Infoblox Posts Q4 Loss, But Tops View, Shares Up 10%

(RTTNews) - Infoblox Inc. (BLOX), a network and data services provider, Thursday posted a loss for fourth quarter from a profit last year, hurt largely by higher operating costs and lower gross margins that offset a revenue growth. Earnings for the quarter came in ahead of analysts estimates, as did revenues. Shares of the company gained 10 percent in the after-hours trade following the news.

Santa Clara, California-based Infoblox reported fourth-quarter loss of $9.7 million or $0.18 per share, compared to last year's profit of $1.5 million or $0.03 per share.

Adjusted profit for the quarter was $1.8 million or $0.03 per share, down from $7.9 million or $0.14 per share last year. On average, 13 analysts expected earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Infoblox said revenues for the quarter grew 3 percent to $64.9 million from $63.1 million last year. Eleven analysts had a consensus revenue estimate of $60.49 million for the quarter.

Gross margins for the quarter dropped to 77.5 percent from 78.1 percent last year. Operating expenses increased to $59.8 million from $47.9 million a year ago.

"We had a positive finish to fiscal 2014, as our financial results exceeded our expectations in the fourth quarter," said Robert Thomas, president and chief executive officer. "In the quarter we saw improved execution in both sales and marketing, which was reflected in a number of key metrics."

Looking forward to the first quarter, the company expects adjusted earnings of $0.01 to $0.03 per share and revenues of $63 million to $65 million. Analysts currently estimate earnings of $0.03 per share on revenues of $61.45 million.

BLOX closed Thursday's trading at $13.58, down $0.16 or 1.16%, on the Nasdaq. The stock, however, gained $1.42 or 10.46%, in the after-hours trade.