Tuesday, business software and services provider Blue Coat Systems Inc. (BCSI), reported a swing to a profit in the first quarter, helped by a double-digit growth in revenues from last year. Both earnings and revenues came in ahead of analysts' consensus estimate. Looking ahead, the company also provided its profit forecast for the second quarter in line with current Street estimates. In a separate development, Blue Coat also announced the appointment of Gordon Brooks as its chief financial officer, effective September 1. Blue Coat shares rose more than 7% in the after-hours trading, following the announcement of results.
The Sunnyvale, California - based company's net income for the first quarter was $4.00 million or $0.09 per share, compared to a net loss of $6.00 million or $0.15 per share in the year-ago quarter.
The results for the first quarter included charges related to the fair value write-up of acquired inventory sold, stock-based compensation expense, amortization of intangible assets, expenses for matters related to the stock option investigation, and restructuring expenses. The results for the quarter also assumes a long-term effective tax rate of 30% on non-GAAP pre-tax income.
Net income, excluding items, for the quarter increased to $10.10 million or $0.23 per share from $7.00 million or $0.16 per share in the year-ago quarter.
On average, fourteen analysts polled by Thomson Reuters expected the company to earn $0.22 per share for the quarter. Analysts' estimate typically exclude one-time charges and gains.
Total net revenues for the quarter increased 13% to $116.00 million from $102.50 million in the year-earlier quarter, topping analysts' consensus revenue estimate of $115.83 million.
Segment wise, product revenue for the quarter was virtually flat at $74.00 million with last year, while revenue from services rose to $42.30 million from $28.60 million in the year-earlier quarter.
Operating expenses for the quarter increased to $80.00 million from $75.60 million in the same quarter last year. Operating income was $4.52 million, compared to operating loss of $5.14 million in the corresponding quarter last year.
For the second quarter of 2009, Blue Coat Systems currently expects net income in the range of $0.08 - $0.14 per share and adjusted net income in the range of $0.23 - $0.28 per share. Net revenue for the quarter is expected to range between $116 million and $121 million.
The Street currently estimates earnings of $0.24 per share, on revenues of $120.00 million for the second quarter.
In a separate development, the company announced the appointment of Gordon Brooks as senior vice president and CFO. In his new role, Brooks will be responsible for leading Blue Coat's worldwide finance and accounting organization and will report directly to Brian NeSmith, president and chief executive officer.
Brooks joins Blue Coat from VMware where he served as vice president, corporate finance, following his role as chief financial officer for Spikesource, Inc. Earlier, he served as senior vice president of finance and corporate controller for BEA Systems, Inc.
BCSI closed Tuesday's trading at $17.26, down $0.03 or 0.17%, on a volume of 1.85 million shares on the Nasdaq. In after hours, the stock gained $1.24 or 7.18%, trading at $18.50.
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