Boston, MA 02/11/2014 (wallstreetpr) – Shares of Infoblox Inc (NYSE:BLOX) plummeted 47.86% at time of writing and are currently trading at $17.27. This dip comes in the wake of the company’s announcement that it has axed its quarterly projection, citing much weaker-than-expected sales last month. Robert Thomas, the Chief Executive Officer of the company said that Infoblox Inc (NYSE:BLOX) had much fewer $1M-plus transactions in this quarter than they generally do. The company’s federal business also came in below their expectations.
Analyst speak
Sanjit Singh, analyst at Wedbush downgraded Infoblox Inc (NYSE:BLOX) to a “neutral” rating from “outperform”, citing that there was clear deceleration in the company’s business. Infoblox Inc (NYSE:BLOX), the network equipment maker had projected Q2r revenue below the average analysts’ projection, citing its disappointing business with the United States government. In a statement, the CEO said that while the sales through the first 2 months of this quarter met the company’s internal expectations, they experienced a much-weaker January than they had expected. Infoblox Inc (NYSE:BLOX) projected adjusted earnings in the 10-12 cents/ share range on revenue of $60 to $61M for the quarter that ended 31 January.
Dipping performance
After the Monday bell, Infoblox Inc (NYSE:BLOX) had warned that the company’s revenue for the full-year that ends July would not meet its initial guidance. The company’s management has now forecasted sales of $250M-$254M, which is below the guidance of $270M-$276M and the average analyst’ estimate is $274.52 million. Infoblox Inc (NYSE:BLOX), on the basis of the change in its net income from the same quarter of the previous year, has notably underperformed in comparison to the Standard & Poor 500 and it did not exceed the performance of the broader Software industry. Infoblox Inc (NYSE:BLOX)’s net income has droped by 6.7% in comparison to the same quarter of the previous year, dipping from -$2.39M to -$2.55 million.
