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Infoblox Rally after Q3 Results and FY 2013 Revenue Guidance (BLOX)

Shares of Infoblox Inc. (NYSE: BLOX) rallied on Friday after the automated network controller, late last evening reported better-than-expected earnings and revenue for the fiscal third quarter and provided upbeat guidance for the current quarter.

Higher revenue, stronger gross margin boosted the bottom line

The Santa Clara Calif. based Company, which went public last year, reported a net loss of $0.3 million or penny a share, compared to a net loss of $1 million or 7 cents a share, in the same quarter of last year.

Stripping out onetime items, adjusted earnings stood at $ 6 million or 11 cents a share up from $2 million or 5 cents a share, in the year-earlier quarter. Analysts polled by Thomson Reuters were expecting earnings of 6 cents a share.

Revenue soared 34% to $58 million in the fiscal third quarter from $43 million, in the same quarter of last year. Analysts’ consensus estimate was for $56.06 million.

Gross margin widened to 78.1% from 77.5% while operating margin came at 0.1% up from minus 1.8% in the same quarter of last fiscal year.

For the current quarter, Infoblox anticipates non-GAAP earnings of 8 cents to 9 cents a share on revenue of $58 million to $59 million. Analysts’ consensus forecast was for earnings of 7 cents a share on revenue of $58.26 million.

For the current fiscal year, the Company upwardly revised its revenue guidance. Infoblox now expects full-year revenue to be in the range of $220 million to $221 million compared to its initial projection of $216 million to $219 million. Analysts’ consensus estimate was for revenue of $218.26 million.

Meanwhile, equity research firm, Wedbush raised its price target on the stock to $28 from $24 and maintained “outperform” rating. The firm said in its research note that Infoblox posted strong quarterly results at a time when most of its peers have provided weak outlook amid weak spending.

William Blair’s Jason Ader also reiterated “outperform” rating on the stock, saying “The quarter produced broad-based success, with no real bones to pick,” in a research note.


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