Aruba Networks Inc. (ARUN, Financial) filed Quarterly Report for the period ended 2012-01-31.
Aruba Networks has a market cap of $2.34 billion; its shares were traded at around $22.28 with and P/S ratio of 5.9.
During the second quarter of fiscal 2012, sales and marketing expenses increased 34.6% compared to the second quarter of fiscal 2011. Personnel and related costs increased $8.3 million primarily due to an increase in headcount of 121 employees. An increase in stock-based compensation and payroll taxes of $3.8 million contributed to the increase in personnel and related costs. Facilities and IT-related expenses increased $0.7 million primarily due to the increase in headcount. Commission expense increased $2.7 million corresponding to the increase in revenue. Marketing expenses increased $0.7 million due to field marketing efforts and product launches. Finally, amortization expense increased $0.4 million primarily as a result of our acquisition of Avenda.
During the first six months of fiscal 2012, sales and marketing expenses increased 35.5% compare to the first six months of fiscal 2011 primarily due to an increase in headcount. Personnel and related costs increased $15.6 million, including an increase of $6.7 million in stock-based compensation and payroll taxes. The increase in headcount also drove the increase in facilities and IT-related expenses of $1.4 million. Commission expense increased $5.5 million primarily due to our increase in revenues, and marketing expenses increased $2.0 million primarily due to product launches Amortization expense increased $0.5 million as a result of our acquisition of Avenda.
Interest income increased slightly during the second quarter and first six months of fiscal 2012 compared to the second quarter and first six months of fiscal 2011. The increase is primarily due to higher cash and investment balances in interest-earning accounts. Our average interest-earning cash and investment balance for the second quarter of fiscal 2012 was $220.2 million compared to $143.4 million for the second quarter of fiscal 2011. Our average interest-earning cash and investment balance for the first six months of fiscal 2012 was $200.1 million compared to $141.8 million for the first six months of fiscal 2011.
As of July 31, 2011, we had NOL carryforwards of $230.0 million and $156.1 million for federal and state income tax purposes, respectively. We also had research and credit carryforwards of $17.4 million for federal and $18.2 million for state income tax purposes as of July 31, 2011. During the second quarter and first six months of fiscal 2012 we utilized federal income tax NOL carryforwards of $8.3 million and $89.2 million, respectively. During the second quarter and first six months of fiscal 2012 we utilized state income tax NOL carryforwards of $1.9 million and $39.0, respectively. Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain.
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Aruba Networks has a market cap of $2.34 billion; its shares were traded at around $22.28 with and P/S ratio of 5.9.
Highlight of Business Operations:
During the second quarter of fiscal 2012, total revenues increased $32.4 million, or 34.5%, over the second quarter of fiscal 2011. An increase in product revenues of 34.0% during the second quarter of fiscal 2012 compared to the second quarter of fiscal 2011 drove the overall increase in total revenues. During the first six months of fiscal 2012, total revenues increased $68.6 million compared to the first six months of fiscal 2011, also driven by an increase in product revenues of $58.8 million over the same period.During the second quarter of fiscal 2012, sales and marketing expenses increased 34.6% compared to the second quarter of fiscal 2011. Personnel and related costs increased $8.3 million primarily due to an increase in headcount of 121 employees. An increase in stock-based compensation and payroll taxes of $3.8 million contributed to the increase in personnel and related costs. Facilities and IT-related expenses increased $0.7 million primarily due to the increase in headcount. Commission expense increased $2.7 million corresponding to the increase in revenue. Marketing expenses increased $0.7 million due to field marketing efforts and product launches. Finally, amortization expense increased $0.4 million primarily as a result of our acquisition of Avenda.
During the first six months of fiscal 2012, sales and marketing expenses increased 35.5% compare to the first six months of fiscal 2011 primarily due to an increase in headcount. Personnel and related costs increased $15.6 million, including an increase of $6.7 million in stock-based compensation and payroll taxes. The increase in headcount also drove the increase in facilities and IT-related expenses of $1.4 million. Commission expense increased $5.5 million primarily due to our increase in revenues, and marketing expenses increased $2.0 million primarily due to product launches Amortization expense increased $0.5 million as a result of our acquisition of Avenda.
Interest income increased slightly during the second quarter and first six months of fiscal 2012 compared to the second quarter and first six months of fiscal 2011. The increase is primarily due to higher cash and investment balances in interest-earning accounts. Our average interest-earning cash and investment balance for the second quarter of fiscal 2012 was $220.2 million compared to $143.4 million for the second quarter of fiscal 2011. Our average interest-earning cash and investment balance for the first six months of fiscal 2012 was $200.1 million compared to $141.8 million for the first six months of fiscal 2011.
As of July 31, 2011, we had NOL carryforwards of $230.0 million and $156.1 million for federal and state income tax purposes, respectively. We also had research and credit carryforwards of $17.4 million for federal and $18.2 million for state income tax purposes as of July 31, 2011. During the second quarter and first six months of fiscal 2012 we utilized federal income tax NOL carryforwards of $8.3 million and $89.2 million, respectively. During the second quarter and first six months of fiscal 2012 we utilized state income tax NOL carryforwards of $1.9 million and $39.0, respectively. Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain.
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