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Executives

Steve Pasko – Market Street Partners, Investor Relations

Dr. Bami Bastani – President and Chief Executive Officer

Larry Vaughan – Senior Vice President, Worldwide Sales, Service, and Support

Brett White – Chief Financial Officer

Analysts

Jason Ader – William Blair

Rajesh Ghai – Craig-Hallum

Jayson Noland – Robert W. Baird & Co.

Meru Networks, Inc. (MERU) Q1 2013 Earnings Call April 30, 2013 5:00 PM ET

Operator

Good day, ladies and gentlemen, and welcome to Meru Networks’ First Quarter 2013 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we’ll conduct a question-and-answer session, and instructions will be given at that time. (Operator instructions) As a reminder, this conference call maybe recorded.

At this time, I would like to hand the conference over to Mr. Steve Pasko, Investor Relations from Market Street Partners.

Steve Pasko

Thank you. Thank you for standing by. And welcome to the Meru Networks first quarter 2013 conference call. During today’s presentation, all parties will be in a listen-only mode. Following the presentation, the conference call will be opened for questions. On the call today are Dr. Bami Bastani, President and CEO; Larry Vaughan, Senior Vice President of Worldwide Sales; and Brett White, CFO.

During the course of this call, Meru Networks’ management will make forward-looking statements regarding future events and the future financial performance of the company. These include statements for the expectations concerning market growth and business opportunities, including levels of spending, expectations regarding future revenues, operating expenses, margins, profits, and other financial metrics, plans we develop and offer new products and services and enter new markets, market trends and customer requirements, the success of the company’s business strategy and products and changes in its business model and operations and other matters impacting the company’s financial outlook and future business.

All statements, other than statements with historical facts are statements that can be deemed forward‑looking statements, including any statements of expectations or beliefs. These forward‑looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

We caution you to consider the important risk factors that could cause actual results to differ materially from those in the forward-looking statements in the press release and this conference call. These risk factors are described in our press release and are more fully detailed under the caption Risk Factors in Meru’s most recent Annual Report on Form 10-K as filed with the SEC on March 20, 2013 and the company’s other filings with the SEC.

During this call, we will present both GAAP and non-GAAP financial measures. Non-GAAP measures exclude stock-based compensation expense, litigation reserve expense, amortization of intangible assets related to the company’s acquisition of Identity Networks in the third quarter of 2011, amortization of the fair value of the common stock warrants issued in connection with debt financing and other items outside the ordinary course of business. These non-GAAP measures are not intended to be considered in isolation from, a substitute for or superior to our GAAP results and we encourage you to consider all measures when analyzing Meru’s performance.

For additional information regarding our non-GAAP financial information and most directly comparable GAAP measures, please refer to today’s press release regarding our first quarter 2013 results. The press release have also been furnished to SEC as part of the Form 8-K.

In addition, please note that any forward-looking statements that we make today are based on assumptions we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events except as required by law.

Now, I’ll turn the call over to Dr. Bami Bastani, President and CEO of Meru Networks.

Dr. Bami Bastani

Thank you, Steve. Good afternoon, everyone and thank you for attending our first quarter 2013 conference call. I am very pleased to report that we delivered the highest Q1 revenues in the company’s history. This follows three consecutive quarters of all time record top line performance.

We ended Q1 with a greatly strengthened financial profile, including revenues of $24.7 million, up 27% year-over-year, which was above consensus and at the high-end of our guidance. We improved our gross margin from Q4, reduced OpEx and generated operating cash flow.

We ended the quarter with $35.6 million in cash, which was enhanced by the secondary offering of common stock that we completed in March raising net proceeds of $12.8 million in a highly over subscribed transaction. The nature of the offering and the degree to which people saw new ownership in Meru was a testament to the progress we have made in the past four quarters. Brett will provide more financial details in his section.

We are pleased to have achieved these results especially given that Q1 is historically a seasonally soft quarter for the education vertical, which represents slightly more than 50% of our business annually. I would like to discuss some of the specific factors that are driving our improved financial performance. These include execution against the turnaround strategy that we outlined in April 2012, the strong and unwavering focus on three vertical markets, education, healthcare and hospitality and it greatly enhance the marketing initiatives and improve the sales productivity through strengthened channel partnerships.

Our Q1 2013 results including top line growth and operating expense reductions demonstrate that the turnaround is progressing well. We continue to streamline our business and focus on three key verticals, education, healthcare and hospitality.

According to leading industry analyst firm, such as IDC, these markets are projected to total $1.8 billion in global revenues in 2013 growing to $2.5 billion in 2016. This is almost half of the $4 billion total addressable wireless LAN market. These are verticals in which we believe Meru’s wireless virutalization architecture has a clear advantage over the competition.

Awareness of Meru’s value propositions and unique competitive differentiators are higher than even before, driven by innovative marketing campaigns launched in Q1. These include the launch of our MobileFLEX Architecture, introduction of the Uninterrupted Care Network for healthcare and the launch of the Uninterrupted Learning initiative for education. This campaign highlights the key points of Meru’s differentiation and the straightforward benefit focus turns. Perhaps the most significant announcement we made in Q1 was the introduction of our MobileFLEX Architecture.

MobileFLEX unites all Meru hardware and software solutions and introduces Meru’s Context-aware Application Layers, Apple Bonjour support, enhanced multi-vendor policy enforcement, cloud-focused enhancements and 802.11ac-readiness. MobileFLEX provides our customers the ability to overlay mission critical applications on to existing wired or wireless network and better positions Meru to take maximum advantage of the mobile revolution that is currently underway.

Meru’s advance solutions and products that have recently added to our portfolio are ramping well. Our Identity Manager for BYOD on-boarding is gaining traction in the market. Customers find it very easy to install and manage access, especially when compared to competitor solutions, which require deployment of multiple products required from different companies. Our new AP332 radio dual-band, three streams 802.11n and wireless LAN access point that we’ve launched in Q4 ramped incredibly quickly, and based on its trajectory will soon be a best selling AP in our portfolio.

Our System Director 5.3 operating system launched in Q4 has been quickly adopted by the market and provides the higher level of performance and Wi-Fi network reliability over its predecessors. Additionally, new products that we introduced in Q1 include an entry level 802.11ac radio controller and a single radio 802.11n room access points. Going forward, we will continue to innovate and intend to lead the next wave of transition in the wireless LAN market, centered on the IEEE 802.11ac emerging standard.

As we have discussed in the past the advent of 802.11ac gives Meru and its customers’ clear advantages over the competition. The standard is uniquely suited to Meru’s single channel architecture, whether it’s fewer available channels and higher speeds.

Q1 also brought us some very interesting engagements and deployments. Some of which highlight the drivers for the recognition that Meru is receiving in the market today. For example in Q1, Microsoft selected Meru to provide Wi-Fi for its 30,000 square foot exhibit at CeBIT, the world’s largest Telecommunication Tradeshow. The Meru virtualized Wi-Fi infrastructure performed flawlessly in that highly contentious RF environment.

As the Microsoft executive noted, last year, our wireless network completely collapsed, that is why this year we decided to go with new wireless technology from Meru. And we’re happy, everything is working marvelously well and that we can use the wireless exactly as we had planned.

To close, let me review the forces and conditions that I believe; we’ll continue to fuel the success of our turnaround. Meru sits at the pivotal point of a rapidly growing wireless LAN market and remains focused on three key verticals that constitute a large portion of that market. We have a well-trained and highly focused sales force and we’re committed to developing productive channel partnerships and channel programs to multiply our sales reach.

We continue to deliver new innovative products that are highly differentiated from the competition and our new marketing initiatives make our value proposition clear than ever before.

I will now turn the call over to our Senior Vice President of Worldwide Sales, Larry Vaughan for more on our vertical markets and channel strategy. Larry?

Larry Vaughan

Thank you, Bami. I appreciate the opportunity to discuss the continued and I’d say accelerated development of marketing sales and channel support activities for our target verticals.

In the first quarter of 2013, we launched a number of initiatives that resonated well with current customers, prospects, partners as well as our employees. Meru’s differentiation well illustrated by the MobileFLEX Architecture launched in March, lies in its simplicity and also on its ability to deploy it in a wide variety of configurations from traditional multi-channel to our preferred single channel or channel layered approach and from controller base to virtualize depending on the customers needs. We see increasing numbers of Meru customers deploying our virtualized controllers running on VMware and private cloud environments to support hundreds of access points.

With MobileFLEX, Meru has a seamlessly unified and flexible solution set. Our Identity Manager solution has proven to act as a Trojan horse in competitive accounts. Users of Identity Manager who have wireless LAN solutions from Cisco, Aruba and other vendors have begun engaging Meru when conducting upgrades and expansion. The strategic planning and execution of marketing programs at Meru has never been stronger. This is leading to raise the awareness in education that is reflected in the discussions we are having with customers and prospects.

Let me give you a few examples, at HIMSS 2013 in New Orleans this year, which is the healthcare industry’s largest tradeshow attended by more than 34,000 people. Meru exhibited and launched the Uninterrupted Care Network or UCN. UCN enabled hospitals to offer wireless support for a range of life-critical, mission-critical and consumer-critical devices and applications using a single wireless network.

UCN enhances hospitals efforts to improve patient safety, clinician productivity and patient satisfaction. UCN resonates well with healthcare providers because it meets a real need. The need to separate services and applications of varying levels of criticality in very definitive ways. This is accomplished using Context-aware Application Layers or CALs that were introduced as part of the MobileFLEX architecture.

Customers who needs of our target verticals are using these new capabilities to their advantage. Healthcare customers in the quarter included to run at a major healthcare center in Germany, a major hospital in Japan; network expansion at a healthcare center at Canada and an 802.11n upgrade at a hospital in the UK.

We also watched our uninterrupted learning initiative at BETT 2013, the UK’s largest education tradeshow. Uninterrupted learning is focused on delivering Wi-Fi that is purpose built to enable educators and students to focus on academics rather than network infrastructure.

Education customers in the quarter included a new deployment at a large private university in Japan, large network expansions at major universities in North Carolina and Texas and 802.11n upgrade at University in Ohio, and continued expansion for the fourth largest school district in the United States with more than 392 schools and 345,000 students.

The quarter saw a strong group of new customers come onboard, along with the number of existing customers who added to their current deployments. New customers included a major exhibition center in France, a prominent four-star hotel in Dubai, major hotel chains in Turkey, South Africa, Singapore and Germany and the largest clothing retailer in Japan.

Scaling revenue means scaling the channel, supporting the channel and in sending the channel, all of which I’m pleased to say, we are doing an alignment with our stated plans. We announced significant investments in our channel program at the end of Q4 2012 with the goal of expanding the strength and capabilities of our top partners so they become bigger, stronger and even more self sufficient. I’m pleased to announce that this effort is paying off and that we expect that it will continue to do so.

We have created new channel programs as we previously discussed, the levels being authorized gold and platinum that delineates the expertise of each reseller together with a deal registration program that recognizes and rewards partners for generating and bringing opportunities to Meru. All of this adds up to the ability to scale and demonstrate proof of our commitment to the channel, something that many companies claim, but few of them up to. I’d like to thank our customers, our partners, our sales teams and our employees around the world for another great quarter.

And with that, I’ll turn the call over to our CFO, Brett White. Brett?

Brett White

Thanks Larry. Please note that the following discussions of our operating results will be on a non-GAAP basis, which excludes stock-based compensation expense, amortization of acquisition related intangibles, amortization of the fair value of a common stock warrant issued in connection with the debt financing since 2013 and 2012 and litigation reserve expense and CEO transition costs in 2012. For a reconciliation of GAAP to non-GAAP results, please refer to the press release issued today and the supplemental financial information, which is posted on our Investor Relations website.

As Bami mentioned, we are very pleased with our Q1 financial performance, including delivering record first quarter revenues and accelerating product revenue growth rate, a fourth sequential quarter of operating expense reductions, a highly successful secondary offering and a $1 million of positive cash flow from operations.

Total revenue for the first quarter was $24.7 million, up 27% year-over-year. Products revenues was $20.6 million, up 30% from Q1 last year. Support and services revenue was $4.1 million, up 15% from Q1 last year. Approximately 62% of Q1 revenues were from the Americas, 27% were from EMEA, and 11% from Asia Pacific. Excluding the impact of ratable revenue, Americas grew 39%, EMEA grew 18% and Asia Pacific grew 2% year-over-year. 97% of our shipments were through indirect channels, the remaining 3% direct.

Total non-GAAP gross margins in Q1 were 63.5%, which is a 150 basis point improvement from last quarter and inline with the guidance that we provided you in our last earnings call. In on our last earnings call, we again committed to further reduce operating expenses sequentially and are pleased to report that we accomplished this goal.

Total non-GAAP operating expenses were $17 million, down 21% from Q1 from last year and down 12% from last quarter. The year-over-year decrease relates primarily to a 26% decrease in sales and marketing expenses and a 20% decrease in G&A.

Our Q1 non-GAAP net loss was $2 million or $0.10 per basic and diluted share better than the guided loss range of $0.18 to $0.25 and a 77% reduction from the Q1 loss last year. Share count used for Q1 non-GAAP EPS was approximately 19.6 million shares; included in the share count for Q1, our 3.45 million shares sold in our secondary offering which closed March 4.

We finished the quarter with $35.6 million in cash, cash equivalents and short-term investments and $8.9 million of debt. This includes $12.8 million of proceeds from the common stock offering net of underwriter fees. DSO was 37 days driven by strong collections which allowed us to generate $1 million of operating cash flow in Q1. We continue to believe that DSO in the 45 to 50 day range is more reasonable and likely in future quarters.

We ended the quarter with full time equivalent head count of 378 and net decrease of 13 from last quarter. Deferred revenue finished the quarter at $17.1 million, up 11% from Q1 last year. Our customer account rose to 7600. As we mentioned in our last call, we count customers based on the buying entity. For example, many of our customers like school systems purchased products for hundreds or even thousands of individual schools, yet we count them as one customer.

Many other vendors in our market account each of the individual schools as customers. If we were to adopt this methodology, our customer account would exceed 11,500. Now on to guidance, Q2 is traditionally a seasonally stronger quarter for our business than Q1 and therefore we are expecting a sequential growth in revenue of approximately 3% to 15% of revenue range of $25.5 million to $28.5 million.

We expect non-GAAP gross margins to be in the 63.5% to 64.5% range, a sequential improvement from Q1. We expect gross margins to continue to improve through out the year on the way to our long-term goal of 65% to 68%.

We expect operating expenses to increase sequentially from Q1. Based on these estimates, we expect Q2 non-GAAP net loss of $1.2 million to $3.0 million or $0.05 to $0.14 per share based on the share count of approximately 22.2 million shares. This represents an over 50% reduction in the non-GAAP net loss from Q2 last year at the mid-point.

This concludes our prepared remarks. I’ll turn the call, operator can you please open up the call for questions.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Jason Ader from William Blair.

Jason Ader – William Blair

Thank you, hi guys.

Dr. Bami Bastani

Hi Jason.

Jason Ader – William Blair

Okay, so you just said on the annual guidance, are you guys reiterating that, where do we stand there?

Brett White

Yeah, so the last quarter, we gave a guidance range of $110 million to $120 million for the year and I think that still makes sense.

Jason Ader – William Blair

Okay. And we should assume, I guess the seasonal standpoint, the September quarter tends to be a stronger quarter than June based on education. Is that right or how do we think about September?

Brett White

Yeah, I think over the last couple of years, September quarter has been slight uptick from Q2 and it’s generally education related.

Jason Ader – William Blair

Okay. And then could you guys comment on sort of the environment you’re seeing a lot of companies, less numbers, we’ve seen a lot of commentary on sales cycles being extended due to the macro environment many, any time, what you saw in terms of bookings and what kind of momentum, you had exiting the March quarter.

Dr. Bami Bastani

Jason this is Bami. We look at our environment by looking at our pipeline and our Salesforce.com and then Larry can comment on that little bit later, add some color onto that.

Excluding certain areas, we see pressure but also we are in the booking ship business and we just delivered a strong Q1. So in this business you take one quarter at a time and the confidence come from the pipeline that you have in your Salesforce.com.

Again with the understanding that it is a booking ship business, so most of our business develops during the quarter and gets shipped during the quarter. Larry you want to add some more color to that.

Larry Vaughan

Sure Bami, that’s exactly right. We continue to be a very sophisticated user of Salesforce.com for our opportunity management forecasting system. We progressively over the last several quarters have seen the pipeline not only grow in long numbers but in the quality of deals and that’s what gives us the optimism for the guidance for the year.

Jason Ader – William Blair

Okay, thank you guys.

Operator

Our next question comes from Rajesh Ghai from Craig-Hallum.

Rajesh Ghai – Craig-Hallum

Thanks and congratulations on the strong quarter and continuing turnaround.

Larry Vaughan

Thank you

Rajesh Ghai – Craig-Hallum

Just wanted to follow-up on the previous question on the demand environment considering that more than 50% of the revenue comes from education vertical and we are seeing some pretty strong government austerity measures being put into place. How do the demand environment look in general in that vertical and looking at your guide, up about 10% of the mid-point sequentially, themes are little lighter compared to what you have done sequentially in previous years. So I just wanted to understand, is that conservative there or is that a weaker environment that you’re seeing out there?

Dr. Bami Bastani

This is like everybody else, our peer group, we do see some headwinds and at the same time, we see success. So we have the kind of a trade-off both – those two conditions. The underlying factor to our guidance goes back to the salesforce.com, which again I’d like to compliment Larry, he runs a very tight shift and then the thing it weekly, daily and (inaudible) very closely, which is reflection of the customers orders coming in and various deals at various stages. So I would like to have Larry to add some more color about the environment and in education as well.

Larry Vaughan

Sure, thanks Bami. You asked the two part question and I’ll take the first part of that the education industry. We obviously keep an eye on any headwinds that maybe out there with funding and government funding. I will tell you though that in the education area, especially with the universities, the application usage has dramatically shifted from a few years ago, which was predominantly, tax paying in e-mails to strong amount of video and that exponentially increases the need for Wi-Fi.

So I would tell you that we’re seeing a lot of interest in both our customer and our prospect base to keep up with these demands and while I think that at on the other hand, we watch the headwinds. I think there is a lot of demand for the usage that’s going on in the higher education and we certainly helped to take advantage of that.

Rajesh Ghai – Craig-Hallum

Okay, and made a good comment upon the guide, obviously lighter than in previous years in terms of sequential growth.

Dr. Bami Bastani

Well, it’s lighter in sequential growth on last year just because Q1 was so weak last year and Q2 was strong. So I think if you kind of normalize last Q1 and Q2 sequentially and year-on-year, I think we’re in good shape.

Rajesh Ghai – Craig-Hallum

Okay and – was done and specifically, I think the line that got my attention was a $3 million decline in sales and marketing. So Bami in the past you’ve mentioned that you had sales capacity to get to about $40 million per quarter without adding anymore head count with this decline and sales and marketing, do you still expand with that capacity or sales capacity or to get your capacity, you would have to invest at some point of time in the future?

Dr. Bami Bastani

We were in line and the reduction that you saw in terms of the sales and marketing side was primarily driven, we came from Q4 of north of $28 million to seasonally softer Q1 as we had predicted and explained of $24.7 million. So that carries commissions with it. Also end of the year, you always have accelerators and so forth. And we also had much better control on T&E.

So all-in-all, begin lower commissions, better expense control. From a head count actually we’ll see that – we will be adding heads and then the sweet spot for me is head count between 370 and 400 and then we are basically in that sweet spot. As we have heard, we also have attrition, the plus minuses. So the answer to your question is we have the sales capacity that we announced.

Rajesh Ghai – Craig-Hallum

Okay. And my last question is potentially around Identity Manager. I think, Larry, you mentioned that it was like a Trojan horse in competitor accounts. It sounds very similar to strategy that Aruba’s was adopting with ClearPass. How different is Identity Manager compared to ClearPass? And how many deployments do you have at this point of time? And how many pilots do you have, you can provide some color on that? That will be great. Thank you.

Larry Vaughan

Sure. Let me just talk about the market to start with. Obviously, both guest and secure provisioning and many environments is really a critical and important. The fact that the legacy of identity management worked on many different types of customer competitor’s equipment was a big plus for us upon our acquisition. So because it’s already deployed in so many different places and continues to be deployed and not only Meru install base accounts put our competitors as well. It really as I mentioned is a Trojan horse for us and a lot of people are reaching out to ask questions of us and other things we have that can complement the identity management and it’s certainly helped us make headway and do some competitive accounts.

Dr. Bami Bastani

Yeah, the way I would characterize and Larry covered that in his part, we find it easier to deploy. And on the other side, there is always trade-offs. So I would say, ClearPass may have some other features or the year to deploy and then it becomes the customer choice.

Generally, when you’re dealing with education market, they really like the simplicity, when you deal with hospitality, they like the simplicity of on boarding guests and that’s where we shine. Our system also works on wired and wireless variety of networks. It is fully integrated, it was within, putting together a calculation of couple of companies so, it runs smooth. It’s ease of doing business.

Rajesh Ghai – Craig-Hallum

Okay, thank you. Carry on the good work.

Larry Vaughan

Thank you.

Operator

Thank you. (Operator Instructions) Our next question comes from Jayson Noland from Robert W. Baird.

Jayson Noland – Robert W. Baird & Co.

Great. Thank you. Just to clarify, I believe most of your education spend is exposed to state and local, which is the June fiscal year-end?

Larry Vaughan

That’s right. And also that’s primarily the U.S. internationally you see some spend in July and basically the big, I think the biggest K12 spend is June and July getting ready for summer deployments and internationally, they do some deployments over the fall and the winter as well and then higher add is more evenly spread throughout the year.

Jayson Noland – Robert W. Baird & Co.

Okay. And Brett was the sequester commentary, did that have any influence in what you see or is it a different thing entirely? Does it include any increased uncertainty?

Brett White

Well, you know as Bami mentioned, I think there is a, maybe I think you qualify there is a bit of a headwind that kind of everybody in this market is seeing but you know, our spend is on K12 is more likely to be around in a local bond measures, private financing or E-Rate and so far, E-Rate, we haven’t seen that impacted by sequester. So, we’re cautious but I think quite optimistic.

Jayson Noland – Robert W. Baird & Co.

Okay. That makes sense. Maybe this is for Larry, the commentary on – focus on sales force and marketing and Brett, OpEx coming up sequentially. Are you targeting specific verticals EDU, healthcare, hospitality, or is it just more of a general increase in OpEx?

Brett White

So why don’t I take the OpEx side and then Larry can speak to the vertical piece. So OpEx, obviously in Q1 came down quite significantly. We had some really good – our commissions came by down just on a volume basis, on a commission rate basis. And then we had just really really good management on TNE on travel and entertainment expense and I am not planning on that continuing.

I think we’ll probably do back to our normal run rate plus, I think we’re going to had some head count or going to put some more commissions are going to be coming up, commission rates are going to be coming up, so all those things will come to drive our OpEx higher in Q2; and Larry, if you want to take the vertical question?

Larry Vaughan

Yeah, sure, you mentioned in regards to our three verticals education, healthcare and hospitality, which Bami has mentioned. We talked about a couple of quarters in a row now of our strategic focus on that. Obviously, if you look at market data, those are three of the four biggest industries in Wi-Fi.

What we’re really finding over the last several quarters is customers are more and more talking about applications and the application of the technology to help them solve problems as oppose to the speeds and feeds on the technology. They really like the fact that we’re taking an industry approach that we’re focused on the solutions that can help them solve their problems and again as I mentioned, the discussions these days with customers are much more application orientated and they were even six or nine months ago.

Dr. Bami Bastani

Yeah, Jason, I wanted to just make a comment on the OpEx. So you can count on very tight fiscal controls on that, and it’s all within the boundary conditions that we have established a guidance that we’ve done in the past saying that we are in the right headcount zone. If the revenue goes up, naturally commission goes up. And when you have success with your channels, you’ll do more MDF and market development fund and things like that. But these are all is built on our revenue growth.

Jayson Noland – Robert W. Baird & Co.

Understood and last question from me for Brett. Breakeven appears possible by Q4 of this year and certainly full year of 2014. Is that the right way to think about it or any additional commentary or targets you can share?

Brett White

Well I think we can reiterate what we talked about for the last several quarters is we think breakeven is there are $30 million of revenue at 65% gross margins and I think if you kind of think about how the trajectory that we’re planning for the year, we still expect to pass-through that in the second half of the year.

Jayson Noland – Robert W. Baird & Co.

Okay, great. Thank you.

Operator

Thank you. (Operator Instructions) And I’m no showing no one else in queue at this time. Well I would like to hand the conference over to Dr. Bastani for any closing remarks.

Dr. Bami Bastani

Thank you, operator and thank you everyone one for participating in this call.

Operator

Ladies and gentlemen thank you for participating in today’s conference. This concludes our program for today. You may all disconnect and have a wonderful day.

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