IPO Preview: Infoblox
April 19, 2012 | about: BLOX, includes: ADBE, ALU, BA, BBY, BCS, BMC, CAT, DGX, EMC, HPQ, IBM, RY,SPLS, TRI, VOD
Based in Santa Clara, California Infoblox (proposed BLOX) scheduled a $98 million IPO with a market capitalization of $572 million at a price range mid-point of $13 for Friday, April 20, 2012. [S-1]
Manager, Joint Managers: Morgan Stanley; Goldman; UBS.
SUMMARY
BLOX is a leader in automated network control and provide an appliance-based solution that enables dynamic networks and next-generation data centers.
BLOX is a leader in automated network control and provide an appliance-based solution that enables dynamic networks and next-generation data centers.
BLOX was founded in 1999 and, since that time, has expended more than $186.0 million in creating a solution
SEASONAL
The second and fourth quarters of each fiscal year in general have greater product revenue than the first and third fiscal quarters.
The second and fourth quarters of each fiscal year in general have greater product revenue than the first and third fiscal quarters.
But the January 2012 quarter was up only 5% over the September 2011 quarter.
VALUATION & RECOMMENDATION
3.5 sales for a money losing company who revenue growth may be sputtering seems like too high a risk.
3.5 sales for a money losing company who revenue growth may be sputtering seems like too high a risk.
Yet, BLOX is in a hot sector & should go up on the IPO. Our recommendation in this market is to take those profits if possible if you like the IPO sector.
BUSINESS
BLOX is a leader in automated network control and provide an appliance-based solution that enables dynamic networks and next-generation data centers.
BLOX is a leader in automated network control and provide an appliance-based solution that enables dynamic networks and next-generation data centers.
BLOX was founded in 1999 and, since that time, has expended more than $186.0 million in creating a solution that combines real-time IP address management with the automation of key network control and network change and configuration management processes.
The BLOX solution combines real-time IP address management with the automation of key network control and network change and configuration management processes in purpose-built physical and virtual appliances. It's based on BLOX's proprietary software that is highly scalable and automates vital network functions, such as IP address management, device configuration, compliance, network discovery, policy implementation, security and monitoring.
The BLOX solution allows end customers to create dynamic networks, address burgeoning growth in the number of network-connected devices and applications, manage complex networks efficiently and capture more fully the value from virtualization and cloud computing.
REVENUE
BLOX generates products and licenses revenue primarily from sales of perpetual licenses to software installed on physical and virtual appliances.
BLOX generates products and licenses revenue primarily from sales of perpetual licenses to software installed on physical and virtual appliances.
In 2011 and for the six months ended January 31, 2012, services (maintenance & support) revenue was 39.6% and 42.7% of net revenue.
DISTRIBUTION
BLOX sells its integrated appliance and software solution primarily through channel partners to end customers of various sizes and across a wide range of industries.
BLOX sells its integrated appliance and software solution primarily through channel partners to end customers of various sizes and across a wide range of industries.
BLOX appliances have been sold to more than 5,400 end customers, including Adobe (ADBE), Barclays (BCS), Best Buy (BBY), Boeing (BA), Caterpillar (CAT), the Federal Aviation Administration, IBM (IBM), Johnson & Johnson (JNJ), KDDI, Quest Diagnostics (DGX), Reuters (TRI), the Royal Bank of Canada (RY), Staples (SPLS), TIMPO, U.S. Customs and Border Protection and Vodafone (VOD).
Channel partners
In 2009, 2010 and 2011 and during the six months ended January 31, 2011 and 2012, a significant majority of BLOX's net revenue was generated from sales through channel partners, including third-party distributors, integrators, managed service providers and value-added resellers, or VARs, that market or sell networking equipment, software and other products and services to end customers.
In 2009, 2010 and 2011 and during the six months ended January 31, 2011 and 2012, a significant majority of BLOX's net revenue was generated from sales through channel partners, including third-party distributors, integrators, managed service providers and value-added resellers, or VARs, that market or sell networking equipment, software and other products and services to end customers.
INTERNATIONAL SALES
During 2010 and 2011 and the six months ended January 31, 2011 and 2012, 41.0%, 41.5%, 43.6% and 43.0% of BLOX's net revenue, respectively, was derived from customers outside of the United States.
During 2010 and 2011 and the six months ended January 31, 2011 and 2012, 41.0%, 41.5%, 43.6% and 43.0% of BLOX's net revenue, respectively, was derived from customers outside of the United States.
SEASONALITY
The second and fourth quarters of each fiscal year in general have greater product revenue than the first and third fiscal quarters.
The second and fourth quarters of each fiscal year in general have greater product revenue than the first and third fiscal quarters.
INTELLECTUAL PROPERTY
As of January 31, 2012, BLOX had 16 patents issued in the United States, which expire between October 15, 2018 and September 27, 2027. BLOX also had 22 patent applications pending for examination in the United States and 3 patent applications pending for examination in foreign jurisdictions, all of which are related to U.S. applications.
As of January 31, 2012, BLOX had 16 patents issued in the United States, which expire between October 15, 2018 and September 27, 2027. BLOX also had 22 patent applications pending for examination in the United States and 3 patent applications pending for examination in foreign jurisdictions, all of which are related to U.S. applications.
COMPETITION
BLOX competes with large technology integrators, such as BMC Software (BMC), EMC (EMC), Hewlett-Packard (HPQ) and International Business Machines , telecommunication equipment providers, such as Alcatel-Lucent (ALU) and BT Group plc, and specialized technology providers, such as BlueCat Networks, Inc., EfficientIP SAS and Nominum, Inc.
BLOX competes with large technology integrators, such as BMC Software (BMC), EMC (EMC), Hewlett-Packard (HPQ) and International Business Machines , telecommunication equipment providers, such as Alcatel-Lucent (ALU) and BT Group plc, and specialized technology providers, such as BlueCat Networks, Inc., EfficientIP SAS and Nominum, Inc.
USE OF PROCEEDS
BLOX expects to net $65 million from the sale of 5.74 million shares. Shareholders expect to sell 1.76 million shares.
BLOX expects to net $65 million from the sale of 5.74 million shares. Shareholders expect to sell 1.76 million shares.
By IPOdesktop
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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