Aruba: Channel Gains, Product Mix Highlight Strong Q3

Aruba's message of "network rightsizing" is resonating with both channel partners and customers, its executives say, and is what helped the company to healthy returns in its fiscal third quarter.

On Wednesday, Aruba reported revenues of $69 million, up 51 percent from $45.8 million in the same quarter a year ago. It reported a quarterly loss of $5.3 million at 6 cents per share, compared to a loss of $5.8 million on 7 cents per share a year ago.

Excluding one-time items, Aruba earned 8 cents per share. That beat financial analysts' estimates by a penny, according to Thomson Reuters.

In its earnings call, the company said it added 700 new customers in the quarter, bringing its total to about 10,000, and that the adoption of 802.11n wireless solutions is spurring that growth. Other key moves included its planned acquisition of Azalea Networks, which is expected to close in August.

"The message has resonated very well across the channel and the end user base," said Michael Tennefoss, head of strategic marketing for Aruba, in an interview with CRN. "The transition from wired to wireless is happening fast, and Wi-Fi based devices like laptops have now surpassed wired desktop units in many cases. They're hungry for mobile clients and hungry for methods of connecting into their networks and we're there with high performance solutions to make that happen."

Bob Bruce, who joined Aruba as vice president of worldwide channel sales in December 2009, said that Aruba channel partners were quick to recognize trends in the secure mobile edge and were also expanding their practices to focus on network management. remote access and other wireless tools.

"The areas we attack and focus on are beginning to take root," he said.

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