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Aruba Networks Inc. Reports Operating Results (10-Q)

December 11, 2012 | About:
10qk

10qk

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Aruba Networks Inc. (ARUN) filed Quarterly Report for the period ended 2012-10-31.

Aruba Networks, Inc. has a market cap of $2.21 billion; its shares were traded at around $20.87 with a P/E ratio of 389.7 and P/S ratio of 4.1.

Highlight of Business Operations:

During the first quarter of fiscal 2013, total revenue increased $25.1 million, or 21.1%, over the first quarter of fiscal 2012. An increase in product revenue of 17.9% during the first quarter of fiscal 2013 compared to the first quarter of fiscal 2012 drove the overall increase in total revenue.

Gross margins increased 150 basis points to 70.8% during the first quarter of fiscal 2013 compared to 69.3% in the first quarter of fiscal 2012. This increase is primarily due to improved product margin as our product mix was favorable towards higher margin products and improved professional services and support margin as we grew our professional services and support revenue while controlling the increase in our professional services and support cost of revenue. Additionally, as a percentage of total revenue, professional services and support, which has higher margin percentage, increased relative to product; thus, our overall gross margin improved in the first quarter of fiscal 2013 compared to first quarter of fiscal 2012.

During the first quarter of fiscal 2013, sales and marketing expenses increased 18.2% compared to the first quarter of fiscal 2012. Personnel and related costs increased $6.5 million primarily due to an increase in headcount. These costs include an increase in commissions of $1.4 million and an increase in stock-based compensation of $0.8 million. Cost for travel and expenses also increased by $0.6 million. Facilities and IT-related expenses related to our worldwide sales and marketing efforts also increased $1.0 million, of which $0.6 million is to support business growth and $0.4 million is due to increased allocations, which were previously classified in General and Administrative expenses.

Interest income increased slightly during the first quarter of fiscal 2013 compared to the first quarter of fiscal 2012. The increase was primarily due to higher cash and investment balances in interest-earning accounts. Our average interest-earning cash and investment balance for the first quarter of fiscal 2013 was $230.8 million compared to $190.0 million for the first quarter of fiscal 2012.

As of July 31, 2012, we had NOL carry-forwards of $164.1 million and $142.1 million for federal and state income tax purposes, respectively. We also had research and credit carry-forwards of $17.2 million for federal and $20.7 million for state income tax purposes as of July 31, 2012. During the first quarter of fiscal 2013, we generated federal income tax NOL carry-forwards of $2.6 million. During the first quarter of fiscal 2013, we generated state income tax NOL carry-forwards of $1.2 million for state income tax purposes. Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain.

Read the The complete Report

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10qk
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