Ahead of the Bell: Aruba Networks

Shares of Aruba Networks rise in premarket on strong fiscal 4th-qtr results

Associated Press

NEW YORK (AP) -- Shares of Aruba Networks rose before Friday's opening bell after the wireless communications company posted better-than-expected quarterly results.

For the quarter ended July 31, Aruba said it posted a loss of $16.3 million, or 14 cents per share, compared with a loss of $3 million, or 3 cents per share, in the same quarter of 2012.

Excluding one-time items, profit was 12 cents per share for the recent quarter.

Revenue rose 10 percent to $153.1 million from $139.2 million.

Analysts, on average, expected a profit of 11 cents per share on $149.4 million in revenue, according to FactSet.

Aruba President and CEO Dominic Orr said the company exceeded its own expectations and added a record number of new customers.

Janney Capital markets analyst Bill Choi backed his "Neutral" rating and $20 fair value estimate for the stock.

Choi said the company continues to heavily invest in research and development, which has somewhat stymied its profitability growth. But the company expects growth to return to previous levels in the second half of fiscal 2014, he said.

In premarket trading, shares of Aruba Networks Inc. rose 67 cents, or 4 percent, to $18.75.

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