Shares of SolarWinds, Inc. (SWI) tumbled more than 7 percent in extended trade Tuesday after the network management software provider's revenue for the first quarter missed analysts' estimates. The company also forecast second-quarter results below Street view and lowered its revenue outlook for fiscal 2013.
However, the Austin, Texas-based company's first-quarter profit surged 34 percent from last year and beat analysts' estimates. In addition, the company raised its full-year earnings outlook.
License revenue for the first quarter rose 12 percent to $30.78 million, while maintenance revenue surged 31 percent to $42.20 million. The company recorded core product transaction volume growth of 53 percent year-over-year for the quarter.
Kevin Thompson, Chief Executive Officer of SolarWinds said, "Despite a good start to the first quarter, solid interest in many of our core products did not translate into the level of new license sales we anticipated and we did not deliver the level of new license sales and total revenue growth we expected for the first quarter of 2013. However, given 31% year-over-year maintenance revenue growth along with the operating leverage inherent in our unique business model, we were once again able to deliver strong profitability that exceeded expectations."
SolarWinds' first-quarter net income was $23.00 million or $0.30 per share, up from $17.13 million or $0.23 per share I the year-ago period.
Adjusted earnings for the quarter were $31.21 million or $0.41 per share, compared to $22.81 million or $0.30 per share in the same period last year. On average, 15 analysts polled by Thomson Reuters expected earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 22 percent to $72.91 million from $59.67 million in the previous-year quarter. Analysts had a consensus revenue estimate of $75.61 million.
Looking ahead to the second quarter, SolarWinds forecast adjusted earnings per share of about $0.37 to $0.38 and revenue in a range of $77.8 million to $78.8 million, representing 21 to 23 percent growth over the year-ago period. Analysts expected the company to report earnings of $0.39 per share for the quarter on revenues of $80.67 million.
For fiscal 2013, SolarWinds now forecasts adjusted earnings in a range of $1.59 to $1.65 per share and revenue in a range of $326.5 to $334.0 million. Earlier, the company forecast adjusted earnings of $1.57 to $1.62 per share and revenue in a range of $330.0 million to $338.0 million. Street expects the company to earn $1.62 per share on revenues of $336.07 million.
Mike Berry, SolarWinds' Chief Financial Officer said, "For the full year, we have increased our non-GAAP operating margin and earnings per share outlook reflecting our performance in the first quarter along with an ongoing confidence in our ability to balance investment in growth with our disciplined ROI-based approach to spending."
SWI closed Tuesday's trading at $50.85, down $0.60 or 1.17 percent on a volume of 2.66 million shares. In after-hours, the stock further declined $3.65 or 7.18 percent to $47.20.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.