Infoblox Plummets After Revenue Warning
Infoblox Inc. warned investors Monday that revenue would come in well below expectations, and shares in the networking-software company dove more than 12% in late trading. Infoblox said it expects revenue for the first quarter to be $81 million to $82 million, after previously providing a forecast of $91 million to $93 million, and expects adjusted profit of 5 cents to 6 cents a share. Analysts polled by FactSet expected the company to report adjusted earnings of 6 cents a share on sales of $92 million. Infoblox also dropped its full-year revenue guidance to $354 million to $358 million, compared with a previous estimate of $370 to $380 million. Chief Executive Jesper Andersen, a former Cisco Systems Inc. executive who was brought in to stem a decline at Infoblox, said weakness in enterprise IT spending, especially in North America, was to blame for the shortfall. "We are actively addressing these near-term challenges by continuing to focus on improvements in sales execution and operational efficiency," the CEO said in Monday's announcement. Infoblox shares fell lower than $14 in late trading after closing with a 0.5% decline at $15.52. The company expects to fully report earnings and hold a conference call on May 25.
Copyright © 2016 MarketWatch, Inc.