NEW YORK (AP) — Shares of Infoblox are plunging toward an all-time low after the company's CEO said he would step down and the outlook from the network automation company spooked investors.
It is the second major tumble this year, following a 48 percent dive on in early February on a dismal revenue forecast.
Shares are down 34 percent before the opening bell Friday, on track to sink below the previous all-time low reached in October 2012.
Chairman Michael Goguen said that the board would have been "pleased" if Robert Thomas remained as chief executive, but that it respects his decision to move on.
Thomas, 64, will remain with the company until his replacement is found. He joined Infoblox in 2004 and is also president, and has a seat on the board.
The company announced Thomas' decision late Thursday after the company projected earnings of 2 cents per share in the fourth quarter, a third of what Wall Street had been expecting. Its revenue projections fell short as well and the company's third-quarter losses exceeded last year's.
Infoblox lost $7.4 million, or 14 cents per share, in the quarter ending April 30, compared with a loss of $257,000, or 1 cent per share, in the same period a year ago.
Revenue rose 5 percent to $61 million from $58 million. It had adjusted earnings of 7 cents per share. Analysts expected earnings of 3 cents per share and revenue of $61.6 million, according to polling by FactSet.
William Blair analyst Jason Ader downgraded the company Friday due to uncertainty about its growth and leadership.
For the full year that ends July 31, the company expects earnings between 30 and 32 cents per share and revenue of between $245 million and $246 million. Analysts had expected earnings of 33 cents per share and revenue of $252.6 million.
Shares of Infoblox, which is based in Santa Clara, California, fell $7.15 to $13.37 in premarket trading Friday. If that trend holds, shares will fall below the previous low of $13.73, right before the company's stock began to take off in late 2012.