SCIENCE

Aruba Networks released financial results for its fiscal fourth quarter and fiscal year ended July 31, 2011.

Revenue for Q4’11 was $113.8 million, an increase of 47 percent from the $77.3 million reported in Q4’10. GAAP net income for Q4’11 was $68.2 million, or $0.57 per share, compared with net income of $0.4 million, or $0.00 per share, in Q4’10. As a result of our increasing operating profitability in fiscal 2011 and expectations for continued profits going forward, GAAP net income for the fourth quarter included a one-time tax benefit of $72.8 million, equivalent to $0.61 per share, due to the release of the company's valuation allowances and the recording of the associated net deferred tax assets on its balance sheet. This one-time event is in conjunction with the establishment of Aruba’s international operating entities to optimize Aruba’s long term tax structure.

Non-GAAP net income for Q4’11 was $20.2 million, or $0.17 per share. This compares with $11.1 million, or $0.10 per share, in Q4'10. A reconciliation between GAAP and non-GAAP information is contained in the tables below.

Fiscal year 2011 revenue was $396.5 million, an increase of 49 percent from the $266.5 million reported in fiscal year 2010. GAAP net income for fiscal year 2011 was $70.7 million, or $0.60 per share, compared with a net loss of $34.0 million, or $0.38 per share, in fiscal year 2010. Non-GAAP net income for fiscal year 2011 was $69.3 million, or $0.59 per share, compared with $30.0 million, or $0.29 per share, in fiscal year 2010.

“Demand for our wireless LAN solutions continued to be strong throughout our fiscal fourth quarter, as revenue increased by 47 percent year-over-year and 8 percent sequentially,” said Dominic Orr, President and Chief Executive Officer of Aruba. “Mobile device adoption continues to accelerate resulting in proliferating demand for Enterprise mobility solutions. Revenue from the existing customer base remains strong and we are especially encouraged by our rapid new customer acquisitions adding over 4,500 customers in the last twelve months. With robust Q4 bookings and a solid pipeline for our wireless LAN solutions, we enter our fiscal 2012 confident in our ability to grow faster than the market and increase our market share.”

“In addition to delivering a strong Q4, for the fiscal year, Aruba achieved record revenue, non-GAAP gross margin, operating margin and net income,” said Michael Galvin, Aruba’s Chief Financial Officer. “We also generated nearly $58 million in cash flow from operations during the fiscal year.”

Recent Highlights

• Proof of High-Density iPad Multimedia Performance over Aruba Wi-Fi - Validated by the University of Ottawa information technology (IT) department, six leading multimedia educational applications were delivered to a high density iPad environment, concurrently with100 percent of the iPads meeting the multimedia Service Level Agreement (SLA).
• Proven High Performance for Microsoft Lync Server 2010 over Wi-Fi – Aruba announced that its MOVE architecture for Wi-Fi networking enables wire-like performance for Microsoft Lync Server 2010, with tests showing up to 75 percent better performance for Microsoft Lync Server 2010 compared to an equivalent Cisco Wi-Fi network.
• Suite B Cryptography for Mobile Networks Introduced – Aruba announced the expansion of its secure mobility offerings by introducing Suite B cryptography on the Aruba Mobility Controller for use in classified government and high-security enterprise networks to ease government smartphone and tablet adoption.

Conference Call Information

Aruba will host a conference call for analysts and investors to discuss its fiscal fourth quarter and full year 2011 results today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). A live webcast of the conference call will also be accessible from the “Investor Relations” section of the company’s website at www.arubanetworks.com. Following the webcast, an archived version will be available on the website for twelve months. To hear the replay, parties in the United States and Canada should call 1-800-406-7325 and enter passcode 4463275. International parties can access the replay at +1-303-590-3030 and should enter passcode 4463275.