Reuters: Technology News: SolarWinds forecasts second quarter below estimates

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SolarWinds forecasts second quarter below estimates Apr 30th 2013, 22:46 Tue Apr 30, 2013 6:46pm EDT (Reuters) - SolarWinds Inc's first-quarter revenue missed analysts' estimates and the network management software maker forecast current-quarter results below expectations as it struggles to sell new licenses. SolarWinds shares fell as much as 10 percent in extended trading. The company's core products are used by IT professionals and teams in companies to configure, monitor and report on the health and performance of their network, systems, and application infrastructure. SolarWinds expects second-quarter adjusted earnings in the range of 37 cents to 38 cents per share on revenue of $77.8 million to $78.8 million. Analysts were expecting adjusted earnings of 39 cents a share and revenue of $80.7 million, according to Thomson Reuters I/B/E/S. Net income rose 34 percent to $22 million, or 30 cents a share, in the first quarter from a year earlier. Excluding items, SolarWinds earned 41 cents per share. Revenue rose 22 percent to $72.9 million. Chief Executive Kevin Thompson said that several of the company's core products did not translate into the level of new license sales as it had expected. "We did not deliver the level of new license sales and total revenue growth we expected for the first quarter," Thompson said in a statement. New license sales of core products represented more than 85 percent of the company's license revenue for 2012. License revenue increased 12 percent to $30.7 million. Analysts had expected an adjusted profit of 37 cents a share, and revenue of $75.6 million. SolarWinds shares closed at $50.85 on Tuesday on the New York Stock Exchange. They were down at $47.00 after hours. (Reporting By Aurindom Mukherjee in Bangalore; Editing by Maju Samuel) Link this Share this Digg this Email Reprints

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