Enterprise/carrier Wi-Fi vendors Aruba (ARUN -3.2%) and Ruckus (RKUS -4%) each had a rough day after Ubiquiti disclosed its enterprise sales rose only 1% Q/Q in the March quarter (following several quarters of strong growth), and blamed it on mix/ASP pressure for its UniFi Wi-Fi hardware line - in particular, stronger sales for cheaper 802.11n systems relative to more powerful 802.11ac systems.
Ruckus, more carrier-dependent than Aruba, rallied last week on a Q1 beat and solid guidance. Nonetheless, shares fell to new 52-week lows today. Aruba reports on May 22, and enterprise Wi-Fi leader Cisco on May 14.
The companies are counting on rising carrier Wi-Fi deployments, aided by the adoption of the HotSpot 2.0 standard (enables automatic network discovery/login), to help drive growth. ABI Research forecasts hotspot deployments will grow to 7.1M in 2015 from 4.2M in 2013, fueled by strong Asia-Pac activity.