Boston, MA 06/09/2014 (wallstreetpr) – Infoblox Inc (NYSE:BLOX), an automated network company, delivers network control solutions to transform and secure complex networks. Recently, Infoblox reported its third quarter financial results ended April 30, 2014 with higher net loss of $7.4 million than previous year period.
Hightlights
Total net revenue during the periods was $61.0 million, up by 5% compared to same period 2013, but lower than the prior guidance of $61-$62 million. The increase was due to 24% YoY increase in service revenues, resulted with growing customer base. It was partly offset the 8.3% YoY decline in revenue from products and licenses, as a result, of decreasing sales of its solutions.
The increase was also due to positive growth in EMEA (+15%) and APAC (+23%) region, partially offset the marginal decrease in revenues from Americas.
Non-GAAP gross margin for products and licenses improved to 78.5% from 77.8% in 3Q2013 due to lower cost of revenues coupled with lower revenue. However, the rising costs of services decreased the non-GAAP gross margin to 80.4% during 3Q2014 (3Q2013: 81.2%).
But, higher R&D and SG&A costs during the period compressed the non-GAAP operating margin by 4.4 percentage points to 6.4% (3Q2013: 10.8%). Accordingly, non-GAAP EPS was $0.07 reduced from non-GAAP EPS of $0.11 during 3Q2013.
Infoblox generated $9.5 million of cash from operation during 3Q2014. Infoblox Inc (NYSE:BLOX) used lower cash in capital expenditures, but received funds from invested securities. So, total cash as of April 30, 2014 for Infoblox was $91.7 million.
Outlook
Infoblox Inc (NYSE:BLOX) continues to create opportunities in the growing addressable market and expects top-line growth and improves product sales across the operating segments. As a result, Infoblox expects total net revenues of $245-$246 million with non-GAAP gross margin of 7.5% to 8% and non-GAAP EPS of $0.30 to $0.32 during FY2014.
