Aruba Networks Reports 4Q Financial Results

Aruba Networks, a provider of wireless LANs and secure mobility solutions, released financial results for its fiscal fourth quarter and fiscal year ended July 31.

In a release dated August 27, the company stated:

- Revenues for the fiscal fourth quarter of 2009 were $53.3 million, an increase of 10.5 percent over the $48.3 million reported in the fiscal fourth quarter of 2008. GAAP net loss for the fiscal fourth quarter of 2009 improved to $4.5 million, or $0.05 per share, compared to a net loss of $6.8 million, or $0.08 per share, in the fiscal fourth quarter of 2008. GAAP results for the fiscal fourth quarter of 2009 included $6.4 million of non-cash stock-based expenses and $1.2 million of amortization expense of acquired intangible assets.

- Non-GAAP net income for the fiscal fourth quarter of 2009 increased $3.0 million from the fiscal fourth quarter of 2008 to $3.2 million, or $0.03 per share. Non-GAAP net income for these periods excludes the impact of non-cash stock-based expenses and amortization expenses of acquired intangible assets in all periods.

- Revenues for the fiscal year ended July 31, were approximately $199.3 million, an increase of 11.8 percent from $178.3 million reported in the prior year. GAAP net loss for the fiscal year 2009 was $23.4 million, or $0.28 per share, compared to a net loss of $17.1 million, or $0.22 per share in 2008. Non-GAAP net income for the fiscal year was $7.6 million, or $0.08 per share, compared to non-GAAP net income of $4.0 million, or $0.04 per share in 2008.

"We are pleased to report record revenues and double-digit, year-over-year revenue growth for our fiscal fourth quarter and year ended July 31," said Dominic Orr, president and chief executive officer of Aruba. "We believe that we are gaining market share and deriving significant traction from both new and existing customers despite challenging market conditions. During the quarter, we added over 600 new customers across a broad range of industries, most notably in the education, healthcare, and government verticals. We had strong bookings in the period and are encouraged by our growing pipeline for both our network rightsizing and newly introduced Virtual Branch Networking (VBN) solutions. Both of these opportunities have significant incremental growth potential because they leverage the convergence of customers' wired and wireless networks. The resulting reduction of operating and capital expenses is resonating with customers, bolstering our competitive position."

"In the fourth quarter, our strong top line performance, sequential improvement in gross margins and operating leverage enabled us to increase our operating margin and improve our bottom line results," said Steffan Tomlinson, Aruba's chief financial officer. "Due to strong bookings and record deferred revenues, our visibility has improved as we enter Q1 2010. During the quarter, short term deferred revenues increased by $10.0 million on a sequential basis to a record $34.7 million, and we generated a record cash flow of $11.4 million."

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