Aruba Networks Q1 Loss Widens, But Tops View; Shares Surge 9%

(RTTNews) - Aruba Networks Inc. (ARUN) Thursday reported a wider loss for the first quarter, notwithstanding an 11 percent growth in revenues, due largely to higher costs.

Nevertheless, adjusted earnings for the quarter trumped analysts' expectations, while revenues also surpassed estimates. Following the news, Aruba shares surged over nine percent in after-hours trade on the Nasdaq.

Aruba's revenues for the first quarter grew 11 percent to $160.93 million from $144.48 million a year ago. Twenty-six analysts had consensus revenue estimate of $157.58 million for the quarter.

Sunnyvale, California-based Aruba's first-quarter loss widened to $7.8 million or $0.07 per share from $0.8 million or $0.01 per share a year ago.

Adjusted earnings for the quarter were $0.16 per share compared to $0.18 per share last year. On average, 27 analysts polled by Thomson Reuters expected earnings of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.

Chief Executive Dominic Orr said, "In the first quarter, we surpassed our revenue expectations and executed well on our initiatives to grow our sales and channel engine."

Total cost of revenues increased to $48.6 million from $42.1 million last year, and operating costs rose to $118.0 million from $97.8 million a year ago.

Gross margins for the period dropped to 69.8 percent from 70.8 percent last year.

ARUN closed Thursday's regular trade at $17.20, up $0.77 or 4.69%. The stock further gained $1.55 or 9.01% in after-hours trade.