Infoblox Soars After Acquisition Report, Then Beats Earnings Expectations

Infoblox Inc. spiked to a 52-week high Wednesday after a report that it was accepting acquisition bids, and the security-software company beat expectations with an earnings report after the market closed. Reuters reported Wednesday afternoon that Infoblox, under pressure from activist investor Starboard Value LP, had launched a sale process, and shares spiked nearly 10% before closing with a 6.6% gain at $21.46. Shares briefly ducked lower than $21 in late trading but bounced back to the closing price after the company released its quarterly earnings report, showing a net loss of $10.3 million, or 18 cents a share, on sales of $86.3 million. After adjustments for stock-based compensation and other factors, Infoblox claimed a profit of 8 cents a share. Analysts polled by FactSet on average expected Infoblox to report adjusted earnings of 7 cents a share on sales of $84.6 million. Infoblox has struggled to find solid footing this year, and launched a strategic review earlier this year that included laying off more than 100 employees.