Infoblox, an automated network control company, announced preliminary results for the second quarter of fiscal year 2014 ended January 31.
According to a release, Infoblox expects net revenue for the second quarter to be approximately $60 million to $61 million, below the company's prior expectations of $65 million to $66 million. On a GAAP basis, the company expects net loss per diluted share for the second quarter to be in the range of $0.08 to $0.10. Non-GAAP net income per diluted share for the second quarter is expected to be in the range of $0.10 to $0.12, compared with the company's prior expectations of $0.09 to $0.11 per diluted share. All non-GAAP measures exclude estimates for stock-based compensation expenses, amortization of intangible assets and acquisition related expenses. For the second quarter, non-GAAP net income per diluted share differs from GAAP net loss per diluted share because it excludes stock-based compensation expense of approximately $11 million and intangible asset amortization expense of approximately $1 million.
These preliminary net revenue and earnings (loss) per share estimates are based on management's initial review of operations for the quarter ended January 31, and are subject to the completion of the company's customary quarterly closing and review procedures.
"The revenue shortfall in the second quarter was primarily attributable to three factors," said Robert Thomas, president and chief executive officer. "First, while sales through the first two months of the quarter met our internal expectations, we experienced a much weaker January than expected. Second, we had fewer $1 million- plus transactions in the quarter than we typically do. Finally, our Federal business came in below our expectations. While we are disappointed that we fell short of our financial expectations for the quarter, we remain confident in our strategy, the large market opportunity, our competitive differentiation and the compelling value proposition our products deliver to customers."
Infoblox is also updating its outlook for the fiscal year ending July 31. The company now expects net revenue for the year to be approximately $250 million to $254 million, versus the company's prior expectations of $270 million to $276 million. The company expects non-GAAP net income to be in the range of $0.30 to $0.34 diluted earnings per share, compared with the company's prior expectations of $0.44 to $0.54 diluted earnings per share. This outlook is based on a number of assumptions that the company believes are reasonable at the time of this press release. Information regarding potential risks that could cause the actual results to differ from these forward-looking statements is set forth below and in Infoblox's filings with the Securities and Exchange Commission.
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