SUNNYVALE, Calif. (AP) — Blue Coat Systems Inc. said Thursday that that its fiscal second-quarter profit fell 62 percent as demand dipped for its Internet security products. The company’s results and outlook, however, were well ahead of analyst expectations and its shares rose 20 percent in after-hours trading.
The company earned $4.6 million, or 10 cents per share, for the quarter that ended Oct. 31. This compares with $12 million, or 25 cents per share, in the year-ago quarter.
Excluding one-time items, Blue Coat earned 20 cents per share. Analysts polled by FactSet expected 13 cents per share.
Revenue fell 6 percent to $114 million from $121 million a year earlier. Analysts expected $106 million in revenue.
Blue Coat said its product revenue, which makes up the majority of its sales, declined 15 percent to $62.3 million, while service revenue rose 8 percent to $51.8 million.
For the quarter that ends Jan. 31, Blue Coat predicted net income of 5 to 13 cents per share — or 19 to 26 cents per share excluding one-time items — on $113 million to $120 million in revenue.
Analysts are looking for adjusted net income of 16 cents per share on nearly $109 million in revenue.
Blue Coat shares rose $3.41 to $20.32 in after-hours trading. The stock finished regular trading up $1.14, or 7.2 percent, at $16.91.