose to $54.2 million from $28.6 million.

Chief Executive Jerry Kennelly said the weak economy led to longer sales cycles with some customers.

The company also announced a share repurchase program worth up to $100 million.

Shares in the San Francisco-based company rose 11 cents to $13.03 in aftermarket activity. They earlier rose 6 cents to close regular trading at $12.92.