SUNNYVALE, Calif. (AP) â€" Blue Coat Systems Inc.'s fiscal fourth-quarter earnings plummeted 62 percent, a letdown that was compounded by a disappointing forecast from the Internet networking services provider.
The discouraging news released Thursday caused Blue Coat shares to drop more than 8 percent in after-hours trading.
The company, based in Sunnyvale, Calif., earned $9 million, or 18 cents per share, in the three months ended in April. That compared with net income of $23.6 million, or 49 cents per share, at the same time last year.
If not for employee stock compensation and certain other costs, Blue Coat said it would have earned 30 cents per share. On that basis, the results missed the average earnings estimate of 35 cents per share among analysts polled by FactSet.
Revenue for the period fell 9 percent to $120.7 million â€" about $4 million below analyst projections.
The misses weren't a surprise because Blue Coat had released its preliminary fourth-quarter numbers three weeks ago. The final figure fell within that range. But its outlook for the current quarter ending in July deepened investor concerns about the company.
Blue Coat predicted its earnings per share, excluding certain items, will range from 18 cents to 25 cents on revenue from $110 million to $117 million. Analysts have been expecting higher earnings of 33 cents per share on revenue of $122 million.
Blue Coat CEO Mike Borman said the company is "in transition" as it tries to return to growth mode. "I am not satisfied with our revenue performance," he said.
Investor echoed his dismay as Blue Coat shares shed $1.81, or 8.1 percent, to $20.55 in Thursday's extended trading. The stock has traded in a range of $17.21 to $32.22 during the past year.
For the full fiscal year, Blue earned $47 million, or 98 cents per share, on revenue of $487 million. That compared with net income of $42.9 million, or 93 cents per share, on revenue of $496 million in the previous year.
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