Blue Coat Systems Posts Profit For Fiscal 1Q

SUNNYVALE, Calif. (AP) ¿ Blue Coat Systems Inc. on Tuesday reported a profit for its fiscal first quarter of 2010 compared with a loss in the year-earlier period, when charges tied to an acquisition weighed down results.

The security hardware and software maker posted a profit of $4 million, or 9 cents per share, for the three months ended July 31, compared with a loss of $6 million, or 15 cents per share, in the first quarter of fiscal 2009.

Excluding special items, Blue Coat's net income rose to $10 million, or 23 cents per share, compared with profit of $7 million, or 16 cents per share, in the same period in fiscal 2009.

Adjusted net income excludes charges related to acquired inventory sold, stock-based compensation expense, amortization of intangible assets, expenses for matters related to a stock option investigation and restructuring costs, among other items.

Those charges include items linked to Blue Coat's acquisition of Packeteer, which makes products that help companies monitor and control traffic flowing across their networks.

Net revenue rose 13 percent to $116 million from $103 million.

Analysts surveyed by Thomson Reuters, on average, expected a profit of 22 cents per share on revenue of $115.8 million. Those estimates typically exclude special items.

"Going forward, we intend to improve operating efficiencies across all areas of the company, while also funding critically important initiatives," Brian NeSmith, the company's president and CEO, said in a statement.

For the second quarter, Blue Coat expects net income of 8 cents to 14 cents per share on revenue of $116 million to $121 million. Analysts predict a profit of 24 cents per share on revenue of $120 million.

The company's shares climbed $1.12, or 6.5 percent, to $18.38 in after-hours trading. During the regular session, they slid 3 cents to close at $17.26.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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