Aruba Networks reports record quarterly revenues
Wireless LAN vendor Aruba Networks reported another quarterly loss, slightly smaller than a year ago, but its third-quarter adjusted earnings were slightly better than analysts expected, and it set a record for revenues.
For the third quarter ending April 30, Aruba reported record quarterly revenues of $69 million, a jump of 51% compared to the same quarter last year. The GAAP quarterly net loss was $5.3 million, or 6 cents per share, compared to a net loss of $5.8 million, or 7 cents per share, a year ago. The quarterly revenues were up sequentially 10% compared to Q2.
Excluding a range of items, the company actually earned 8 cents a share. Analysts were expecting earnings of 7 cents per share, excluding various items on revenues of $65.5 million, according to a Reuters report based on data from Thomson Reuters I/B/E/S.
The revenues were up as the company added 700 new customers, to a total of over 10,000. The company said that adoption of high-throughput 802.11n equipment is accelerating and that customers continue to "divert budgets from wired LANs toward wireless solutions."
The company just announced a deal to acquire an outdoor Wi-Fi mesh vendor, China-based Azalea Networks, for $40 million.
Aruba's stock price has been steadily rising over the past year from a low of $4.91 a year ago, to a recent high on April 14 of $13.89. It closed Wednesday at $11.57.
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