Aruba Networks Loss Deepens Despite Higher Revenues
Published on: 16th Nov 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
Aruba Networks has reported that its first fiscal quarter revenues rose by 21 percent to US$144.5 million while the net loss deepened to US$0.8 million from US$0.5 million a year ago.
Bookings were strong in the quarter with good growth in the U.S., Asia-Pacific/Japan and developing markets, while Europe continued to be impacted by some macro weaknesses.
EMEA revenue grew 19% year-over-year, representing 15% of total revenue for Q1. And Asia-Pacific/Japan grew 40% year-over-year, representing 17% of total revenue. On a sequential basis, the U.S. was the primary driver of Q1 growth.
"We delivered a strong first quarter with 21 percent revenue growth year-over-year and our fourteenth consecutive quarter of record revenue," said Dominic Orr, Aruba's president and chief executive officer. "During the quarter, we saw healthy growth across our major products and core verticals."
Aruba's inventory total $28.2 million at the end of Q1, an increase of $6 million from the end of Q4.
The company expects Q2 '13 revenue to be in the range of $150 million to $153 million, an increase of 19% to 21% year-over-year and 4% to 6% sequential.
Commenting on the financial results, Michael Galvin, Aruba's chief financial officer, added, "Due to solid working capital management, we generated $36.9 million in cash flow from operations and ended the quarter with $377.5 million in cash, cash equivalents and short-term investments."
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