New Internet protocol to boost Infoblox revenue in 2013

Reuters News

10/11/2012 3:36:58 PM - Reuters News

By Chandni Doulatramani

(Reuters) - Network automation company Infoblox Inc expects the widespread adoption of the latest Internet protocol, which regulates Internet addresses, to drive revenue growth significantly toward the end of 2013, its chief executive said.

"As the adoption of IPv6 grows, that will definitely drive more business for us," CEO Robert Thomas told Reuters, but added that the adoption will be somewhat slow over the next few months.

Infoblox's automation products help manage Internet addresses to save time and reduce human error.

The U.S. government had set a deadline of September 30 for federal agencies to adopt IPv6, the new Internet Protocol (IP) that allows for far more addresses to be assigned than is possible with the previous standard, IPv4.

But most federal agencies likely missed that deadline, according to a recent report by the National Institute of Standards and Technology.

Europe and Asia have both run out of IPv4 addresses and the United States will run out sometime in the middle of next year, Thomas said, adding that managing IPv6 addresses without automation would not be possible.

Infoblox, which competes with Alcatel-Lucent SA and Toronto-based BlueCat Networks, and currently holds 40 percent of the IP management market, has been gaining market share from both these competitors, Thomas said.

Alcatel-Lucent declined to comment for this article, while BlueCat Networks could not be immediately reached for a comment.

Thomas, Infoblox's CEO of eight years, said the company had not seen dramatic growth in Europe over the last several quarters, and does not expect the region to grow too much over the next two or three quarters.

The company, which gets a quarter of its total revenue from Europe, is now looking to the Asia-Pacific region, eastern European countries and Turkey to help offset slow growth in the rest of Europe.

Infoblox's revenue for fiscal 2012 ended July 31 was $169.2 million. The company had last month said it expects 2013 revenue of between $195 million and $202 million.

Infoblox, which has a market value of about $927 million, has about 5900 customers including Boeing Co, Caterpillar Inc, Vodafone Group PLC, Verizon Communications Inc and AT&T Inc.

The company, which currently has 531 employees, will hire at least 100 more by July 2013.

Shares of Infoblox, which listed on the New York Stock Exchange in April at $16, closed at $20 on Thursday. (Additional reporting by Sayantani Ghosh in Bangalore; Editing by Supriya Kurane)