February 18, 2010 / 9:29 PM / 9 years ago

UPDATE 2-Aruba Q2 results beat Street, sees strong Q3

* Q2 adj EPS of 6 cents beats estimates by a cent

* Q2 revenue up 31 pct

* Sees Q3 adj EPS of $0.07 vs est of $0.06

* Q3 sales forecast beats estimates

* Shares rise 2 pct after the bell (Recasts, adds outlook, analysts’ comments, updates share movement)

By Shrutika Verma

BANGALORE, Feb 18 (Reuters) - Aruba Networks Inc ARUN.O, which posted a better-than-expected quarterly profit, forecast a strong third quarter on increasing demand for wi-fi infrastructure and gains in the wireless LAN equipment market.

Aruba forecast third-quarter adjusted earnings of 7 cents a share on revenue of $64 million to $66 million.

Analysts were looking for earnings of 6 cents a share, excluding items, on revenue of $62 million, according to Thomson Reuters I/B/E/S.

Aruba said on a conference call with analysts that IT spending has begun to show some signs of recovery and its pipeline remains robust.

It also said that its bookings were strong across all geographies.

“They are seeing a broader increase in the IT spending and are also seeing proliferation of remote locations... corporations are growing geographically and that is a driver for them,” Brigantine Advisors analyst Joanna Makris said by phone.

Aruba, the No. 2 wireless LAN provider after Cisco Systems Inc (CSCO.O), supplies equipment for secured wireless network used in offices. It added more than 700 new customers during the second quarter.

“Cisco reported wireless growth in high single digits versus 31 percent growth for Aruba,” said Signal Hill Group analyst Erik Suppiger, who believes the company is gaining market share against Cisco.

For the second quarter ending Jan. 31, net loss fell to $4.4 million, or 5 cents per share, from $6.8 million, or 8 cents per share, a year earlier.

Excluding items, the company earned 6 cents a share.

Revenue rose 31 percent to $62.7 million.

Analysts on average expected earnings of 5 cents a share, excluding exceptional items, on revenue of $59.9 million.

Aruba’s latest wi-fi, or WLAN, products use the 802.11n technology, which ensures much faster connectivity than current standards of wireless local area networks.

Aruba shares, which have almost quadrupled in value over the last one year, were up 2 percent at $11.10 in after-market trade. They closed at $10.91 Thursday on Nasdaq. (Reporting by Shrutika Verma; Editing by Anne Pallivathuckal)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below