What were your takeaways?
To me, they admitted to past failures (which really wasn’t hard to see) and their now plan seems more crisp but not really sure how to execute?
Sounds like Xirrus and Aternity will be sold to keep the rest of the company away from bankruptcy or debt restructuring? Then what? The rest of the stuff is garbage lol
Got rid of JK to sell the company. 5 year plan:
https://www.thelayoff.com/t/104ch0TD
I hated seeing their smug faces. They're the ones destroying the company. Instead of focusing on integrating the products, making them better and more competitive which will indirectly lead to long term market growth, they only want to cut costs, and divide and sell. That's not real leadership.
quite the opposite, market wise integrated solution is almost always better than standalone ones. However, financially, a promising spined off division might worth more than the original whole company. One can google "why create a new division " to see the advantages.
An somewhat related example, TB bought compuware for 2.5b, spined off Dynatrace as standalone company and now value Dynatrace at 4b.
4x revenue is a understatement. if you ever trade tech stocks before you will find 10x or 40x more common in software/internet section for decent double digit growth company.
Selling for about 4x revenue is typical in this industry. So to sell for $2b you are assuming revenue in neighborhood of $500m. You can sell for higher multiple if you can convince buyer of hyper growth potential
What exactly has TB/RVBD done to increase its valuation since they bought it in 2016? Added innovative features? Dramatically expanded its customer base?
I thought the idea was to integrate with rest of portfolio so the sum would be greater than the parts.
How does ripping it back out into standalone make it more valuable than it was when they bought it?
When it sells what do they do with the money - assuming $2B. Pay down debt, Distribute to TB and execs or does it come back to SH and SC employees?
So let me get this straight...they bought the entire company for $3.6b in 2015 and are now pinning their hopes on a product they didn’t even own until 2016 which up until today has produced revenue so modest that it has failed to put a dent in their overall declining top line?
After creation of the new divisision, TB might have the CIBU division carry all the debt which makes aternity debt free. Then we will have a software "startup" with no debt, 3 digit growth, and actually making money. Company like this has extremely high valuation in today's market and The valuation is never deternined by he profit the company makes. Look at dynatrace , another TB company, from what I learnt in their recently filed S1 form, they even have recent quarters with negative profit yet worth 4b, surprise?
We need morale building activities with the rest of the people
When will we see the promo list?
Retract fatso. I’ve just been informed she recently lost 100+ lbs.
She s—s! How’s q3 hanging? Silver peak hiring?
Beware of Ursula. She’s a major kiss *** yet talks sh*t about execs she works with & supports as well as those she considers her minions. Not surprised fatso’s still there. She’s good at manipulating and had a major say on who should be laid off in sales.
If you’re measuring success in EBITDA, you’re doing it wrong and part of the reason Riverbed is failing.
The idea was to integrate Xirrus with SDWAN and have a Meraki-like platform. But we just couldn’t execute.
"Aternity is worth 2-3 billion?"
Unfortunately, not even close. Possibly up to $50 million but even that would be a stretch as EUE is now a much more crowded market than many at RVBD realize. Potential acquirers each already have their own sales force, customer base, etc... so this would be a matter of just buying the product itself. The newly-minted Aternity "division" would probably not draw any interest.
I think we hung onto Xirrus for too long and now that the deal fell through, its hurting rather than helping, sigh. What a missed opportunity.
Someone in another thread mentioned Aternity is worth 2-3 billion?! Or is this hot air? Isn’t that the amount owed to TB? When it is sold and absolves the word amount, what other product is making us $?
Aternity probably worth more than the rest of company as it's pure software based and has very high EBITDA multiples compared to the hardware division.
The sale of Xirrus fell through when the buyer had a terrible IPO. It will be tough to find another buyer as virtually every networking company already has a wifi page in their portfolio. Xirrus/SF will probably both be shuttered this year.
WAN op sales down 40%. Cannot sell Xirrus/Steelfusion from what it seems. Without being able to sell Aternity, sounds like we are putting a huge bet on our SD-WAN/Versa partnership, but still cannot quote this or really even talk about the details. SteelCentral is a strong portfolio but there are stronger players in the market with more brand presence. Focus on selling App Accelerator, but unless you have a substantial amount of licenses you are selling these at $.48/license and maybe making $30-$50k towards your 2.5-5 mil number....
Transitory quota adjustments anyone?
It sounds like Aternity is about to be kicked out of the Riverbed nest. It is now nicely segregated from the rest of the company and ready to be sold, maybe soon. Mgt said it would run it like a startup, but the players have no start up equity play. When it is sold, chances are good worker bees in the Aternity unit get paid out at 3 cents/share when the new company acquires. Not a lot of incentive to stay.
Who did they blame? Trump? Climate change?
Typical. Lots of words. No depth. No plan. No ability to execute. This “leadership” team has no ability beyond remembering past glories and placing blame on others. Pm and Ae are a joke. LS is a train wreck.
Sad to see a once strong company fall apart due to total lack of leadership, strategy, or ability to get out of their own way.
lots of words, no meaning
Assuming there are buyers - selling Xirrus and Aternity should be enough to keep the rest of the company afloat for another month or two. Then what?
What past failures did they admit? I am curious.