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TMCNet: Aruba Networks Reports 4Q Financial Results

[September 02, 2010]

Aruba Networks Reports 4Q Financial Results

Sep 02, 2010 (Close-Up Media via COMTEX) -- Aruba Networks, a provider of distributed enterprise network solutions, recently released financial results for its fiscal fourth quarter and full year ended July 31.

In a release dated Aug. 26, the Company said revenues for Q4'10 were $77.3 million, an increase of 45 percent from the $53.3 million reported in Q4'09. GAAP net income for Q4'10 was $0.4 million, or $0.00 per share, compared to a net loss of $4.5 million, or $0.05 per share, in Q4'09.

Non-GAAP net income for Q4'10 was $11.1 million, or $0.10 per share. This compares to net income of $3.2 million or $0.03 per share in Q4'09. A reconciliation between GAAP and non-GAAP information is contained in the tables below.

Revenues for the fiscal year ended July 31, were approximately $266.5 million, an increase of 34 percent from $199.3 million reported in the prior fiscal year. GAAP net loss for FY 2010 was $34.0 million, or $0.38 per share, compared to a net loss of $23.4 million, or $0.28 per share in FY 2009. Non-GAAP net income for FY 2010 was $30.0 million, or $0.29 per share, compared to non-GAAP net income of $7.6 million, or $0.08 per share in FY 2009.

"Robust demand from a broad cross section of industries and verticals drove sharp revenue growth in the quarter," said Dominic Orr, President and Chief Executive Officer of Aruba. "The rapid growth in our revenues and customer base has been enabled by investments in our field sales organizations and R&D infrastructure, which have greatly increased our geographic reach and new market opportunities. We will continue to make these investments in the future, while demonstrating operating leverage in our model. The proliferation of wireless-enabled laptops, smart phones, and other mobile devices in the enterprise is transforming networks, and customers are increasingly adopting a 'wireless where you can, wired where you must' stance in their network infrastructure. Building on the rapidly growing customer demand for 802.11n, traction with our rightsizing and VBN (Virtual Branch Networking) initiatives is accelerating, helping us to add a record 900+ new customers during the quarter." "Profitability in the fourth quarter was driven by strong revenue growth, product mix, and prudent investments, as operating profit more than tripled over the fiscal fourth quarter in the prior year," said Steffan Tomlinson, Aruba's Chief Financial Officer. "We intend to further leverage our distribution channel to capitalize on these positive trends and sales momentum. As part of this effort, we announced an OEM agreement with Dell last week which we believe will complement our existing OEM and distribution partnerships to further expand our global sales footprint. Our balance sheet remains strong, as we generated cash flow from operations of $10.4 million and $25.8 million in the fiscal fourth quarter and fiscal 2010, respectively. We ended the quarter with $155.4 million in cash and short term investments, an increase of $32.3 million compared to the end of the fiscal fourth quarter in fiscal 2009, and no debt." Recent Highlights Recent highlights include: -OEM Agreement with Dell - Aruba announced an OEM agreement with Dell to deliver its secure mobility solutions to large enterprises, mid-market, healthcare, education and government markets under Dell's "PowerConnect W-Series Powered by Aruba Networks" brand.

-Single-Radio 802.11n Access Points - Aruba introduced two compact, single-radio 802.11n access points, the entry-level AP-92 and AP-93. Priced lower than many legacy 802.11abg access points, the new access points are covered by Aruba's limited lifetime warranty and can be configured to provide 802.11n Wi-Fi access, spectrum analysis, remote networking, indoor mesh, or wireless intrusion prevention over the 2.4GHz and 5GHz RF spectrum.

-New Customers - New customers for the quarter were spread across a range of industries and included: healthcare-related institutions such as LRGHealthcare, Milford Regional Medical Center, and Westminster Canterbury Richmond; educational institutions such as Indus International Schools, Khon Kaen University Faculty of Medicine, and Acharya Institutes; retailer Zander Group; and Xiamen Airlines.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

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