Boston, MA 02/21/2014 (wallstreetpr) – Aruba Networks, Inc. (NASDAQ:ARUN) was up by 6% after posting impressive second quarter earnings that beat analysts’ estimates. Despite gaining 6% on active trading on Thursday, the company reported net losses for the quarter compared to profits for the same period a year ago. Expense for the quarter increased more than revenue.
Recent quarters had seen the company record profits due to the increase in demand for wireless products in the mobile device industry. Increased competition and higher operating costs greatly influencedresults for the quarter.
Q2 result analysis
Aruba Networks, Inc. (NASDAQ:ARUN) registered record revenues for the second quarter that grew by 14% to come in at $176.4 million compared to revenues of $155.4 million reported for the same quarter a year earlier.Aruba registered a GAAP net loss of $10.7 million compared to a GAAP net income of $5 million reported a year earlier. The company had initially estimated per share profits for the quarter to be in the range of 16 cents to 17 cents with revenues of between $165 and 169 million.
Aruba Networks, Inc. (NASDAQ:ARUN) product revenues for the quarter grew to highs of $141.765 million from $130 million posted in the previous quarter. Professional services and support revenues also grew from $24.46 million a year earlier to $34.60 million. Gross margin for the quarter dropped from 71.3% to 69.7%.
Non GAAP net income for the quarter came in at $21.4 million that was a drop compared to a GAAP income of $27.3 million reported a year ago same quarter. Aruba Networks, Inc. (NASDAQ:ARUN) Chief Executive officer Dominic Orr was buoyed by the results as the company reached a milestone with record revenues for the quarter. Strong sales across the 802.11AC and instant solution contributed to the massive growth of total revenues.
The quarter was mired by a 21% increase in operating expenses that greatly affected profitability of Aruba Networks, Inc. (NASDAQ:ARUN) and also included a 23% increase in costs for research and development. The net loss for the second quarter stood at $10.7 million compared to a profit of $5 million reported for the same quarter a year ago. Adjusted earnings excluding stock based compensation and other items for the quarter slumped from 22 cents registered a year early to lows of 18 cents.
