Aruba Networks Quarter Loss Widens

Forbes has just put out this press on Aruba, and it goes a little something like this:

“Wireless networking technology company Aruba Networks Inc. said Wednesday that its net loss widened in its fiscal second quarter, hurt by stock-based expenses and restructuring charges.

For the period ended Jan. 31, the company posted a loss of $6.8 million, or 8 cents per share, compared with a year-earlier loss of $3.5 million, or 4 cents per share.

Special charges in the quarter included $6.1 million in stock-based expenses, $1.2 million in amortization expense of acquired intangible assets and a $1.4 million restructuring charge.

Without the charges, adjusted net income came in at 2 cents per share, up from a penny a year ago, the company said.

Revenue grew 17 percent to $47.7 million from $40.6 million.

Analysts polled by Thomson Reuters expected, on average, revenue of $45.5 million.

Following the issuance of the report of results, Aruba shares gained 32 cents, or 12 percent, to $3.08 in after-hours trading. In the regular session before the report, the stock fell 12 cents, or 4.2 percent, to close at $2.76.”

It may seem from other press releases that Aruba is increasing with revenue, but they are simply stuffing the channel. Next quarter will be dismissal unless more partners come onboard.

Aruba Speaking at Financial Conference?!

Aruba has just announced that CFO, Steffan Tomlinson, will be presenting at the 2008 Credit Suisse Technology Conference in Scottsdale, AZ. CSTC is a forum for the financial community. However a week or two ago Aruba reported a loss of $6.4 million. Awkward right? How would a company that reported a loss in millions and a cut in staff speak about financial decisions?! Its almost like Shaq trying to speak about how to make 3 point shots. IT DOESNT MAKE SENSE! Also not to mention it might be a bad look to be speaking at a financial conference while your company just declined in revenue. Individuals might walk away from the conference knowing what NOT to do compared to Aruba. Sorry this attempt is a:

Aruba cuts staff, sign of failing?

Bizjournal’s recent article on Aruba displays that they are in one tough situation. I’ll share it with you guys:

“Aruba Networks Inc. late Thursday said it will cut staff and reported a first quarter loss of $6.4 million, or 8 cents a share, widened from a loss of $600,000, or a penny a share in the same period last year.

Sunnyvale-based Aruba (NASDAQ:ARUN), which focuses on wireless LANs and secure mobility, reported revenue of $52.4 million, an increase of 12 percent over the $46.7 million reported in the fiscal first quarter of 2008 and a quarterly record for the company.

Results included $6.5 million of non-cash stock-based expenses and $1.2 million of amortization expense of acquired intangible assets.

Excluding items, the company’s income would have been $1.4 million, or 2 cents a share, compared to non-GAAP income of $4.1 million, or 4 cents a share in the year-ago quarter.

“Entering our second quarter, we remain cautiously optimistic about our year-over-year growth prospects even in the tougher economy,” the company said. “At the same time, we are refocusing our efforts to improve our profitability and believe that we can achieve greater operating leverage by examining costs throughout our business.”

Aruba said it is reducing operating expenses by approximately 10 percent through a combination of a reduction in work force and reducing other non-headcount related expenditures. Net expense associated with the reduction in work force, which is primarily for severance and severance benefits, is expected to total approximately $1.2 million, which the company expects to incur in the fiscal second quarter.

Aruba did not say how many jobs would be eliminated.”

It seems like the recession has been hitting them hard. It’s a shame that a lot of their employees will now be laid off as a result. I believe that if you have to lay off your employees because of your financial situation and not because of their performance, then you are in trouble for failing.