Dallas, Texas 07/10/2015 (Financialstrend) – Barracuda Networks Inc (NYSE:CUDA) posted a net loss of $3.8 million for the first quarter but still beat the Street’s estimates. The stock was tumbling in aftermarket trading after raising concerns that its storage business continues to face challenges on declining customer demand. Excluding stock-based compensation and acquisition costs, the company generated an earnings per share of 9 cents.
Improvement in Selling Capacity
The company did not sign as many large and lengthy storage deals in the quarter compared to the fourth quarter as custo8iimers opted to buy virtual and cloud products. However, at the end of the quarter Barracuda Networks Inc (NYSE:CUDA) signed some big storage contracts expected to be accretive of Q2 earnings.
CEO, William Jenkins, expects the company’s selling capacity to improve in the second quarter especially on signing a distribution agreement with Tech Data. The agreement should make the company’s product available to a wider market across the US by the use of Tech Data’s advanced infrastructure Solutions division.
Barracuda Networks Inc (NYSE:CUDA) products are used to give remote users secure access to internal network resources regardless of the web browser that one might be using. The company also sells content and storage security software as well as appliances to small and midsized companies.
Just like other companies with revenue streams abroad, Barracuda Networks Inc (NYSE:CUDA) continues to feel the effects of a strengthened dollar that continues to affect revenues generated abroad. For the second quarter, the company expects to generate 9 cents on earnings per share on revenues of between $78 million and $79 million. Against analysts forecasts of 9 cents a share on $80.5 million in revenues.
During the quarter, Barracuda Networks Inc (NYSE:CUDA) increased its public cloud momentum by enhancing networking and application security capabilities to support Microsoft Azure enhancements. The company also unveiled a new Load Balancer FDC that delivers 40Gbps during load balancing having expanded its market share on being listed as number one for total integrated PBBA units sold in IDCs Worldwide.