Qualys Shares Shatter On Slow Sales; Cybersecurity Names Feeling The Pain

Qualys Inc (NASDAQ: QLYS) tumbled about 26 percent Tuesday after the cloud security company cut its outlook on slower-than expected sales.

The Redwood City, California-based company traded recently at $39.21, down $15.87.

Other names appear to be moving as well; FireEye Inc (NASDAQ: FEYE) is down just over 2 percent, while Palo Alto Networks Inc (NYSE: PANW) and Barracuda Networks Inc (NYSE: CUDA) fell by a larger margin.

The PureFunds ISE Cyber Security ETF (NYSE: HACK) is down by nearly 3 percent in Tuesday morning trading.

Late Monday, Qualys' Chief Financial Donald C. McCauley cut his forecast for the company's 2015 revenue growth to 24 percent, from 26 percent, but left his earnings projection unchanged.

Related Link: 30 Cybersecurity Stocks In A Dangerous Digital World

"We will be able to effectively manage costs and leverage the strength of our platform," McCauley said.

Qualys now expects 2015 revenue of $165 million to $166.5 million, down from its earlier projection of $167.3 million to $169.3 million. It maintained a forecast for adjusted earnings of $0.50 to $0.55 cents a share.

Wall Street expected profit of $0.53 cents a share, on revenue of $168.4 million.

McCauley told investors that growth in Qualy's core "vulnerability management" business slowed in the first quarter to 19 percent, from 20 percent in the preceding period.

The company posted first-quarter adjusted income of $0.15 cents a share, up from $0.05 cents a year earlier.

Revenues for the first quarter of 2015 increased by 24 percent to $37.5 million, from $30.4 million a year earlier.

Analysts expected income of $0.11 cents a share, on revenue of $38 million.