May 29, 2014 / 10:46 PM / 4 years ago

UPDATE 1-Infoblox shares plunge after weak forecast, CEO resignation

(Adds analyst estimate, CEO and analyst comments)

By Subrat Patnaik and Mridhula Raghavan

May 29 (Reuters) - Network equipment maker Infoblox Inc forecast a lower-than-expected profit for the current quarter and said its chief executive is stepping down, sending its shares down as much as 30 percent in extended trading.

Infoblox said it now expected to break even or earn up to 2 cents per share on an adjusted basis for the quarter ending July. Analysts on average were expecting 6 cents per share, according to Thomson Reuters I/B/E/S.

The company also reported a bigger loss of $7.4 million, or 14 cents per share, for the third quarter ended April 30 from $257,000, or 1 cent per share, a year earlier.

“While we made progress in a few areas ..., we again experienced challenges in closing seven-figure transactions,” outgoing Chief Executive Robert Thomas said in a statement.

Thomas, who has been with Infoblox for nearly a decade, will step down once the company finds a successor.

Wedbush Securities analyst Sanjit Singh said customers were more focused on areas such as security and networking instead of network automation.

Excluding items, Infoblox earned 7 cents per share, 4 cents above the average analyst estimate.

Revenue rose 5 percent to $61 million, but fell slightly short of the $61.7 million analysts had forecasted.

Infoblox shares fell closed at $20.52 on the New York Stock Exchange on Thursday.

Reporting By Subrat Patnaik

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