Boston, MA 06/01/2014 (wallstreetpr) – According to the news released on May 29, 2014, Infoblox Inc (NYSE:BLOX) predicted a lesser than anticipated profit for the present quarter. The network equipment producer forecast worse profit following its report of higher loss in the third quarter. The news of a bigger loss incurred by the company has dragged the share prices down by almost 30% in extended trading.
Chief Executive Officer, Robert Thomas To Step Down Soon:
It has been reported that Chief Executive Officer of the company, Robert Thomas will depart from his current role as soon as the company gets his successor. However, Infoblox did not comment anything on when the CEO will step down. Analysts showed their concerns about the company’s future when Thomas would leave. They raised their apprehension about how Infoblox Inc (NYSE:BLOX) would find a way in the competitive network automation industry. The resignation of the CEO is expected to be the most unsatisfactory development for the company at present.
Greater Net Loss Incurred In This Quarter:
The company, on an adjusted basis, now assumes to break even or earn up to 2 cents a share. Infoblox’s net loss broadened in the quarter that ended on April 30, 2014. In this quarter, the company reported a net loss of $7.4 million, or 14 cents on every share. In comparison, the same was reported to be $257,000, or 1 cent on every share, a year back. The company’s share declined to $14.45.
Stock Prices Reach The Lowest Level Ever:
On Friday, the Infoblox Inc (NYSE:BLOX)’s stock dropped 41%; the lowest ever in its lifetime. Infoblox reported its life low share price the day after the company notified of its lesser than expected profit in its next quarter. The network equipment producer warned of such a disappointing profit level as the company is negatively impacted by sluggish customer addition as well as contract delays.
