- Revenue Increases 31% Year over Year to a Record $62.7 Million
- Company Adds Over 700 New Customers
- Ending Cash and Short Term Investments were $129.1 Million, with No Debt
SUNNYVALE, Calif.--(BUSINESS WIRE)--Aruba Networks, Inc. (NASDAQ:ARUN), a global leader in 802.11n wireless LANs and secure mobility solutions, today released financial results for its fiscal second quarter ended January 31, 2010.
Revenues for the fiscal second quarter of 2010 were $62.7 million, an increase of approximately 31% over the $47.7 million reported in the fiscal second quarter of 2009. GAAP net loss for the fiscal second quarter of 2010 was $4.4 million, or $0.05 per share, compared to a net loss of $6.8 million, or $0.08 per share, in the fiscal second quarter of 2009. GAAP results for the fiscal second quarter of 2010 also included $9.0 million of non-cash stock-based expenses, $1.2 million of amortization expenses of acquired intangible assets and $0.5 million in litigation reserves.
Non-GAAP net income for the fiscal second quarter of 2010 increased $4.3 million from the fiscal second quarter of 2009 to $6.3 million, or $0.06 per share, compared to $2.0 million or $0.02 per share in the prior year period. Non-GAAP net income for these periods excludes the impact of non-cash stock-based expenses and amortization expenses of acquired intangible assets and, for the fiscal second quarter of 2010, litigation reserves and, for the fiscal second quarter of 2009, restructuring expenses.
“During the quarter we saw strong demand across a broad range of industries and geographies, driving record revenues up 31% year-over-year and 9% sequentially,” said Dominic Orr, president and chief executive officer of Aruba. "The adoption of 802.11n continues to be a catalyst for growth and enables our key network rightsizing and Virtual Branch Networking initiatives. Both of these initiatives contributed to our strong quarterly growth as enterprises drive to reduce operating expenses and network costs while supporting increasingly mobile workforces. We are very pleased to have added more than 700 new customers during the quarter, a record for the company, bringing our total installed base to over 9,300 customers.”
“Record revenues of $62.7 million and strong gross margins resulted in sequential and year over year operating margin improvement during the quarter,” said Steffan Tomlinson, Aruba’s chief financial officer. “Our balance sheet remains very strong, and we ended the quarter with $129.1 million in cash and short term investments.”
Recent Highlights
Recent highlights include:
- Positioned as a Leader in Gartner’s WLAN Magic Quadrant – Aruba was again positioned as a Leader in Gartner’s 2009 Magic Quadrant for Wireless LAN Infrastructure.
- Industry Awards - The Company received three awards for the AirWave Wireless Management Suite, Virtual Branch Networking, and RAP-2 Remote Access Point solutions as part of the eighth annual Mobile Star Awards(TM) program. Additionally, the Company’s 802.11n high-speed wireless LAN won an INTERNET TELEPHONY Excellence Award for its 802.11n deployment at the Boston Medical Center.
- AirWave 7 - Aruba announced the release of AirWave 7, a major extension of its award-winning operations solution that integrates the management of wireless networks, wired infrastructure, and client devices into a single interface. AirWave 7 provides a single point of visibility and control for the entire network edge, including wired and wireless infrastructure and individual client devices.
- Video Over Wireless LAN – The Company announced a path-breaking program to encode and wirelessly distribute multi-channel IP-based video (IPTV) over its high-speed 802.11n wireless LAN at customer Liberty University. By rightsizing the video delivery infrastructure - leveraging 802.11n Wi-Fi everywhere possible and minimizing reliance on expensive coaxial and Ethernet cabling plants -user mobility was enhanced while capital and operating expenses fell significantly.
- Industry Veteran to Head up Worldwide Channel Sales – Aruba announced the appointment of Bob Bruce as vice president of worldwide channel sales. Mr. Bruce is a well-respected industry veteran, and brings with him over 30 years of enterprise sales and channel experience.
- Wins and Deployments - New customer wins and/or deployments announced this quarter included Tennis Australia (Australian Open), Unna School District, Lawson, U.S. Air Force Special Operations Command, Northwestern University, and Southampton University Hospitals NHS Trust.
Conference Call Information
Aruba will host a conference call for analysts and investors to discuss its fiscal first quarter results today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). A live Web cast of the conference call will also be accessible from the “Investor Relations” section of the Company’s Web site at www.arubanetworks.com. Following the Web cast, an archived version will be available on the Web site for twelve months. To hear the replay, parties in the United States and Canada should call 1-800-406-7325 and enter passcode 4212021. International parties can access the replay at +1-303-590-3030 and should enter passcode 4212021.
Forward-Looking Statements
This press release contains forward-looking statements, including statements that the adoption of 802.11n will result in continued growth of our business.
These forward-looking statements involve risks and uncertainties, as well as assumptions which, if they do not fully materialize or prove incorrect, could cause Aruba’s results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include (1) our ability to react to trends and challenges in our business and the markets in which we operate; (2) business and economic conditions and growth trends in the networking industry, our vertical markets and various geographic regions; (3) changes in overall information technology spending; (4) our ability to establish and maintain successful relationships with our distribution partners; and (5) our ability to compete in our industry, as well as those risks and uncertainties included under the captions “Risk Factors" and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Aruba’s report on Form 10-Q for the fiscal first quarter of 2010 ended October 31, 2009, which was filed with the SEC on December 4, 2009, and is available on Aruba’s investor relations Web site at www.arubanetworks.com and on the SEC Web site at www.sec.gov. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP net income and non-GAAP earnings per share (EPS). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Non-GAAP net income and EPS. Aruba defines non-GAAP net income as net income plus stock-based expenses, amortization expense of acquired intangible assets and, for the fiscal second quarter of 2010, litigation reserves and, for the fiscal second quarter of 2009, restructuring expenses. Aruba defines non-GAAP EPS as non-GAAP net income divided by the weighted average diluted shares outstanding. Aruba’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the company’s performance by excluding certain expenses that may not be indicative of Aruba’s “recurring operating results,” meaning its operating performance excluding not only non-cash charges, such as stock-based expenses, but also discrete cash charges that are infrequent in nature, such as restructuring and litigation expenses. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Aruba’s management believes that providing non-GAAP financial measures that exclude stock-based expenses allows investors to compare these results with those of other companies, as well as providing management with an important tool for financial and operational decision making and for evaluating the company’s operating results over different periods of time. Similarly, by excluding amortization expense of acquired intangible assets, restructuring and litigation expenses, Aruba’s management believes that investors can better understand and measure the company’s recurring operating results.
There are a number of limitations related to the use of non-GAAP net income and EPS versus net income and EPS calculated in accordance with GAAP. First, these non-GAAP financial measures exclude some costs, namely stock-based expenses, that are recurring. Stock-based expenses have been and will continue to be for the foreseeable future a significant recurring expense in Aruba’s business. Second, stock-based awards are an important part of Aruba’s employees’ compensation and impacts their performance. Third, the components of the costs that Aruba excludes in its calculation of non-GAAP net income may differ from the components that its peer companies exclude when they report their results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their most directly comparable financial measures calculated in accordance with GAAP. The accompanying tables have more details on these non-GAAP financial measures, including reconciliations between these financial measures and their most directly comparable GAAP equivalents.
A copy of this press release can be found on the investor relations page of Aruba Networks’ Web site at www.arubanetworks.com.
About Aruba Networks
People move. Networks must follow. Aruba securely delivers networks to users, wherever they work or roam, using a combination of award-winning solutions:
- Adaptive 802.11n Wi-Fi networks optimize themselves to ensure that users are always within reach of mission-critical information. Rightsizing expensive wired LANs by replacing them with high-speed 802.11n Wi-Fi reduces both capital and operating expenses;
- Identity-based security assigns access policies to users, enforcing those policies whenever and wherever a network is accessed;
- Remote networking solutions for branch offices, fixed telecommuters, and satellite facilities ensures uninterrupted remote access to applications;
- Multi-vendor network management provides a single point of control while managing both legacy and new wireless networks from Aruba and its competitors.
The cost, convenience, and security benefits of our secure mobility solutions are fundamentally changing how and where we work. Listed on the The NASDAQ Stock Market and Russell 2000® Index, Aruba is based in Sunnyvale, California, and has operations throughout the Americas, Europe, Middle East, and Asia Pacific regions. To learn more, visit Aruba at http://www.arubanetworks.com. For real-time news updates follow Aruba on Twitter at http://twitter.com/ArubaNetworks
© 2010 Aruba Networks, Inc. AirWave®, Aruba Networks®, Aruba Mobility Management System®, Bluescanner, For Wireless That Works®, Mobile Edge Architecture, People Move. Networks Must Follow., RFProtect, The All Wireless Workplace Is Now Open For Business, Green Island, and The Mobile Edge Company® are trademarks of Aruba Networks, Inc. All rights reserved. All other trademarks are the property of their respective owners.
| Aruba Networks, Inc. |
| Consolidated Balance Sheets |
| (In thousands, except per share data) |
| (Unaudited) |
| | | | | January 31, | | | | July 31, |
| | | | | 2010 | | | | 2009 |
| Assets | | | | | | | | |
| | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | | | $ | 38,411 | | | | | $ | 41,298 | |
| Short-term investments | | | | | 90,677 | | | | | | 81,839 | |
| Accounts receivable, net | | | | | 33,740 | | | | | | 33,466 | |
| Inventory | | | | | 12,758 | | | | | | 8,450 | |
| Deferred costs | | | | | 7,033 | | | | | | 5,152 | |
| Prepaids and other | | | | | 3,494 | | | | | | 2,350 | |
| | | | | | | | | |
| Total current assets | | | | | 186,113 | | | | | | 172,555 | |
| | | | | | | | | |
| Property and equipment, net | | | | | 7,883 | | | | | | 7,426 | |
| Goodwill | | | | | 7,656 | | | | | | 7,656 | |
| Intangible assets, net | | | | | 11,625 | | | | | | 14,091 | |
| Other assets | | | | | 1,206 | | | | | | 1,326 | |
| | | | | | | | | |
| Total other assets | | | | | 28,370 | | | | | | 30,499 | |
| | | | | | | | | |
| Total assets | | | | $ | 214,483 | | | | | $ | 203,054 | |
| | | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | | |
| | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | | | $ | 1,303 | | | | | $ | 930 | |
| Accrued liabilities | | | | | 31,477 | | | | | | 20,722 | |
| Income taxes payable | | | | | 674 | | | | | | 610 | |
| Deferred revenue | | | | | 41,268 | | | | | | 34,654 | |
| | | | | | | | | |
| Total current liabilities | | | | | 74,722 | | | | | | 56,916 | |
| | | | | | | | | |
| Deferred revenue | | | | | 9,704 | | | | | | 8,524 | |
| Other long-term liabilities | | | | | 624 | | | | | | 29 | |
| | | | | | | | | |
| Total other liabilities | | | | | 10,328 | | | | | | 8,553 | |
| | | | | | | | | |
| Total liabilities | | | | | 85,050 | | | | | | 65,469 | |
| | | | | | | | | |
| Stockholders' equity | | | | | | | | |
| Common Stock: $0.0001 par value; 350,000 shares authorized at January 31, 2010 and July 31, 2009; 89,027 and 86,744 shares issued and outstanding at January 31, 2010 and July 31, 2009, respectively | | | | | 9 | | | | | | 9 | |
| Additional paid-in capital | | | | | 299,967 | | | | | | 279,026 | |
| Accumulated other comprehensive income | | | | | 192 | | | | | | 182 | |
| Accumulated deficit | | | | | (170,735 | ) | | | | | (141,632 | ) |
| | | | | | | | | |
| Total stockholders' equity | | | | | 129,433 | | | | | | 137,585 | |
| | | | | | | | | |
| Total liabilities and stockholders' equity | | | | $ | 214,483 | | | | | $ | 203,054 | |
| | | | | | | | | |
| Aruba Networks, Inc. |
| Consolidated Statements of Operations |
| (On a GAAP basis) |
| (In thousands, except per share data) |
| (Unaudited) |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | Three months ended | | Six months ended |
| | | | | January 31, | | January 31, |
| | | | | 2010 | | 2009 | | 2010 | | 2009 |
| Revenues: | | | | | | | | | | |
| Product | | | | $ | 52,078 | | | $ | 38,871 | | | $ | 99,276 | | | $ | 82,739 | |
| Professional services and support | | | | | 10,362 | | | | 8,468 | | | | 20,504 | | | | 16,605 | |
| Ratable product and related professional services and support | | | | | 215 | | | | 342 | | | | 471 | | | | 783 | |
| | | | | | | | | | | |
| Total revenues | | | | | 62,655 | | | | 47,681 | | | | 120,251 | | | | 100,127 | |
| | | | | | | | | | | |
| Cost of revenues: | | | | | | | | | | |
| Product | | | | | 18,103 | | | | 13,368 | | | | 34,535 | | | | 29,973 | |
| Professional services and support | | | | | 2,157 | | | | 1,838 | | | | 4,236 | | | | 3,771 | |
| Ratable product and related professional services and support | | | | | 68 | | | | 120 | | | | 154 | | | | 275 | |
| | | | | | | | | | | |
| Total cost of revenues | | | | | 20,328 | | | | 15,326 | | | | 38,925 | | | | 34,019 | |
| | | | | | | | | | | |
| Gross profit | | | | | 42,327 | | | | 32,355 | | | | 81,326 | | | | 66,108 | |
| | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | |
| Research and development | | | | | 12,042 | | | | 10,250 | | | | 23,838 | | | | 20,673 | |
| Sales and marketing | | | | | 26,576 | | | | 21,607 | | | | 51,316 | | | | 46,268 | |
| General and administrative | | | | | 7,628 | | | | 6,015 | | | | 14,760 | | | | 11,300 | |
| Restructuring expenses | | | | | - | | | | 1,447 | | | | - | | | | 1,447 | |
| Litigation reserves | | | | | 500 | | | | - | | | | 20,250 | | | | - | |
| | | | | | | | | | | |
| Total operating expenses | | | | | 46,746 | | | | 39,319 | | | | 110,164 | | | | 79,688 | |
| | | | | | | | | | | |
| Operating loss | | | | | (4,419 | ) | | | (6,964 | ) | | | (28,838 | ) | | | (13,580 | ) |
| | | | | | | | | | | |
| Other income (expense), net | | | | | | | | | | |
| Interest income | | | | | 187 | | | | 556 | | | | 398 | | | | 1,204 | |
| Other income (expense), net | | | | | (148 | ) | | | (168 | ) | | | (244 | ) | | | (484 | ) |
| | | | | | | | | | | |
| Total other income (expense), net | | | | | 39 | | | | 388 | | | | 154 | | | | 720 | |
| | | | | | | | | | | |
| Loss before income tax provision | | | | | (4,380 | ) | | | (6,576 | ) | | | (28,684 | ) | | | (12,860 | ) |
| | | | | | | | | | | |
| Income tax provision | | | | | 47 | | | | 201 | | | | 419 | | | | 294 | |
| | | | | | | | | | | |
| Net loss | | | | $ | (4,427 | ) | | $ | (6,777 | ) | | $ | (29,103 | ) | | $ | (13,154 | ) |
| | | | | | | | | | | |
| Shares used in computing net loss per common share, basic and diluted | | | | | 88,572 | | | | 83,860 | | | | 88,030 | | | | 83,466 | |
| | | | | | | | | | | |
| Net loss per common share, basic and diluted | | | | $ | (0.05 | ) | | $ | (0.08 | ) | | $ | (0.33 | ) | | $ | (0.16 | ) |
| | | | | | | | | | | |
| Aruba Networks, Inc. |
| Consolidated Statements of Operations |
| (GAAP to Non-GAAP Reconciliation) |
| (In thousands, except per share data) |
| (Unaudited) |
| | | | | | | | | | | |
| | | | | Three months ended | | Six months ended |
| | | | | January 31, | | January 31, |
| | | | | 2010 | | 2009 | | 2010 | | 2009 |
| | | | | | | | | | | |
| GAAP net loss | | | | $ | (4,427 | ) | | $ | (6,777 | ) | | $ | (29,103 | ) | | $ | (13,154 | ) |
| | | | | | | | | | | |
| Plus: | | | | | | | | | | |
| a) Stock-based expenses | | | | | 9,004 | | | | 6,129 | | | | 16,823 | | | | 12,622 | |
| b) Amortization expense of acquired intangible assets | | | | | 1,233 | | | | 1,234 | | | | 2,465 | | | | 2,468 | |
| c) Restructuring expenses | | | | | - | | | | 1,447 | | | | - | | | | 1,447 | |
| d) Litigation reserves | | | | | 500 | | | | - | | | | 20,250 | | | | - | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Non-GAAP net income | | | | $ | 6,310 | | | $ | 2,033 | | | $ | 10,435 | | | $ | 3,383 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| GAAP net loss per common share | | | | $ | (0.05 | ) | | $ | (0.08 | ) | | $ | (0.33 | ) | | $ | (0.16 | ) |
| | | | | | | | | | | |
| Plus: | | | | | | | | | | |
| a) Stock-based expenses | | | | | 0.09 | | | | 0.07 | | | | 0.19 | | | | 0.15 | |
| b) Amortization expense of acquired intangible assets | | | | | 0.01 | | | | 0.01 | | | | 0.02 | | | | 0.03 | |
| c) Restructuring expenses | | | | | - | | | | 0.02 | | | | - | | | | 0.02 | |
| d) Litigation reserves | | | | | 0.01 | | | | - | | | | 0.22 | | | | - | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Non-GAAP net income per common share | | | | $ | 0.06 | | | $ | 0.02 | | | $ | 0.10 | | | $ | 0.04 | |
| | | | | | | | | | | |
| Shares used in computing diluted GAAP net loss per common share | | | | | 88,572 | | | | 83,860 | | | | 88,030 | | | | 83,466 | |
| | | | | | | | | | | |
| Shares used in computing diluted Non-GAAP net income per common share | | | | | 101,991 | | | | 88,841 | | | | 101,145 | | | | 86,838 | |
| | | | | | | | | | | |
| Aruba Networks, Inc. |
| Consolidated Statements of Operations |
| As a Percentage of Total Revenues |
| (On a GAAP Basis) |
| (Unaudited) |
| | | | | | | | | | | |
| | | | | Three months ended | | Six months ended |
| | | | | January 31, | | January 31, |
| | | | | 2010 | | 2009 | | 2010 | | 2009 |
| Revenues: | | | | | | | | | | |
| Product | | | | 83.1 | % | | 81.5 | % | | 82.6 | % | | 82.6 | % |
| Professional services and support | | | | 16.5 | % | | 17.8 | % | | 17.0 | % | | 16.6 | % |
| Ratable product and related professional services and support | | | | 0.4 | % | | 0.7 | % | | 0.4 | % | | 0.8 | % |
| | | | | | | | | | | |
| Total revenues | | | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | |
| Cost of revenues: | | | | | | | | | | |
| Product | | | | 28.9 | % | | 28.0 | % | | 28.7 | % | | 29.9 | % |
| Professional services and support | | | | 3.4 | % | | 3.9 | % | | 3.5 | % | | 3.8 | % |
| Ratable product and related professional services and support | | | | 0.1 | % | | 0.2 | % | | 0.2 | % | | 0.3 | % |
| | | | | | | | | | | |
| Total cost of revenues | | | | 32.4 | % | | 32.1 | % | | 32.4 | % | | 34.0 | % |
| | | | | | | | | | | |
| Gross profit | | | | 67.6 | % | | 67.9 | % | | 67.6 | % | | 66.0 | % |
| | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | |
| Research and development | | | | 19.2 | % | | 21.5 | % | | 19.8 | % | | 20.6 | % |
| Sales and marketing | | | | 42.5 | % | | 45.4 | % | | 42.7 | % | | 46.2 | % |
| General and administrative | | | | 12.2 | % | | 12.6 | % | | 12.3 | % | | 11.3 | % |
| Restructuring expenses | | | | 0.0 | % | | 3.0 | % | | 0.0 | % | | 1.4 | % |
| Litigation reserves | | | | 0.8 | % | | 0.0 | % | | 16.8 | % | | 0.0 | % |
| | | | | | | | | | | |
| Total operating expenses | | | | 74.7 | % | | 82.5 | % | | 91.6 | % | | 79.5 | % |
| | | | | | | | | | | |
| Operating loss | | | | (7.1 | %) | | (14.6 | %) | | (24.0 | %) | | (13.5 | %) |
| | | | | | | | | | | |
| Other income (expense), net | | | | | | | | | | |
| Interest income | | | | 0.3 | % | | 1.2 | % | | 0.3 | % | | 1.2 | % |
| Other income (expense), net | | | | (0.2 | %) | | (0.4 | %) | | (0.2 | %) | | (0.5 | %) |
| | | | | | | | | | | |
| Total other income (expense), net | | | | 0.1 | % | | 0.8 | % | | 0.1 | % | | 0.7 | % |
| | | | | | | | | | | |
| Loss before income tax provision | | | | (7.0 | %) | | (13.8 | %) | | (23.9 | %) | | (12.8 | %) |
| | | | | | | | | | | |
| Income tax provision | | | | 0.1 | % | | 0.4 | % | | 0.3 | % | | 0.3 | % |
| | | | | | | | | | | |
| Net loss | | | | (7.1 | %) | | (14.2 | %) | | (24.2 | %) | | (13.1 | %) |
| | | | | | | | | | | |
| Aruba Networks, Inc. |
| Consolidated Statements of Cash Flows |
| (In thousands) |
| (Unaudited) |
| | | | | | | | | | |
| | | | | | | | Six months ended |
| | | | | | | | January 31, |
| | | | | | | | 2010 | | 2009 |
| Cash flows from operating activities | | | | | | |
| Net loss | | | | $ | (29,103 | ) | | $ | (13,154 | ) |
| | | | | | | | | | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | |
| Depreciation and amortization | | | | | 5,006 | | | | 4,716 | |
| Provision for doubtful accounts | | | | | 222 | | | | 69 | |
| Write downs for excess and obsolete inventory | | | | | 917 | | | | 1,471 | |
| Compensation related to stock options and share awards | | | | | 16,823 | | | | 12,622 | |
| Net realized gain on short-term investments | | | | | - | | | | 2 | |
| Accretion/ (amortization) of purchase discounts on short-term investments | | | | | 203 | | | | (203 | ) |
| Loss/ (gain) on disposal of fixed assets | | | | | 28 | | | | (25 | ) |
| Excess tax benefit associated with stock-based compensation | | | | | (161 | ) | | | - | |
| Changes in operating assets and liabilities: | | | | | | |
| Accounts receivable | | | | | (495 | ) | | | 9,046 | |
| Inventory | | | | | (5,795 | ) | | | (4,131 | ) |
| Prepaids and other | | | | | (1,145 | ) | | | 1,332 | |
| Deferred costs | | | | | (1,872 | ) | | | 901 | |
| Other assets | | | | | 181 | | | | 292 | |
| Accounts payable | | | | | 346 | | | | (4,229 | ) |
| Deferred revenue | | | | | 7,794 | | | | 947 | |
| Other current and noncurrent liabilities | | | | | 11,334 | | | | 3,396 | |
| Income taxes payable | | | | | 225 | | | | 163 | |
| | | | | | | | | | |
| Net cash provided by operating activities | | | | | 4,508 | | | | 13,215 | |
| | | | | | | | | | |
| Cash flows from investing activities | | | | | | |
| Purchases of short-term investments | | | | | (32,922 | ) | | | (45,746 | ) |
| Proceeds from sales and maturities of short-term investments | | | | | 23,820 | | | | 33,846 | |
| Purchases of property and equipment | | | | | (2,428 | ) | | | (2,299 | ) |
| Proceeds from sales of property and equipment | | | | | - | | | | 34 | |
| | | | | | | | | | |
| Net cash used in investing activities | | | | | (11,530 | ) | | | (14,165 | ) |
| | | | | | | | | | |
| Cash flows from financing activities | | | | | | |
| Proceeds from issuance of common stock | | | | | 4,010 | | | | 3,335 | |
| Repurchases of unvested common stock | | | | | (36 | ) | | | (9 | ) |
| Repurchase of common stock under stock repurchase program | | | | | - | | | | (991 | ) |
| Excess tax benefit associated with stock-based compensation | | | | | 161 | | | | - | |
| | | | | | | | | | |
| Net cash provided by financing activities | | | | | 4,135 | | | | 2,335 | |
| | | | | | | | | | |
| Effect of exchange rate changes on cash and cash equivalents | | | | | - | | | | (1 | ) |
| | | | | | | | | | |
| Net increase (decrease) in cash and cash equivalents | | | | | (2,887 | ) | | | 1,384 | |
| | | | | | | | | | |
| Cash and cash equivalents, beginning of period | | | | | 41,298 | | | | 37,602 | |
| | | | | | | | | | |
| Cash and cash equivalents, end of period | | | | $ | 38,411 | | | $ | 38,986 | |
| | | | | | | | | | |
| Supplemental disclosure of cash flow information | | | | | | |
| Income taxes paid | | | | $ | 478 | | | $ | 143 | |
| | | | | | | |
Aruba Networks, Inc.
Steffan Tomlinson, +1-408-754-3058
Chief Financial Officer
ir@arubanetworks.com
or
The Blueshirt Group, Investor Relations
Chris Danne, Jill Isenstadt, +1-415-217-7722
ir@arubanetworks.com