Aruba Networks, Inc (ARUN) recently posted their financial results for the second quarter of the 2015 fiscal year, which ended on the 31st of January, 2015. The company generated revenues that were at a record high, namely $212.9 million, which was higher than analyst expectations of $210.22 million. This figure also represented a growth of 21 percent over the same quarter of the previous fiscal year, when revenues came in at $176.4 million.
The company generated a non-GAAP net income of $33.8 million, which works out to earnings per diluted share of $0.3. These figures are, again, higher than estimates, which were for earnings per share of $0.27 and net income of $21.4 million. Earnings per diluted share were also higher than the same quarter of the previous year, when they came in at $0.18.
Aruba Networks had a GAAP net income of $5.7 million, which equated to earnings per diluted share of $0.05. This is compared to the same quarter of a year ago, when the company generated $10.7 million in GAAP net losses, which worked out to a loss per share of $0.1.
Aruba registered a GAAP gross margin of 71.7 percent, while their non-GAAP gross margin worked out to 73.4 percent.
The company’s non-GAAP operating margin for the quarter worked out to 23.3 percent, whereas the GAAP gross margin came in at 10.3 percent.
Dominic Orr, the Chief Executive Officer of Aruba Networks, stated that the company was pleased to be able to offer strong results in Q2, showing how well the execution of their strategic plan was proceeding. These results, he explained, were supported by ongoing growth in the important regions they operate in, as well as solid performance on a year over year basis in their Federal vertical, continuing success in the penetration of Global 2000 and improved traction in their SME business. The team feels that the company is in a good position to leverage continuing WLAN growth and the possible opportunities generated by the higher level of E-Rate funding expected later in the year as well the repeated 802.11ac refresh cycle.
Aruba Networks saw their shares advance by almost 1 percent during after-hours trading. It should be noted that the shares had already seen a 22 percent increase after it was reported that Hewlett-Packard was in negotiations to purchase the company. The deal is expected to be announced this week. Hewlett-Packard saw their shares slide by 10 percent.
Aruba Networks’ stock has been trading between $15.65 and $24.97 per share over the past 52 weeks. The company has a market cap of $2.72 billion.