Aruba Networks Inc. (ARUN), Thursday reported a swing to profit in the first quarter from a loss last year, due mainly to a 29 percent jump in revenues. However, shares of the wireless-network equipment maker slipped eight percent in the extended trading hours on some weak second-quarter outlook.
Sunnyvale, California-based Aruba reported a first-quarter profit of $2.7 million or $0.02 per share compared with a loss of $7.8 million or $0.07 per share last year.
Adjusted earnings for the quarter were $0.26 per share compared with $0.16 per share a year ago. On average, 31 analysts polled by Thomson Reuters estimated earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.
Aruba's revenues for the first quarter grew 29 percent to $207.8 million from $160.9 million last year. Analysts had a consensus revenue estimate of $204.3 million for the quarter.
Gross margins for the quarter improved to 70.5 percent from 69.8 percent last year.
CEO Dominic Orr said, "Adoption of 802.11ac technology continued to drive growth in many of our verticals, including federal government, retail and enterprise. Our recent focus on penetrating the small to mid-sized enterprise market is paying off, and we are excited about the opportunity to continue to accelerate in this fast growing portion of the wireless market."
In its earnings conference call, Aruba Networks said it expects second-quarter adjusted earnings of $0.26 to $0.27 per share with revenues of $208 million to $212 million. Analysts currently estimate earnings of $0.27 per share with revenues of $211.6 million for the quarter.
ARUN closed Thursday's trading at $21.80, up $0.27 or 1.25%, on the Nasdaq. The stock, however, dropped $1.80 or 8.26% in the after-hours trade.
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