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What: Shares of Blue Coat Systems
So what: Lower guidance and executive departures were the culprits this time. Management reduced its expectations for Q4 revenue to a range of $120.5 million to $121.5 million, down from $121 to $128 million. Non-GAAP profit is due to come in between $0.30 and $0.31 a share, down from $0.32 to $0.38 a share. Brian NeSmith, who had been CEO before assuming the role of products chief, and David de Simone, senior VP of products and technology, will leave the company at the end of next month.
Now what: Blue Coat positioned the departures and lower outlook as the result of a sort of strategic review that resulted in the creation of three distinct product groups: Web Security, WAN Optimization, and Cloud Services. Maybe this is what Blue Coat needs, but seeing key rivals in core markets post outstanding earnings -- Riverbed Technology
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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. Riverbed Technology is a Rule Breakers recommendation. You can try any of our Foolish newsletter services free for 30 days.
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