- Infoblox (BLOX -39.9%) has received 5 downgrades after offering soft guidance (again) to go with mixed FQ3 results, and announcing long-time CEO Robert Thomas is leaving once a successor is named.
- "While large customers, partners and field contacts remain positive on Infoblox’s technology, it has become clear there is not a quick and easy fix for the sharp slowdown in product orders that began last October," writes Pac Crest, cutting shares to Sector Perform.
- Goldman (downgrade to Neutral) does a mea culpa for its February upgrade. It doesn't expect product rev. growth to re-accelerate in the near-term, given the CEO transition and a belief Infoblox is too focused on a "still-nascent security opportunity."
- The firm also notes there was an "elevated level of concern" on the CC (transcript) about competition from Microsoft, which is integrating more IP address management/DNS features into Windows Server.
- Thomas admitted Microsoft's price (or lack thereof) will intrigue some clients. "There's no doubt that when it's installed on a box for free, the customer is going to look at it a bit more closely." But he insisted Infoblox's rich feature set - "They don't have anything like the Grid, for example. They don't have a single management platform." - will help it win deals.