Aruba Investor Relations
Founded in 2002, Aruba Networks is the leading provider of next-generation access management, network infrastructure and mobility application solutions for mobile enterprise networks.
Headquartered in Sunnyvale, California, Aruba has offices throughout the Americas, Asia-Pacific/Japan and Europe/Middle East/Africa regions. Aruba is listed on the NASDAQ and Russell 2000® Index. Follow Aruba on Twitter and Facebook or read our blogs.
|Aruba Networks Reports Record First Quarter 2011 Financial Results|
SUNNYVALE, Calif., Nov 17, 2010 (BUSINESS WIRE) -- Aruba Networks, Inc. (NASDAQ: ARUN), a global leader in distributed enterprise network solutions, today released financial results for its fiscal 2011 first quarter ended October 31, 2010.
Revenues for Q1'11 were $83.1 million, an increase of 44% from the $57.6 million reported in Q1'10. GAAP net income for Q1'11 was $2.1 million, or $0.02 per share, compared to a net loss of $24.7 million, or $0.28 per share, in Q1'10.
Non-GAAP net income for Q1'11 was $13.9 million, or $0.12 per share. This compares to $4.1 million or $0.04 per share in Q1'10. A reconciliation between GAAP and non-GAAP information is contained in the tables below.
"The proliferation of mobile devices, such as iPads, tablet devices and smart phones, continues to rapidly increase, forcing companies to reconsider their approach to the network edge," said Dominic Orr, President and Chief Executive Officer of Aruba. "With our user-centric architecture, industry-leading security and proven scalability, we believe Aruba is uniquely positioned to take advantage of these trends, as evidenced by our fiscal first quarter results. First quarter revenues increased 44% year-over-year and 8% sequentially, driven by strong demand from our existing customer base across all of our key verticals, as well as from new customers, over 800 of which we added in the first quarter alone. We were most encouraged by our enterprise business which showed particular strength in the quarter, while our core education, healthcare and government verticals continued to perform well."
"Revenues, net income and earnings per share were all at record levels," said Steffan Tomlinson, Aruba's Chief Financial Officer. "While we continue to show significant operating margin expansion, we also are making strong investments in our Sales and Marketing and R&D organizations, as we look to take advantage of multiple opportunities in the marketplace and innovate ahead of our competition. Our balance sheet remains strong, as we generated cash flow from operations of $16.0 million in Q1, with DSOs of 47 days."
Recent highlights include:
Conference Call Information
Aruba will host a conference call for analysts and investors to discuss its fiscal first quarter results today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). A live webcast of the conference call will also be accessible from the "Investor Relations" section of the Company's website at http://www.arubanetworks.com. Following the webcast, an archived version will be available on the website for twelve months. To hear the replay, parties in the United States and Canada should call 1-800-406-7325 and enter passcode 4382368. International parties can access the replay at +1-303-590-3030 and should enter passcode 4382368.
This press release contains forward-looking statements, including statements that proliferation of mobile devices will have a positive impact on our growth.
These forward-looking statements involve risks and uncertainties, as well as assumptions which, if they do not fully materialize or prove incorrect, could cause Aruba's results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: (1) our ability to react to trends and challenges in our business and the markets in which we operate; (2) business and economic conditions and growth trends in the networking industry, our vertical markets and various geographic regions; (3) changes in overall information technology spending; and (4) our ability to establish and maintain successful relationships with our partners including Honeywell; as well as those risks and uncertainties included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in Aruba's report on Form 10-K for the fiscal year ended July 31, 2010, which was filed with the SEC on September 24, 2010, and is available on Aruba's investor relations Web site at http://www.arubanetworks.com and on the SEC Web site at http://www.sec.gov. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.
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 and related payroll taxes, amortization expense of acquired intangible assets, the change in the valuation of the contingent rights liability and litigation reserves. Aruba defines non-GAAP EPS as non-GAAP net income divided by the weighted average diluted shares outstanding. Aruba's management regularly uses these non-GAAP financial measures to understand and manage its business and 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 stock-based expenses and related payroll taxes, but also discrete charges that are infrequent in nature, such as litigation reserves. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, 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, the change in the valuation of the contingent rights liability and litigation reserves, 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 and related payroll taxes, that are recurring. Stock-based expenses and related payroll taxes 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 http://www.arubanetworks.com.
About Aruba Networks
Aruba is a global leader in distributed enterprise networks. Its award-winning portfolio of campus, branch/teleworker, and mobile solutions simplify operations and secure access to all corporate applications and services - regardless of the user's device, location, or network. This dramatically improves productivity and lowers capital and operational costs.
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 or Facebook.
© 2010 Aruba Networks, Inc. AirWave®, Aruba Networks®, Aruba Mobility Management System®, Bluescanner, For Wireless That Works®, Mobile Edge Architecture®, People Move. Networks Must Follow®, The All-Wireless Workplace Is Now Open For Business, RFprotect®, Green Island, and The Mobile Edge Company®are trademarks of Aruba Networks, Inc. All rights reserved. All other trademarks are the property of their respective owners.
SOURCE: Aruba Networks, Inc.
Aruba Networks, Inc.