- “In the third quarter, we benefited from strong demand across all of our major geographies and increasing acceptance of our solutions in both the general enterprise and across our other verticals. Our continued innovation is a key factor in our rapid customer acquisition, as we added over 1,200 new customers in the third quarter, a record for the Company.”
While the chart looks "meh" of late, it has outperformed many of its cohorts in the 'networking' space. It bounced sharply off its 100 day moving average 3 days ago and provided a nice entry point for the very nimble.
- The company also said a new tax structure resulting in a tax rate of 20-22 percent will come into effect in the first-quarter of 2012. Analysts were expecting the changes to take effect in the second quarter. "It might be a bit more difficult (for Aruba) to show an EPS expansion given that tax headwind," analyst Marchetti said.
- Aruba's shares were down 3% after hours, after it issued its results and outlook. In answering a question on a conference call with analysts, Aruba CEO Dominic Orr said the company didn't want to be too aggressive in its guidance because of a still-uncertain global economy.
- Aruba makes equipment for wireless local area networks. Such WLAN gear lets workers in remote offices securely connect tablets, smartphones and laptops to their computer networks. Aruba installs its security and management functions on mobile devices. The software then hooks into wired networks through an access switch. Ensuring the security of wireless devices is a growing priority for tech managers. Aruba has benefited from rapid adoption of the Apple (AAPL) iPad tablet.
- A recent survey of 152 global tech buyers found that 10% of companies use Aruba's WLAN gear vs. 78% that use Cisco's, according to CIOZone Research Network. But 27% of those polled say they're considering Aruba for future purchases compared with 71% for Cisco.
[Feb 18, 2011: Aruba Networks Scorches Upward, Despite CFO Departure]