Aruba Networks Shares Up 6% As Q2 Results Top Estimates

(RTTNews) - Shares of Aruba Networks, Inc. (ARUN) gained six percent in extended trading on Thursday after the distributed enterprise network solutions provider reported results for the second quarter that topped analysts' expectations.

However, the company also reported a loss for the quarter compared to a profit last year, despite double-digit revenue growth, reflecting higher stock-based compensation expense and charges.

Separately, the company also announced that its board of directors have authorized the repurchase of up to an additional $200 million of its outstanding common stock under its existing share repurchase program.

"Our revenue achievement marked another record quarter. We saw strong sales execution across our 802.11ac and Instant solutions, and our ClearPass Access Management System had a standout quarter," President and CEO Dominic Orr said in a statement.

The Sunnyvale, California-based company posted a net loss of $10.70 million or $0.10 per share for the second quarter, compared to net income of $4.99 million or $0.04 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $21.35 million, or $0.18 per share, compared to $27.34 million or $0.22 per share in the year-ago quarter.

On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share for the quarter. Analysts' estimates typically excludes special items.

Revenues for the quarter increased 14 percent to a record of $176.36 million from $155.36 million from the same quarter last year, and topped twenty-three Wall Street analysts' consensus estimate of $167.57 million.

Product revenues for the quarter grew to $141.76 million from $130.90 million, as well as professional services and support revenues increased to $34.60 million from $24.46 million in the year-ago quarter.

The company noted that it secured two new Fortune 100 ClearPass customers. Gartner also validated the company's leadership position in the Network Access Control market by positioning Aruba as a leader in the 2013 Network Access Control Magic Quadrant.

Looking ahead, Orr added, "We are executing well against our growth plan and are confident in the trajectory of our business."

ARUN closed Thursday's regular trading session at $19.88, unchanged on a volume of 4.11 million shares. However, the stock surged $1.27 or 6.02% in after-hours trading.