Gigamon Posts Adj. Profit In Q4, Revenues Surge

(RTTNews) - Gigamon Inc. (GIMO), a provider of communications network hardware that analyze and manage network traffic, on Tuesday reported a loss for the fourth quarter, as strong revenue growth and higher margins were more than offset by higher expenses.

However, excluding items, the company reported an adjusted profit for the quarter. The company's shares gained almost 7 percent in extended trades.

The California-based company's net loss for the fourth quarter was $88 thousand or $0.00 per share, compared to net income of $2.09 million or $0.12 per share in the same period last year. The latest quarter's results include stock-based compensation expenses of $0.23 per share.

Excluding items, adjusted earnings for the quarter were $5.97 million or $0.18 per share, compared to $4.92 million or $0.28 per share in the year-ago quarter. The latest quarter's results include higher number of weighted-average shares.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 35 percent to $43.09 million from $31.85 million in the same period last year. Analysts had a consensus revenue estimate of $41.98 million.

Product revenue for the quarter increased 34 percent to $31.70 million, while service revenue rose 40 percent to $11.39 million.

Gross margin for the quarter was 80 percent, compared to 79 percent in the year-ago period.

Total operating expenses for the quarter were $33.03 million, up from $21.37 million in the year-ago period.

For fiscal 2013, Gigamon's net loss was $9.52 million or $0.39 per share, compared to net income of $3.61 million or $0.21 per share in the previous year. Adjusted net income was $15.89 million or $0.53 per share, compared to $11.13 million or $0.62 per share last year.

Revenues for the year grew 45 percent to $140.30 million from $96.72 million in the prior year.

Street expected the company to earn $0.45 per share for the year on revenues of $139.22 million.

GIMO closed Tuesday's regular trading session at $31.29, up $1.46 or 4.89 percent on a volume of 480,108 shares. In after-hours, the stock further gained $2.14 or 6.84 percent to $33.43.

GIMO closed Tuesday's regular trading session at $31.29, up $1.46 or 4.89 percent on a volume of 480,108 shares. In after-hours, the stock further gained $2.14 or 6.84 percent to $33.43.