In the 21st century version of the Wild West, the villain is
not a gunslinger with a black hat, but a tech wizard sitting
behind a keyboard trying to wreak havoc on computer systems.
You don't hail the sheriff and his posse to combat
cybervillains. You contact companies that specialize in solutions
that help clients secure their systems and networks.
One such company,Infoblox (
), has seen a steady rise in business thanks to increasing demand
for its automated network control solutions.
Infoblox provides a range of information technology products
and services, from communications network appliances that manage
Internet addresses to solutions that help network administrators
identify and control different types of devices on the
The company's appliances are designed to help IT departments
manage complex, related group of technologies that fall under the
umbrella of "DDI." That stands for DNS, or domain name system;
DHCP, or dynamic host configuration protocol; and IPAM, or
Internet protocol address management.
Customers call on Infoblox to help them better manage
connected devices and online traffic and to battle the
increasingly sophisticated nature of security attacks.
These tools are becoming more important as companies look to
get a better handle on large and complex systems. Infoblox has
established itself as a leader in helping them do so.
"The company has built a strong technical lead in the IP
Address Management (IPAM) market, along with a diverse business
model," Alex Kurtz, analyst at Sterne Agee, noted in a recent
report initiating coverage on Infoblox.
IT departments have traditionally managed their Internet
addresses with their own tools or by using softwareMicrosoft (
) provides for database servers. Infoblox also competes against
network appliance sellers BlueCat Networks,BT Group (
) andAlcatel-Lucent (
Infoblox has responded to increasing demand by continuing to
roll out new solutions designed to help customers protect
themselves from security threats.
In June, the company introduced solutions that help IT teams
gain better visibility and control over their network security.
One offering, the Infoblox DNS Firewall, is a malware protection
solution now available on its carrier-grade 4030 DNS Caching
In addition, Infoblox introduced new DHCP Fingerprinting
technology designed to help network administrators identify and
control the device types that are on the network without the need
for network discovery or on-device agents.
The Infoblox DHCP Fingerprinting technology lets network
administrators see device type information, such as iOS or
Android devices or a Linksys router, for all DHCP connected
devices on their networks. They can then take action or create
policies based on the device type.
These kinds of products play into the desire on the part of
network administrators and others to exert more control over
"Customers are increasingly recognizing the mission-critical
importance of DNS/DCHP, and are recognizing the need for a
bulletproof management and security system for these assets,"
Needham & Co. analyst Alex Henderson noted following
Infoblox's fiscal third quarter earnings report.
Rising demand for Infoblox's technology and solutions is
evident in its recent financial growth. During the first three
quarters of fiscal 2013, which ended in July, the company grew
quarterly sales at least 26%. It also rang up strong earnings
During its fiscal third quarter ended in April, Infoblox
posted earnings of 11 cents a share, up from 5 cents the prior
year and a nickel above consensus analyst views. Revenue gained
34% to $58 million, topping estimates for $56 million.
Product revenue in the quarter was $33.6 million, up 37% from
a year earlier and 58% of total revenue. Service and support
revenue came in at $24.4 million, up 30% from the prior year and
42% of total revenue.
Infoblox gets about two-thirds of its revenue from the
Americas. Another 23% comes from Europe, the Middle East and
Africa. The rest comes from the Asia-Pacific region.
The company's strong recent financial performance comes
despite concerns that weakness in China will slow overall IT
Infoblox officials addressed those concerns in a fiscal Q3
conference call with analysts, though they also sounded upbeat
about the company's prospects.
"We're clearly aware of the concerns on the economy and its
impact on overall IT spending," Chief Financial Officer Remo
Canessa said. "While we're not taking these concerns lightly, we
believe that the compelling value proposition from our automated
network control solution places Infoblox in a position where it
can deliver continued growth."
One thing working in Infoblox's favor is that the company is
still in the early stages of adoption for its core DDI
"As the market matures and DDI solutions become a key part of
IT budgets, and Infoblox's security products resonate in the
market, we should start to see greater demand-pull and potential
revenue acceleration," UBS analyst Amitabh PassiPassi noted.
Wall Street seems pretty upbeat about Infoblox's growth
prospects. The company's stock price touched a record high of
33.23 on July 30. Shares have more than doubled since debuting at
16 in April 2012.
Infoblox is due to report fiscal Q4 results in early
September. Analysts polled by Thomson Reuters expect earnings of
9 cents a share, up from 1 cent the previous year.