SYS-CON MEDIA Authors: Xenia von Wedel, Peter Silva, Glenn Rossman, Ava Smith, Elizabeth White

News Feed Item

Infoblox Reports Fourth Quarter of Fiscal 2014 Results

Infoblox (NYSE:BLOX), the automated network control company, today reported its financial results for its fourth fiscal quarter ended July 31, 2014. Total net revenue for the fourth quarter of fiscal 2014 was a record $64.9 million, an increase of 3% on a year-over-year basis.

On a GAAP basis, the Company reported a net loss of $9.7 million, or $0.18 loss per fully diluted share, for the fourth quarter of fiscal 2014, compared with a net income of $1.5 million, or $0.03 income per fully diluted share, for the fourth quarter of fiscal 2013.

The Company reported non-GAAP net income of $1.8 million, or $0.03 diluted net income per share on a non-GAAP weighted-average share basis, for the fourth quarter of fiscal 2014, compared with non-GAAP net income of $7.9 million, or $0.14 diluted net income per share on a non-GAAP weighted-average share basis, for the fourth quarter of fiscal 2013. The GAAP to non-GAAP reconciling items for the fourth quarters of fiscal years 2014 and 2013 can be found in the "Reconciliation of GAAP to Non-GAAP Financial Measures" attached to this press release.

“We had a positive finish to fiscal 2014, as our financial results exceeded our expectations in the fourth quarter,” said Robert Thomas, president and chief executive officer. “In the quarter we saw improved execution in both sales and marketing, which was reflected in a number of key metrics. We had a good quarter from a new customer acquisition standpoint and saw improvement in closing seven-figure transactions. The Americas region also had a strong quarter and exceeded its internal revenue target. Finally, our security business also performed very well, as we saw growing demand for our solutions from new and existing customers, in both the enterprise and service provider markets. As we look ahead to Fiscal 2015, we see a number of strong growth drivers to our business and expect it to be a year of continued improvement in execution.”

Financial Outlook

Infoblox announced its outlook of anticipated results for the first quarter ending October 31, 2014. This outlook is based on a number of assumptions that it believes are reasonable at the time of this earnings 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.

For the first fiscal quarter ending October 31, 2014, the Company currently expects:

  • Total net revenue in the range of $63 million to $65 million;
  • Non-GAAP gross margin in the range of 78% to 79%;
  • Non-GAAP operating margin in the range of 1.0% to 3.0%; and
  • Non-GAAP diluted net income per share ("non-GAAP EPS") to be in the range of $0.01 to $0.03, assuming approximately 57.9 million shares on a non-GAAP diluted weighted-average share basis.

About Non-GAAP Financial Measures

To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including non-GAAP gross profit and gross margin, non-GAAP operating income and operating margin, non-GAAP net income, non-GAAP EPS and non-GAAP diluted weighted-average shares outstanding. We also provide first fiscal quarter 2015 estimates for non-GAAP gross margin, non-GAAP operating margin, non-GAAP EPS and non-GAAP diluted weighted-average shares outstanding. We believe these non-GAAP financial measures are helpful in understanding our past financial performance and future results. Our non-GAAP financial measures should not be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand and manage our business and forecast future periods. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. Our non-GAAP financial measures include adjustments based on the following items:

Stock-based compensation expenses: We have excluded the effect of stock-based compensation from our non-GAAP operating results. Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating results. Amortization of intangible assets is a non-cash expense, and it is not part of our core operations. Investors should note that the use of intangible assets contributed to revenues earned during the periods presented and will contribute to future period revenues as well.

Acquisition related expenses: Acquisition related expenses may include transaction costs, costs for transitional employees, other acquired employee related retention costs, integration related professional services, adjustments to the fair value of the acquisition related contingent consideration, and the write-down of certain acquired in-progress research and development intangibles. We believe that to the extent we incur significant expenses in connection with our acquisitions, it is useful for investors to understand the effects of these items on our total operating expenses.

Our non-GAAP Financial Measures are described as follows:

Non-GAAP gross profit and gross margin. Non-GAAP gross profit is gross profit as reported on our consolidated statements of operations, excluding the impact of stock-based compensation and intangible asset amortization expense. Non-GAAP gross margin is non-GAAP gross profit divided by net revenue.

Non-GAAP operating income and operating margin. Non-GAAP operating income is income (loss) from operations as reported on our consolidated statements of operations, excluding the impact of stock-based compensation, intangible asset amortization expense and acquisition related expenses. Non-GAAP operating margin is non-GAAP operating income divided by net revenue.

Non-GAAP net income and non-GAAP EPS. Non-GAAP net income is net income (loss) as reported on our consolidated statements of operations, excluding the impact of stock-based compensation, intangible asset amortization expense and acquisition related expenses. Non-GAAP EPS is non-GAAP net income divided by non-GAAP diluted weighted-average shares outstanding.

For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “Reconciliation of GAAP to Non-GAAP Financial Measures.”

Conference Call & Webcast

Management will host a conference call today, September 4, 2014, at 1:30 p.m. PDT/4:30 p.m. EDT to discuss its fiscal fourth quarter 2014 financial results. To access the call, investors may dial 800-230-1059 (domestic) or 612-234-9959 (international) at least 10 minutes prior to the scheduled start of the call. A live webcast of the call will also be available on the corporate website at: http://ir.infoblox.com. An archive of the webcast will be available to the company’s website and a taped reply will be available for one week at 800-475-6701 (domestic) or 320-365-3844 (international), passcode 333540.

About Infoblox

Infoblox (NYSE:BLOX) delivers network control solutions, the fundamental technology that connects end users, devices, and networks. These solutions enable approximately 7,500 enterprises and service providers to transform, secure, and scale complex networks. Infoblox helps take the burden of complex network control out of human hands, reduce costs, and increase security, accuracy, and uptime. Infoblox (www.infoblox.com) is headquartered in Santa Clara, California and has operations in over 25 countries.

Cautionary Statement

All statements in this release that are not statements of historical fact, including but not limited to the quotation attributable to Mr. Thomas and the statements under “Financial Outlook” are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: unexpected delays in the delivery of our solutions, particularly at the end of the quarter, changes in demand for automated network control solutions; the market acceptance of our products; the fluctuations in our gross margins; the concentration of our customer base; competitive developments including pricing pressures; our ability to manage operating expenses effectively; and the general economic, industry or political conditions in the United States or internationally.

For a detailed discussion of these and other risk factors, please refer to our filings with the Securities and Exchange Commission, which are available on our investor relations Web site (http://ir.infoblox.com/) and on the SEC’s Web site (www.sec.gov).

All information provided in this release and in the attachments is as of September 4, 2014, and stockholders of Infoblox are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Infoblox does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this September 4, 2014 press release, or to reflect the occurrence of unanticipated events.

 

INFOBLOX INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP BASIS

(In thousands, except per share data)

(Unaudited)

 
  Three Months Ended   Year Ended

July 31, 2014

  April 30, 2014   July 31, 2013

July 31, 2014

  July 31, 2013
Net revenue:
Products and licenses $ 32,022 $ 30,799 $ 36,702 $ 130,348 $ 128,203
Services   32,893     30,223     26,363     119,992     96,841  
Total net revenue   64,915     61,022     63,065     250,340     225,044  
Cost of revenue:
Products and licenses 7,235 7,119 8,502 29,327 29,228
Services   7,352     6,665     5,324     26,471     19,025  
Total cost of revenue   14,587     13,784     13,826     55,798     48,253  
Gross profit   50,328     47,238     49,239     194,542     176,791  
Operating expenses:
Research and development 13,670 12,175 11,273 49,289 43,056
Sales and marketing 38,038 34,589 29,508 138,612 112,385
General and administrative   8,108     7,839     7,142     29,781     24,488  
Total operating expenses   59,816     54,603     47,923     217,682     179,929  
Income (loss) from operations (9,488 ) (7,365 ) 1,316 (23,140 ) (3,138 )
Other income (expense), net   62     124     (247 )   (18 )   (618 )
Income (loss) before provision for (benefit from) income taxes (9,426 ) (7,241 ) 1,069 (23,158 ) (3,756 )
Provision for (benefit from) income taxes   266     201     (418 )   919     650  
Net income (loss) $ (9,692 ) $ (7,442 ) $ 1,487   $ (24,077 ) $ (4,406 )
Net income (loss) per share - basic and diluted $ (0.18 ) $ (0.14 ) $ 0.03   $ (0.45 ) $ (0.09 )

Weighted-average shares used in computing basic net income (loss) per share

 

54,727

    54,055     50,861     53,581     48,494  

Weighted-average shares used in computing diluted net income (loss) per share

 

54,727

   

54,055

   

55,826

   

53,581

   

48,494

 
 
 

INFOBLOX INC.

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)

(Unaudited)

 
  Three Months Ended   Year Ended
July 31, 2014   April 30, 2014   July 31, 2013 July 31, 2014   July 31, 2013

Gross Profit Reconciliation:

GAAP gross profit

$ 50,328 $ 47,238 $ 49,239 $ 194,542 $ 176,791
Stock-based compensation expense 1,002 953 415 3,619 1,606
Amortization of intangible assets   290     290     253     1,110     1,015  
Non-GAAP gross profit $ 51,620   $ 48,481   $ 49,907   $ 199,271   $ 179,412  

Gross Margin Reconciliation:

GAAP gross margin 77.5 % 77.4 % 78.1 % 77.7 % 78.6 %
Stock-based compensation expense 1.5 1.5 0.6 1.5 0.7
Amortization of intangible assets   0.5     0.5     0.4     0.4     0.4  
Non-GAAP gross margin   79.5 %   79.4 %   79.1 %   79.6 %   79.7 %

Operating Income (Loss) Reconciliation:

GAAP operating income (loss) $ (9,488 ) $ (7,365 ) $ 1,316 $ (23,140 ) $ (3,138 )
Stock-based compensation expense 10,832 10,674 5,874 40,971 22,064
Amortization of intangible assets   617     617     580     2,418     2,323  
Non-GAAP operating income $ 1,961   $ 3,926   $ 7,770   $ 20,249   $ 21,249  

Operating Margin Reconciliation:

GAAP operating margin (14.6 %) (12.1 %) 2.1 % (9.2 %) (1.4 %)
Stock-based compensation expense 16.7 17.5 9.3 16.4 9.8
Amortization of intangible assets   0.9     1.0     0.9     0.9     1.0  
Non-GAAP operating margin   3.0 %   6.4 %   12.3 %   8.1 %   9.4 %

Net Income (Loss) Reconciliation:

GAAP net income (loss) $ (9,692 ) $ (7,442 ) $ 1,487 $ (24,077 ) $ (4,406 )
Stock-based compensation expense 10,832 10,674 5,874 40,971 22,064
Amortization of intangible assets   617     617     580     2,418     2,323  
Non-GAAP net income $ 1,757   $ 3,849   $ 7,941   $ 19,312   $ 19,981  

Non-GAAP EPS

$ 0.03   $ 0.07   $ 0.14   $ 0.34   $ 0.37  

Shares used in Computing non-GAAP EPS Reconciliation:

Diluted shares:
Weighted-average shares used in calculating GAAP diluted net income (loss) per share 54,727 54,055 55,826 53,581 48,494
Additional dilutive securities for non-GAAP income   1,375     2,540         4,057     5,477  
Weighted-average shares used in calculating non-GAAP diluted net income per share   56,102     56,595     55,826     57,638     53,971  
 
 

INFOBLOX INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

 
  July 31,   July 31,
2014 2013

 

(Unaudited) (a)

ASSETS

CURRENT ASSETS:
Cash and cash equivalents $ 78,535 $ 69,828
Short-term investments 191,316 139,508
Accounts receivable, net 36,420 38,728
Inventory 6,345 4,478
Deferred tax assets 285 1,354
Prepaid expenses and other current assets   7,221     6,023  
Total current assets 320,122 259,919
Property and equipment, net 18,785 18,370
Restricted cash 3,516 3,508
Intangible assets, net 4,096 5,494
Goodwill 33,293 32,726
Other assets   756     443  
TOTAL ASSETS $ 380,568   $ 320,460  

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 15,808 $ 12,387
Accrued compensation 13,197 12,472
Deferred revenue, net   81,964     68,479  
Total current liabilities 110,969 93,338
Deferred revenue, net 34,149 29,693
Deferred tax liability 285 1,055
Other liabilities   6,029     6,821  
TOTAL LIABILITIES   151,432     130,907  
STOCKHOLDERS’ EQUITY:
Convertible preferred stock, $0.0001 par value per share—5,000 shares authorized; no shares issued or outstanding
Common stock, $0.0001 par value per share—100,000 shares authorized; 55,065 shares and 51,670 shares issued and outstanding as of July 31, 2014 and July 31, 2013 6 5
Additional paid-in capital 365,833 302,101
Accumulated other comprehensive loss (84 ) (11 )
Accumulated deficit   (136,619 )   (112,542 )
TOTAL STOCKHOLDERS’ EQUITY   229,136     189,553  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 380,568   $ 320,460  
 

(a) Derived from the July 31, 2013 audited consolidated financial statements.

 
 

INFOBLOX INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 
  Year Ended July 31,
2014   2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (24,077 ) $ (4,406 )
Adjustments to reconcile net loss to net cash provided by operating activities:

 

Stock-based compensation 40,971 22,064
Depreciation and amortization 8,735 6,670
Excess tax benefits from employee stock plans (170 ) (409 )
Amortization of investment premium 547 387
Other 280 (43 )
Changes in operating assets and liabilities:
Accounts receivable, net 2,308 (11,909 )
Inventory (1,867 ) (1,918 )
Prepaid expenses, other current assets and other assets (1,500 ) (2,170 )
Accounts payable and accrued liabilities 3,221 1,762
Accrued compensation 725 2,177
Deferred revenue, net 17,927 21,505
Other liabilities   (792 )   5,904  
Net cash provided by operating activities   46,308     39,614  
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments (186,322 ) (174,478 )
Proceeds from maturities of short-term investments 86,730 34,572
Proceeds from sales of short-term investments 47,180
Purchases of property and equipment (6,352 ) (16,515 )
Business acquisition (1,000 )
Change in restricted cash       625  
Net cash used in investing activities   (59,764 )   (155,796 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under the employee stock plans 21,993 29,223
Excess tax benefits from employee stock plans 170 409
Payment of remaining unpaid initial public offering costs       (235 )

Net cash provided by financing activities

  22,163     29,397  
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 8,707 (86,785 )
CASH AND CASH EQUIVALENTS—Beginning of period   69,828     156,613  
CASH AND CASH EQUIVALENTS—End of period $ 78,535   $ 69,828  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Restricted stock units released in connection with business acquisition $ 573   $  
Cash paid for income taxes, net $ 489   $ 1,120  
Purchases of property and equipment not yet paid $ 484   $ 164  
Change in liability due to vesting of early exercised stock options, net $ 60   $ 224  
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
Software-driven innovation is becoming a primary approach to how businesses create and deliver new value to customers. A survey of 400 business and IT executives by the IBM Institute for Business Value showed businesses that are more effective at software delivery are also more profitable than their peers nearly 70 percent of the time (1). DevOps provides a way for businesses to remain competitive, applying lean and agile principles to software development to speed the delivery of software that ...
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the ...