Aruba reports Q3 revenues up, net loss narrows

IDG News Service — Fri, 22 May 2009 11:24:55 -0400

Aruba Networks yesterday reported third quarter results, with revenues increasing by 8% to $45.8 million compared to $42.6 million a year ago.

The wireless LAN vendor reduced its net loss to $5.8 million or $0.07 per share, compared to $6.2 million or $0.08 per share a year ago. The results included $5.5 million of non-cash, stock-based expenses, and $1.2 million of amortization expense of acquired intangible assets.

Excluding these, and acquisition-related severance expense, non-GAAP net income for the quarter increased $2.1 million to a positive total of $1.0 million compared to the 2009 third fiscal quarter.

In January, the Sunnyvale, California vendor acquired AirWave, and the AirWave WLAN network management application suite.

The share price closed yesterday at $5.14 per share. Over the past year, Aruba’s stock price has ranged from $1.85 to 6.87 per share. Over the past three months, it’s risen steadily from $2.64 per share.

Aruba www.arubanetworks.com offers wireless LAN access points, controllers, and network and radio frequency management applications. The company said it signed “more than 500” new customers in the just-completed third fiscal quarter, in a broad range of industry segments, including education, government, and telecommunications.

Earlier this week, it announced new products designed for low-cost, simple, but enterprise-grade WLANs at branch offices, potentially a substantial market.

In a statement, Aruba CFO Steffan Tomlinson said the company “reduced operating expenses in both actual dollars and as a percentage of sales” from both the prior quarter and the same quarter last year. The company has $112 million in cash and short-term investments, and no debt.