BWI: Aruba Networks Revenues Increase 8% year-over-year for Fiscal Third Quarter of 2009

Press release from Business Wire India
Source: Aruba Networks
Tuesday, June 09, 2009 11:00 AM IST (05:30 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Financial Analyst, Information technology, Stock exchanges, Telecommunications; Technology
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Aruba Networks Revenues Increase 8% year-over-year for Fiscal Third Quarter of 2009


Bangalore, Karnataka, India, Tuesday, June 09, 2009 -- (Business Wire India) -- - Company Adds Over 500 New Customers in Q3

- Total Customer Count Now Exceeds 7,000

Aruba Networks, Inc. (NASDAQ: ARUN), a global leader in wireless LANs and secure mobility solutions, today released financial results for its fiscal third quarter ended April 30, 2009.

Revenues for the fiscal third quarter of 2009 were $45.8 million, an increase of 8% over the $42.6 million reported in the fiscal third quarter of 2008. GAAP net loss for the fiscal third quarter of 2009 was $5.8 million, or $0.07 per share, compared to a net loss of $6.2 million, or $0.08 per share, in the fiscal third quarter of 2008. GAAP results for the fiscal third quarter of 2009 included $5.5 million of non-cash stockbased expenses and $1.2 million of amortization expense of acquired intangible assets.

Non-GAAP net income for the fiscal third quarter of 2009 increased $2.1 million from the fiscal third quarter of 2008 to $1.0 million, or $0.01 per share. Non-GAAP net income for these periods excludes the impact of non-cash stock-based expenses and amortization expense of acquired intangible assets in all periods and, for the fiscal third quarter of 2008, acquisition related severance expense.

"In the third quarter we achieved 8% year-over-year revenue growth and won a number of large customers which should continue to benefit our results in coming quarters," said Dominic Orr, president and chief executive officer of Aruba. "Demand was driven by both existing customers and the addition of more than 500 new customers, across a broad range of industries. In this difficult economic environment, enterprises and organizations are rethinking their current IT infrastructure and we believe that wireless will increasingly be used as a replacement for and/or cost-saving complement to wired networks. We believe Aruba Networks offers both existing and potential customers the lowest total cost of ownership, fully integrated security and proven scalability with some of the world's largest organizations."

"Sales were solid across all of our geographies," said Steffan Tomlinson, Aruba's chief financial officer. "We were pleased to have increased our operating leverage, as we reduced operating expenses in both actual dollars and as a percentage of sales from the immediately preceding quarter and the same period last year. We enter our fourth fiscal quarter with improved visibility from the prior quarter and $111.8 million of cash and short term investments, with no debt."

Recent Highlights

Highlights from the quarter include:

- Positioned in the Gartner Magic Quadrant as a Leader - Aruba was again positioned in the Leaders Quadrant in the 2008 Magic Quadrant for Wireless LAN Infrastructure.

- Awards - Aruba won numerous awards during the quarter including Network World's "Best of the Tests" award (AirWave Wireless Management Suite), Unified Communications Magazine's "2008 Product of the Year" award (Remote Access Point technology), Network Computing's "Wireless Infrastructure Product of the Year" award (802.11n access points), and Verizon's 2008 Supplier Excellence Award for IT Products.

- Product Development - Aruba announced three Real-Time Location Systems (RTLS) for tracking assets, devices, and Wi-Fi tags within a facility, lowering operating and deployment costs.

- Wins and Deployments - New customer wins and/or deployments included Ithaca College, Universitas Telefonica, MultiCare Health System, Raytown C-2 School District, Norwood School, Boston Medical Center, Liberty University, Glenelg Country School, University of Tokyo, and the New South Wales Department of Education and Training.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP net income and non-GAAP earnings per share (EPS). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Non-GAAP net income and EPS. Aruba defines non-GAAP net income as net income plus stock-based expenses, amortization expense of acquired intangible assets, restructuring expenses (for the nine months ended April 30, 2009 only), acquisition related severance expense (for the three and nine months ended April 30, 2008 only), and, a benefit related to the revaluation of warrants to fair value (for the nine months ended April 30, 2008 only). Aruba defines non-GAAP EPS as non-GAAP net income divided by the weighted average diluted shares outstanding. Aruba's management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the company's performance by excluding certain expenses that may not be indicative of Aruba's "recurring operating results," meaning its operating performance excluding not only non-cash charges, such as stock-based expenses, but also discrete cash charges that are infrequent in nature, such as restructuring and severance expenses. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FAS 123R, Aruba's management believes that providing non-GAAP financial measures that exclude stock-based expenses allows investors to compare these results with those of other companies, as well as providing management with an important tool for financial and operational decision making and for evaluating the company's operating results over different periods of time. Similarly, by excluding amortization expense of acquired intangible assets, restructuring expenses, severance expense and the benefit related to the revaluation of warrants to fair value, Aruba's management believes that investors can better understand and measure the Company's recurring operating results.

There are a number of limitations related to the use of non-GAAP net income and EPS versus net income and EPS calculated in accordance with GAAP. First, these non-GAAP financial measures exclude some costs, namely, stock-based expenses, that are recurring. Stock-based expenses have been and will continue to be for the foreseeable future a significant recurring expense in Aruba's business. Second, stock-based awards are an important part of Aruba's employees' compensation and impacts their performance. Third, the components of the costs that Aruba excludes in its calculation of non-GAAP net income may differ from the components that its peer companies exclude when they report their results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their most directly comparable financial measures calculated in accordance with GAAP. The accompanying tables have more details on these non-GAAP financial measures, including reconciliations between these financial measures and their most directly comparable GAAP equivalents.

A copy of this press release can be found on the investor relations page of Aruba Networks' Web site at www.arubanetworks.com.

About Aruba Networks

People move. Networks must follow. Aruba securely delivers networks to users, wherever they work or roam. Our mobility solutions enable the Follow-Me Enterprise that moves in lock-step with users:

- Adaptive 802.11a/b/g/n Wi-Fi networks optimize themselves to ensure that users are always within reach of mission-critical information;

- Identity-based security assigns access policies to users, enforcing those policies whenever and wherever a network is accessed;

- Remote networking solutions ensure uninterrupted access to applications as users move;

- Multi-vendor network management provides a single point of control while managing both legacy and new wireless networks from Aruba and its competitors.

The cost, convenience, and security benefits of our secure mobility solutions are fundamentally changing how and where we work. Listed on the NASDAQ and Russell 2000 Index, Aruba is based in Sunnyvale, California, and has operations throughout the Americas, Europe, Middle East, and Asia Pacific regions. To learn more, visit Aruba at http://www.arubanetworks.com. For real-time news updates follow Aruba on Twitter at http://twitter.com/ArubaNetworks.


CONTACT DETAILS
Judith Tse, Aruba Networks Asia Pacific, +852 3405 6300, jtse@arubanetworks.com

KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, Financial Analyst, IT, STOCK EXCHANGES, TELECOMMUNICATIONS, TECHNOLOGY

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