Shares of network equipment maker Aruba Networks Inc. (NASDAQ: ARUN) climbed by almost 15 % on Friday following the release of fiscal fourth-quarter results which saw both revenue and adjusted earnings beating Street analysts’ estimation.
Earlier on Thursday, after the closing bell ring, Aruba reported fourth quarter loss as it did not include a tax benefit of $72.8 million. This error was rectified on Friday at 12:28 p.m. EST.
The company has been witnessing strong revenue growth in recent quarters on account of sustained demand for its products from carriers and businesses. As usage of mobile devices has flourished, demand for wireless products is also rising at brisk pace.
Commenting over the results, Dominic Orr, Company’s Chief Executive said in a conference call, “We experienced bookings growth in the key geographies in all 3 of our major theaters, with the exception of Southern Europe, which has a small percentage of revenue. We continue to believe that core wireless LAN demand remains very solid, and our bookings and linearity in the quarter were consistent with past Q4s.”
For the quarter ended July 31, the company on Thursday reported a loss of $3 million, or three cents a share, compared to a profit of $68.2 million, or 57 cents a share, in the year earlier quarter. The year-earlier quarter profit was calculated after including a tax benefit of 61 cents a share.
After excluding onetime expenses and stock based compensations earnings for the quarter stood at18 cents- a penny higher than corresponding period of the last year. Revenue for the period leaped 22% to $139.2 million.
Earlier in May, Aruba Networks had forecasted earnings of 16 cents to 17 cents on revenue of $136 million to $138 million.
Gross margin increased to 71.4% from year earlier quarter’s 68.5%.
Revenue from equipments division, which generates majority of the company’s top line, jumped 20% to $117.1 million.
According to RBC Capital Markets analyst , Mark Sue, Aruba will not only continue to derive strong sequential demand from the U.S but the revenue growth among other geographical segment will also show better year-one-year on trends, excluding European region.
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