Central Texas Digest:
SolarWinds income rises, but outlook is dimmer; Garriott-NCsoft set to square off; T-Mobile revs up local network
Shares of Austin-based SolarWinds Inc. fell sharply in extended trading after the network management software company provided a weak outlook for its third quarter and full year.
The company reported second-quarter revenue of $35.5 million, up 31 percent from a year earlier, and profit of $8.8 million, up 30.7 percent.
But the company noted a “higher level of uncertainty” on sales to the federal government and a softening market in Europe. It forecast thirdquarter revenue of $35 million to $37 million, below analysts’ expectations.
The company also lowered its full-year outlook.
SolarWinds’ shares closed at $16.52, down 3.3 percent, in regular trading but fell another 9.2 percent in extended trading after the report.