Infoblox Shares Tumble On Weak Outlook

(RTTNews) - Shares of Infoblox Inc. (BLOX) tumbled 31 percent in extended trades Monday after the network and data services provider lowered its revenue outlook for the second quarter and also its financial outlook for fiscal 2014. However, the company raised its forecast for second-quarter adjusted earnings.

Robert Thomas, President and Chief Executive Officer of Infoblox said, "The revenue shortfall in the second quarter was primarily attributable to three factors. First, while sales through the first two months of the quarter met our internal expectations, we experienced a much weaker January than expected. Second, we had fewer $1 million-plus transactions in the quarter than we typically do. Finally, our Federal business came in below our expectations."

For the second quarter, Santa Clara, California-based Infoblox now forecasts loss of $0.08 to $0.10 per share, adjusted earnings of $0.10 to $0.12 per share, and revenues in a range of about $60 million to $61 million. Earlier, the company forecast adjusted earnings of $0.09 to $0.11 per share for the quarter on revenues of $65 million to $66 million.

The adjusted results for the quarter exclude stock-based compensation expense of about $11 million and intangible asset amortization expense of about $1 million.

On average, analysts polled by Thomson Reuters currently expect the company to report earnings of $0.10 per share for the quarter on revenues of $65.65 million. Analysts estimates typically exclude one-time items.

For fiscal 2014, Infoblox now forecasts adjusted earnings of $0.30 to $0.34 per share on net revenue of about $250 million to $254 million. Earlier, the company expected adjusted earnings of $0.44 to $0.54 per share for the year on net revenues of $270 million to $276 million.

Analysts currently estimate the company to report earnings of $0.52 per share for the year on revenues of $274.52 million.

BLOX closed Monday's regular trading session at $33.14, down $0.40 or 1.19 percent on a volume of 1.42 million shares. In after-hours, the stock further declined $10.28 or 31.02 percent to $22.86.