Aruba Networks reports narrowing 2nd-qtr loss and beats expectations

Aruba Networks’ loss narrows and beats forecasts

SUNNYVALE, Calif. — Aruba Networks Inc. said Thursday that its second-quarter loss narrowed as revenue at the equipment maker for wireless network providers jumped 31 percent from a year earlier.

For the three months that ended Jan. 31, the company said it lost $4.4 million, or 5 cents per share, compared with a loss of $6.8 million, or 8 cents per share, a year earlier.

The results included $9 million in non-cash stock-based expenses, $1.2 million in amortization expenses and $500,000 in litigation reserves.

Excluding such one-time items, the company beat Wall Street expectations by earning $6.3 million, or 6 cents per share. Analysts polled by Thomson Reuters had expected it to earn 5 cents per share on that basis.

Shares of Aruba Networks rose 19 cents to $11.10 after the market closed. They fell 18 cents to $10.91 during regular trading Thursday.

Aruba noted in a statement that stock-based compensation expenses “have been and will continue to be” a significant recurring expense for the company.

Its quarterly revenue rose to $62.7 million from $47.7 million in same period last year. But rising expenses offset that increase.

Sales and marketing costs increased to $26.6 million from $21.6 million.

Research and developments costs were $12 million, up from $10.3 million, and general and administrative costs were $7.6 million, up from $6 million.