Quest Software's 1st-qtr Results Miss Forecasts

ALISO VIEJO, Calif. (AP) — Quest Software Inc.'s first-quarter results missed Wall Street expectations, hurt by cautious IT spending from business customers.

Its shares fell $1.45, or 10.5 percent, to $12.49 in Tuesday morning trading, a day after the company reported results.

Quest, which makes database management software, posted earnings of $9.9 million, or 10 cents per share, compared with $13.3 million, or 13 cents per share, a year ago.

Stripping out one-time charges, Quest said it earned 22 cents per share, a penny shy of the average forecast from analysts, according to a Thomson Reuters poll. Some of the expenses were associated with Quest's stock-option investigation.

Quest said its customers are keeping a tight rein on their IT budgets and looking to maximize returns on their investments.

Revenue fell to 4 percent to $165.6 million, compared with the average estimate of $179 million.

In the first quarter "customers did not buy anything they did not feel absolutely compelled to buy right then," Chief Executive Doug Garn, told analysts on a conference call Monday.