Riverbed Technology Inc.’s cash burn intensified during the third quarter, reflecting the information-technology company’s eroding position in the digital-networking market, WSJ Pro Bankruptcy reported. The private equity-owned information-technology company burned through $50 million in the quarter, compared with a $33 million cash burn over the same period a year ago. While revenue declined by 9 percent year-over-year to $199 million, earnings before interest, taxes, depreciation and amortization rose 13 percent to $67 million. The company suffered a 12 percent decline in its digital networking product group, which accounted for 91 percent of revenues. Sources say that its share of the digital networking market is being overtaken by competitors who have an edge in a technology called SD-LAN, which offers a wireless network architecture, as opposed to Riverbed’s core SD-WAN solutions, which are more hardware-dependent.
