Infoblox missed on the estimates from analysts on Friday. The company issued an outlook report on the full fiscal 2013 and expected profits per share that were lower than what experts had gauged. Its shares were down 13 percent in the afternoon trading following the report.
The company expects the estimated profits per share for the next fiscal year in the range from 4 to 7 cents. Analysts, prior to the report, came to a consensus of 11 cents for the next year. However, the company said it expects the sales to rise next year to $198 Million, which is above the analysts’ prediction of $195 Million.
The EPS down from analyst estimates is what has made the investors finicky about the Infoblox shares. Though the company saw a booming 2012 despite the economic conditions, it sees a higher operating cost in the coming months.
The adoption of its products is still in its nascent stages. Although more and more companies are adopting Infoblox’s products due to the increasing number of nodes in terms of PCs, tablets, smartphones and data centres, the rate is slow as compared to the overall industry.
Infoblox produces hardware and software products for the automation of computer networks at corporate levels. Its equipment automatically assigns IP addresses to peripheral devices like printers, scanners, lights, cameras and facsimile machines in addition to tablets and smartphones.
The biggest competitor of the company is Microsoft with its Windows Server operating system but companies like BlueCat Networks, BT Group and Alcatel-Lucent also offer competitive products.
The company announced profit of a cent per share in fourth fiscal quarter ended July 31 with the sales of $45.1 Million.
“Infoblox delivered solid results during a product-transition quarter,” said Brent Bracelin, an analyst at Pacific Crest Securities. But he also said the company’s next-generation Trinzic appliance accounted for about 65% of total sales in quarter, “below the anticipated 80%.”