Aruba: WLANs to Replace LANs

Rich Tehrani : Communications and Technology Blog -
Rich Tehrani
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Aruba: WLANs to Replace LANs

Aruba Networks just announced 17% year-over-year growth for its fiscal second quarter showing mobility is a bright spot for the future regardless of the economy. Revenues for the fiscal second quarter of 2009 were $47.7 million, compared to the $40.6 million reported in the fiscal second quarter of 2008. GAAP net loss for the fiscal second quarter of 2009 was $6.8 million, or $0.08 per share, compared to a net loss of $3.5 million, or $0.04 per share, in the fiscal second quarter of 2008.

The company reduced expenses by $2.1 million in the quarter but other charges for the quarter affected GAAP earnings, causing them to decrease. Non GAAP net income doubled from $.01 to $.02 year-over-year.

The reason for the growth is a bit surprising. Dominic Orr, President and CEO of the company says customers are switching to wireless connections over wired as they are more flexible, take up less space and cost less.

Although it is early to know the future, it seems the trend could continue when the economy improves. This could be the year where wired LANs become the legacy plumbing of office networks. Of course video and other high-bandwidth apps may present a challenge for wireless networks not designed correctly but for the majority of offices, WLANs could become the primary networking option.

This development is just another example of how a few million homeowners not paying their mortgages coupled with incompetent bankers and rating agencies can have unintended consequences in sectors which are unrelated.

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