Aruba Networks Q4 Loss Narrows - Update

(RTTNews) - Wireless-network equipment maker Aruba Networks Inc. (ARUN), Tuesday reported its fourth quarter loss narrowed from a year ago, due mainly to a 33 percent surge in revenues.

Dominic Orr, Chief Executive Officer, Aruba observed, "We are pleased to report strong fourth quarter results, capping a year of significant progress across our key strategic and operational initiatives."

Orr added that the company achieved significant market share gains, supported by the continued ramp up of its full line of 802.11ac access points as well as strong Instant and Clear Pass sales.

Sunnyvale, California-based Aruba's fourth-quarter loss narrowed to $4.1 million or $0.04 per share from last year's loss of $15.6 million, or $0.14 per share.

Adjusted earnings for the quarter rose to $27.6 million or $0.24 per share from $15.8 million or $0.13 per share last year. On average, 32 analysts polled by Thomson Reuters expected earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.

Aruba's revenues for the fourth quarter rose 33 percent to $202.9 million from $153.1 million last year. Thirty analysts had a consensus revenue estimate of $194.85 million for the quarter.

Adjusted operating margin improved to 20.0 percent from 14.7 percent last year.

Michael Galvin, Chief Financial Officer said, "We delivered record revenues both in Q4 and fiscal 2014 and improved our non-GAAP operating margin by 530 basis points over the last four quarters.

Galvin added, "From this position of strength, we are announcing a cost optimization plan that will reduce certain positions, and shift other positions to lower-cost, talent-rich locations, providing the foundation for efficiently scaling the company with a global infrastructure. Based on these actions and our expectation of continued growth, we are raising our fiscal 2015 non-GAAP operating margin target to 21 to 22 percent."

ARUN closed Tuesday's trading at $20.24, up $0.15 or 0.75%, on the Nasdaq. The stock further gained $0.41 or 2.03% in after-hours trade.