Aruba Networks Inc. (ARUN, Financial) filed Annual Report for the period ended 2009-07-31.
Aruba Networks Inc. has a market cap of $743.4 million; its shares were traded at around $8.57 with and P/S ratio of 3.7.
The number of shares of common stock subject to outstanding options did not change as a result of the exchange offer. New options issued as part of the exchange offer are subject to a new vesting schedule in which one third of the shares subject to each new option grant will vest on the one year anniversary of the new grant date with the remaining shares vesting in equal monthly installments over the following two years. The new options will have a maximum term of seven years following the new grant date. We will recognize $3.4 million in incremental stock-based compensation expense over the vesting period of the new grants. We recognized $0.4 million in incremental stock-based compensation expense arising from the new options that were issued as part of the exchange offer.
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Aruba Networks Inc. has a market cap of $743.4 million; its shares were traded at around $8.57 with and P/S ratio of 3.7.
Highlight of Business Operations:
In November 2008, as a result of the macroeconomic downturn, our board of directors approved a plan to reduce our costs and streamline operations through a combination of a reduction in our work force and the closing of certain facilities. The majority of the reduction in our work force was completed in the second quarter of fiscal 2009 and the remaining reduction was completed in the third quarter of fiscal 2009. The reduction in our work force resulted in the termination of 46 employees worldwide, or about 8% of our global work force. Expenses associated with the work force reduction, which were comprised primarily of severance and benefits payments as well as professional fees associated with career transition services, totaled $1.1 million. Additionally, we closed facilities in California and North Carolina and incurred facility exit costs of $0.3 million as a result. These expenses were recorded in the second quarter of fiscal 2009. These cost reduction efforts, when added to our other cost control measures, resulted in a savings of approximately $2.0 million during the second quarter of fiscal 2009. We realized approximately $5.0 million in additional savings during the second half of fiscal 2009 based on all of our cost reduction efforts. These efforts included a decrease in marketing, travel and entertainment, outside contractor and other discretionary expenses as well as hiring controls.The number of shares of common stock subject to outstanding options did not change as a result of the exchange offer. New options issued as part of the exchange offer are subject to a new vesting schedule in which one third of the shares subject to each new option grant will vest on the one year anniversary of the new grant date with the remaining shares vesting in equal monthly installments over the following two years. The new options will have a maximum term of seven years following the new grant date. We will recognize $3.4 million in incremental stock-based compensation expense over the vesting period of the new grants. We recognized $0.4 million in incremental stock-based compensation expense arising from the new options that were issued as part of the exchange offer.
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