Tags: Infoblox | Shares | Forecast | CEO

Infoblox Shares Plunge after Weak Forecast, CEO Resignation

Thursday, 29 May 2014 06:53 PM

Network equipment maker Infoblox Inc. forecast a lower-than-expected profit for the current quarter and said its chief executive is stepping down, sending its shares down as much as 30 percent in extended trading Thursday.

Infoblox said it now expected to break even or earn up to 2 cents per share on an adjusted basis for the quarter ending July. Analysts on average were expecting 6 cents per share, according to Thomson Reuters I/B/E/S.

The company also reported a bigger loss of $7.4 million, or 14 cents per share, for the third quarter ended April 30 from $257,000, or 1 cent per share, a year earlier.

"While we made progress in a few areas ..., we again experienced challenges in closing seven-figure transactions," outgoing Chief Executive Robert Thomas said in a statement.

Thomas, who has been with Infoblox for nearly a decade, will step down once the company finds a successor.

Wedbush Securities analyst Sanjit Singh said customers were more focused on areas such as security and networking instead of network automation.

Excluding items, Infoblox earned 7 cents per share, 4 cents above the average analyst estimate.

Revenue rose 5 percent to $61 million, but fell slightly short of the $61.7 million analysts had forecasted.

Infoblox shares fell closed at $20.52 on the New York Stock Exchange on Thursday. In late trading, the shares were down 29 percent at $14.51.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
InvestingAnalysis
Network equipment maker Infoblox Inc. forecast a lower-than-expected profit for the current quarter and said its chief executive is stepping down, sending its shares down as much as 30 percent in extended trading Thursday.
Infoblox, Shares, Forecast, CEO
229
2014-53-29
Thursday, 29 May 2014 06:53 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved