Aruba Networks says Q3 will fall short

Summary:At least Aruba isn't alone. Other companies that specialize in wireless enterprise networking have taken their hits.

Aruba Networks, which makes networking systems designed to address bring your own device trends, said that its third quarter will fall short of expectations due to weak orders in April.

In a statement, Aruba said that its revenue for the third quarter will be $144 million to $147 million with a non-GAAP third quarter earnings of 11 cents a share to 12 cents a share. Aruba said its net loss for the third quarter will be 18 cents a share to 20 cents a share.

The company had previously said it would deliver third quarter earnings of 20 cents a share on revenue of $159 million to $161 million.

Aruba CEO Dominic Orr said that customer orders were pushed out in April in the Americas. Europe and Asia. "We attribute this weakness primarily to a challenging economic environment worldwide," said Aruba.

Shares were hammered in early trading as Aruba fell 18 percent. Here's a look at the year-to-date chart.

arun050713

 

At least Aruba isn't alone. Companies that specialize in wireless enterprise networking have taken their hits.

Cowen analyst Matthew Hoffman said:

The negative preannouncement comes on the heels of disappointing quarterly results and/or forward guidance from other WLAN players including: Meru Networks, Motorola Solutions and Ruckus Wireless. Industry leader Cisco has yet to report its April quarter results. We believe a combination of federal budget constraints, enterprise caution on macro uncertainties, and company specific dynamics (service provider softness at Ruckus, lost share at Motorola Solutions) are contributing to softer growth across the sector.

Topics: Networking, Bring Your Own Device, Data Centers

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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