Ahead Of The Bell: Blue Coat Shares Climb

NEW YORK (AP) — Shares of Blue Coat Systems Inc. jumped ahead of regular trading Wednesday, a day after the security hardware and software maker beat Street projections for fiscal first-quarter results.

Shares climbed $1.32, or 7.6 percent, to $18.58 in premarket trading.

The Sunnyvale, Calif., company said late Tuesday it reversed a year-earlier loss with slightly better-than-expected revenue and cost controls.

Despite slow information technology spending, Blue Coat "did a commendable job" getting new deals signed during the quarter, FBR Capital Markets analyst Daniel Ives said in a note, "a positive dynamic that should help investors sleep a little better at night."

He raised his price target to $16 from $14 and reiterated a "Market Perform" rating.

Blue Coat's adjusted earnings totaled 23 cents per share, compared with an average forecast from analysts of 22 cents, according to Thomson Reuters. Sales came to $116 million, just ahead of the $115.8 million analysts predicted.