Infoblox Loss Widens, Cuts FY Outlook; Shares Plunge 30%

(RTTNews) - Infoblox Inc. (BLOX), a network and data services provider, Thursday reported a loss for third quarter that widened from a year ago, hurt largely by higher operating costs that offset revenue growth.

Moving ahead, the company detailed a weak outlook for the fourth quarter and lowered its full year guidance. Separately, the company said its Chief Executive Officer Robert Thomas will step down. Shares of the company plunged 30 percent in the extended trade, following the news.

The company expects fourth-quarter adjusted earnings of breakeven to $0.02 per share and revenues of $60 million to $61 million. Fourteen analysts polled by Thomson Reuters currently expect earnings of $0.06 per share on revenue of $66.61 million for the fourth quarter.

For the fiscal year, the company now expects adjusted earnings of $0.30 to $0.32 per share and revenues of $245 million to $246 million. Analysts currently see earnings of $0.33 per share on revenue of $252.62 million for 2014.

Previously, Infoblox projected adjusted earnings of $0.30 to $0.34 per share and revenue of about $250 million to $254 million.

Santa Clara, California-based Infoblox said its third-quarter loss widened to $7.4 million or $0.14 per share from $0.3 million or $0.01 per share a year ago.

On an adjusted basis, earnings for the quarter dropped to $0.07 per share from $0.11 per share last year. On average, fourteen analysts expected earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Infoblox said revenues for the quarter grew 5 percent to $61.0 million from $58.0 million a year ago. Twelve analysts had a consensus revenue estimate of $61.65 million for the third quarter.

Gross margins for the quarter dropped to 77.4 percent from 78.1 percent last year. Operating expenses increased to $54.6 million from $45.3 million a year ago.

Separately, Infoblox said its CEO Robert Thomas has decided to step down to pursue other interests and will remain in his present management and board positions pending the appointment of his successor. Thomas joined Infoblox in September 2004 as CEO.

BLOX closed Thursday's trading at $20.52, up $0.37 or 1.84%, on the Nasdaq. The stock further dropped $6.07 or 29.58%, in after-hours trade.