Blue Coat posts profit as sales rise slightly

AP News
Posted: Nov 24, 2009 7:51 PM

Blue Coat Systems Inc. on Tuesday reported a fiscal second-quarter profit, reversing a year-ago loss, as sales of its security hardware and software products rose slightly and costs declined.

The company earned $8.4 million, or 19 cents per share, in the quarter ended October 31, compared with a loss of $251,000, or a penny per share, in the fiscal second quarter a year ago.

Adjusted to exclude inventory charges, stock-based compensation expense, debt and restructuring costs, the company reported earnings of $13.1 million, or 29 cents per share, in the latest period. That's up from adjusted profit of 27 cents a year ago.

Revenue rose slightly to $120.4 million from $119 million a year ago, as demand increased within its U.S. federal and business segments.

Analysts polled by Thomson Reuters, who generally exclude one-time items, expected a profit of 26 cents per share on revenue of $120.1 million.

For the third quarter, the company currently projects adjusted income of 31 cents to 36 cents per share on $121 million to $126 million in sales. That would top Wall Street's average forecast for profit of 30 cents per share and sales of $125 million.

Shares fell 43 cents to close at $25.67.