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08 Jun 2007
A band of disgruntled Packeteer shareholders have set channel tongues wagging by calling for a “prompt sale” of the application acceleration vendor.
Packeteer’s chief executive Dave Cote admitted the vendor had suffered a “disappointing” start to 2007 as first-quarter turnover sank 19 per cent sequentially to $34.7m.
A group of Packeteer investors, led by hedge fund Elliott Associates LP, are now lobbying for the vendor to seek a buyer, arguing that it “has failed to capitalise on its leading technology” and that it would make an ideal target for a larger acquirer. Elliott Associates also argued the market is “increasingly competitive”.
Marcus Chambers, vice-president of EMEA at rival Riverbed, which posted a 212 per cent growth in Q1 revenues, said: “We’re growing faster than the market so it’s easy to see we’re hurting the competition. I think there will be consolidation in the WAN application acceleration market because some of our competitors’ noses are bleeding.”
Packeteer declined to comment to CRN, but Bernie Dodwell, European security manager at Packeteer distributor Westcon, said: “I can understand there may be a drive from Packeteer shareholders to diversify the company. It could be argued that Packeteer is a one-technology firm, albeit a very successful one.”
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