Aruba -3% AH; job cuts announced

Though the company just posted an FQ4 beat on the back of 33% Y/Y revenue growth, Aruba (NASDAQ:ARUN) is launching a "cost optimization plan that will reduce certain positions, and shift other positions to lower-cost, talent-rich locations."

Due to the plan, Aruba is setting an FY15 (ends July '15) op. margin target of 21%-22%. FQ4 op. margin was 20%.

Product revenue +34% Y/Y to $167.6M. Aruba claims "significant market share gains" on the back of strong demand for 802.11ac Wi-Fi access points, as well as the company's Instant (controller-free Wi-Fi) and ClearPass (network policy software) products.

Ahead of the job cuts, GAAP R&D spend rose 14% Y/Y to $43.4M, and sales/marketing 16% to $72.1M. Cost of revenue rose 38%, exceeding revenue growth.

CC at 4:30PM ET, guidance should be provided.

FQ4 results, PR

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