Infoblox Profit Tops View, But Shares Down On Weak Q2 Outlook

(RTTNews) - Infoblox Inc. (BLOX), a network and data services provider, Tuesday said its loss for the first quarter widened from last year, hurt largely by higher operating costs despite revenues jumping 28 percent. On an adjusted basis, earnings for the quarter came in ahead of analysts' expectations, as did revenues.

Looking ahead, the company provided a poor outlook for the second quarter, sending its shares plunging down 19 percent in the extended trading hours.

Santa Clara, California-based Infoblox's first-quarter loss widened to $2.5 million from $2.4 million last year. On a per-share basis, loss was $0.05 per share, flat with last year.

On an adjusted basis, earnings for the quarter improved to $0.12 per share from $0.06 per share last year. On average, 10 analysts polled by Thomson Reuters expected earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.

Infoblox said revenues for the quarter grew 28 percent to $63.5 million from $49.41 million last year. Analysts expected revenues of $63.50 million for the quarter.

"I am pleased with our results and the strong start to fiscal 2014," said Chief Executive Robert Thomas. "Complementing the strong demand from our existing customers, our cumulative customer count reached approximately 6,900 customers in the first quarter."

Gross margins for the quarter dropped to 78.4 percent from 79.6 percent last year. Operating expenses increased to $51.7 million from $41.5 million a year ago.

Looking ahead to the second quarter, the company expects adjusted earnings of $0.09 to $0.11 per share, with revenues between $65 million to $66 million. Analysts currently expect earnings of $0.12 per share on revenues of $67.04 million for the quarter.

For the fiscal year 2014, the company continues to see adjusted earnings of $0.44 to $0.54 per share, with revenues of $270 million to $276 million. Analysts currently expect full-year earnings of $0.53 per share on revenues of $276.91 million.

BLOX closed Tuesday's trading at $44.96, up $2.03 or 4.73%, on the NYSE. The stock, however, plunged $8.46 or 18.82% in after-hours trade.