Qualys Dips On Downbeat Forecast

Shares of

tumbled more than 25 percent in after-hours trading after the company issued a downbeat outlook. For the second quarter, Qualys expects adjusted earnings of $0.09 to $0.11 per share on revenue of $39.5 million to $40 million. Analysts had projected earnings of $0.13 per share on revenue of $40.7 million For the year, the company projects adjusted earnings of $0.50 to $0.55 per share on revenue of $165 million to $166.5 million. Analysts had expected earnings of $0.53 per share on revenue of $168.4 million. The Redwood City, California-based company reported quarterly net income of $3.0 million, or $0.08 per share, versus a year-ago net loss of $0.4 million, or $0.01 per share. Non-GAAP net income climbed to $0.15 per share from $0.05 per share. Its revenue rose 24 percent to $37.5 million from $30.4 million. However, analysts were estimating a profit of $0.11 per share on revenue of $37.99 million. The average estimate among 17 Estimize users was for earnings of $0.14 per share on revenue of $38.58 million. At March 31, 2015, total deferred revenue gained 22 percent to $98.0 million, versus $80.3 million at March 31, 2014. GAAP gross profit climbed 26 percent to $29.5 million from $23.5 million, while GAAP gross margin widened to 79 percent from 77 percent. Philippe Courtot, Chairman, President and Chief Executive Officer of Qualys, said, "We had a good quarter with continued success across our business, including laying the groundwork for three major new services that we launched at the RSA Conference last month. These launches, which collectively double our addressable market, include: first and foremost, our disruptive Cloud Agent Platform; second, the seamless integration of our Web Application Scanning and Web Application Firewall services, which is an industry first; and third, the extension to internal networks of our successful Continuous Monitoring solution for perimeters. We believe that these technological innovations and enhancements will provide Qualys with significant competitive and strategic advantages, and make our solutions even more strategic to our customers and partners." Qualys shares fell 26.22 percent to $40.64 in the after-hours trading session.