Aruba struggles to reverse losses as sales climb

Distributed network and wireless specialist Aruba Networks has booked year-on-year increase in sales but barely managed to reverse its losses in the year-ago quarter after turning in its fiscal Q3 numbers. While sales rose 51% year-on-year and 10% sequentially to hit a new record of $69m (&poun

Distributed network and wireless specialist Aruba Networks has booked year-on-year increase in sales but barely managed to reverse its losses in the year-ago quarter after turning in its fiscal Q3 numbers.

While sales rose 51% year-on-year and 10% sequentially to hit a new record of $69m (£48.17m), Aruba made a GAAP net loss of $5.3m, compared to $5.8m this time last year.

Aruba CEO Dominic Orr praised the vendor's sales teams, saying: "Adoption of 802.11n accelerated on a sequential basis in Q3, and we continue to see customers divert budgets from wired LANs toward our wireless solution."

Orr did not draw attention to the ongoing losses, but CFO Steffan Tomlinson said year-on-year margins, gross margins and operational leverage were improving.

"Our balance sheet remains strong and we ended the quarter with $144.4m in cash and short term investments," he said.

During the quarter Aruba also forked out $27m for Chinese outdoor mesh network provider Azalea Networks, bulking up its Far Eastern business, as well as its outdoor networking capability, with the addition of a major new operations centre in Beijing. Note, however, that the acquisition came too late in the quarter to materially affect Aruba's overall numbers.

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