Aruba Networks, Inc.NASDAQ
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  • Mar. 2, 2015, 8:49 AM
    • As rumored last week, HP (NYSE:HPQ) is buying Aruba Networks (NASDAQ:ARUN) in an all-cash deal for $24.67 per share. The transaction is expected to close in H2 of HP's fiscal 2015.
    • Previously: Bloomberg: HP in talks to buy Aruba Networks (Feb. 25)
    • ARUN -1.5% premarket to $24.44.
    • HP +0.6%
    | Mar. 2, 2015, 8:49 AM | 5 Comments
  • Feb. 27, 2015, 9:15 AM
    | Feb. 27, 2015, 9:15 AM | 9 Comments
  • Feb. 26, 2015, 6:25 PM
    • Aruba Networks (NASDAQ:ARUN) guided on its FQ2 CC (webcast) for FQ3 revenue of $208M-$218M and EPS of $0.26-$0.30 vs. a consensus of $215.7M and $0.27.
    • In its earnings release, Aruba expressed optimism it would benefit from higher funding for the FCC's E-Rate broadband program for schools/libraries later this year, but also cautioned "the impact of E-Rate is uncertain" for FQ3.
    • Before soaring yesterday on a Bloomberg report stating HP is in talks to buy the company, Aruba had been pressured by reports of salesforce turmoil that were believed to be affecting near-term sales. Also: Many enterprise tech peers have offered light guidance due to forex pressures.
    • Shares now +32% since the Bloomberg report broke.
    • FQ2 results, PR
    | Feb. 26, 2015, 6:25 PM
  • Feb. 26, 2015, 4:05 PM
    • Aruba Networks (NASDAQ:ARUN): FQ2 EPS of $0.30 beats by $0.03.
    • Revenue of $212.9M (+20.7% Y/Y) beats by $2.68M.
    • Shares +1.06%.
    | Feb. 26, 2015, 4:05 PM
  • Feb. 25, 2015, 5:35 PM
  • Feb. 25, 2015, 3:16 PM
    • Bloomberg reports HP (HPQ -10.1%) is in talks to acquire enterprise Wi-Fi hardware/software provider Aruba Networks (ARUN +22.5%), and that a deal could be announced as soon as next week. Aruba has skyrocketed on the report, and has taken rival Ruckus (RKUS +4.7%) higher with it. Aruba's market cap is now around $2.5B.
    • Aruba is the enterprise Wi-Fi market's #2 player - behind Cisco (NASDAQ:CSCO), which towers over the space - and HP is also in the top-5. IDC estimates Cisco, Aruba, Ruckus, and HP respectively had Q2 2014 enterprise Wi-Fi shares of 46.8%, 11.8%, 6.2%, and 4.5%.
    • HP, whose shares have plunged today due to an FQ1 revenue miss and soft guidance, saw its total networking revenue drop 11% Y/Y in FQ1 - "execution issues" in the U.S. and China were blamed. The IT giant has suggested it's open to making enterprise acquisitions ahead of its PC/printing spinoff.
    | Feb. 25, 2015, 3:16 PM | 5 Comments
  • Feb. 12, 2015, 11:03 AM
    • Cisco (NASDAQ:CSCO) beat FQ2 estimates on the back of 8% Y/Y product growth (aided by favorable comps), offered in-line guidance (better than feared, given forex pressures), and reported a 5% increase in product orders. Enterprise, SMB, and public sector orders respectively rose 10%, 8%, and 7%, and service provider orders dropping 1% (compares with a 10% FQ1 service provider drop).
    • Cisco still isn't modeling a rebound in service provider or emerging markets demand for several quarters, and forecasts global service provider capex will be down by a mid-single digit % in 2015. But it's more optimistic about enterprise, public sector, U.S., and EMEA demand.
    • Telecom and networking equipment vendors, many of whom have been hit hard by capex pressures, are rallying following Cisco's numbers, as are a couple of component/chip suppliers. The Nasdaq is up 0.7%.
    • Notable gainers include Alcatel-Lucent (ALU +4.7%), Aruba (ARUN +3.4%), Ruckus (RKUS +5.1%), Sonus (SONS +3.4%), Extreme Networks (EXTR +3.4%), Brocade (BRCD +1.9%), Adtran (ADTN +3%), Infoblox (BLOX +2.7%), Finisar (FNSR +2.1%), Cavium (CAVM +2%), Ixia (XXIA +1.9%), and Mavenir (MVNR +3.4%).
    • Cisco's 18% Y/Y wireless product sales growth appears to be going over well with Aruba and Ruckus investors, and its 11% switching growth with Extreme and Brocade investors.
    | Feb. 12, 2015, 11:03 AM | 19 Comments
  • Feb. 3, 2015, 4:04 PM
    • Three weeks after JMP cited the effects of a major salesforce restructuring as a reason for downgrading Aruba (NASDAQ:ARUN), Pac Crest's Ryan Hutchinson cites it as a reason for cutting his target by $5 to $22, albeit while maintaining an Outperform rating. Shares closed regular trading down 3.4%.
    • Hutchinson reports Aruba's restructuring is "causing indigestion in the sales force," and that bookings softened during the middle of FQ2 (the January quarter). "While management has tried to improve execution, our recent conversations with resellers and distributors suggest another mixed fiscal second quarter. Our checks indicate that the restructured compensation structure Aruba introduced in the fall may be hurting sales morale."
    • He's cutting his FY15 and FY16 estimates, but remains bullish on a belief Aruba's valuation has priced in negative sentiment, and that the company's issues are transitory. Hutchinson is also confident Aruba can keep grabbing enterprise Wi-Fi share from Cisco.
    • FQ2 results arrive on Feb. 26.
    | Feb. 3, 2015, 4:04 PM | 1 Comment
  • Jan. 26, 2015, 11:53 AM
    • Citi has launched coverage on Ubiquiti (UBNT -2.9%) and Aruba (ARUN -1.5%) at Neutral, and fellow Wi-Fi hardware vendor Ruckus (RKUS +3.6%) at Buy.
    • Ruckus, upgraded recently by Northland Securities, reports on Feb. 10.
    • Ubiquiti, which gets a majority of its revenue from non-Wi-Fi products, reports on Feb. 5. Shares tumbled last month following a bearish Goldman launch.
    | Jan. 26, 2015, 11:53 AM | 6 Comments
  • Jan. 12, 2015, 11:48 AM
    • "Checks suggest that the steps Aruba Networks (NASDAQ:ARUN) has taken to cut costs and optimize sales efficiency may have frustrated some of the sales organization, likely impacting sales execution," writes JMP's Erik Suppiger, downgrading the Wi-Fi equipment hardware vendor to Market Perform.
    • The changes include "cutting compensation and raising sales targets for many of the top-performing sales people," something Suppiger thinks may have "impacted morale and demotivated some sales reps."
    • His FQ2 and FQ3 estimates have been slightly lowered. Nonetheless, Suppiger still likes Aruba's product positioning, and (given heavy sales hiring) expects the company to "eventually work through" its current issues.
    • Rival Ruckus (NYSE:RKUS) is following Aruba lower on a day the Nasdaq is down 0.6%. Aruba is close to its 52-week low of $16.05.
    | Jan. 12, 2015, 11:48 AM
  • Nov. 24, 2014, 10:56 AM
    • Optimistic about enterprise Wi-Fi growth and viewing Friday's post-earnings selloff (caused by light guidance) as a buying opportunity, Raymond James has upgraded Aruba (ARUN +2.6%) to Outperform. Its target is $25.
    • BofA/Merrill downgraded Aruba to Underperform on Friday; Dougherty and others defended the company.
    | Nov. 24, 2014, 10:56 AM
  • Nov. 21, 2014, 2:11 PM
    • Believing Aruba's (ARUN -13.1%) soft FQ2 guidance reflects tough competition and slowing industry growth, BofA/Merrill has downgraded the enterprise Wi-Fi hardware vendor to Underperform. Its target is $21.
    • Dougherty is defending Aruba, arguing 802.11ac adoption will drive growth - the firm notes only ~10% of Aruba's base has migrated. Dougherty also expects share gains (aided by ClearPass and Aruba Instant) and new channel partners to help Aruba's cause, and considers guidance conservative.
    • After opening higher, rival Ruckus Wireless (RKUS -6.7%) is following Aruba lower. As is Aerohive, which was downgraded today by Macquarie.
    | Nov. 21, 2014, 2:11 PM
  • Nov. 21, 2014, 12:46 PM
    | Nov. 21, 2014, 12:46 PM | 1 Comment
  • Nov. 21, 2014, 9:13 AM
    | Nov. 21, 2014, 9:13 AM
  • Nov. 20, 2014, 5:42 PM
    | Nov. 20, 2014, 5:42 PM | 2 Comments
  • Nov. 20, 2014, 5:04 PM
    • Aruba Networks (NASDAQ:ARUN) guides on its FQ1 CC for FQ2 revenue of $208M-$212M and EPS of $0.26-$0.27 vs. a consensus of $211.8M and $0.27.
    • FQ1 results, PR
    | Nov. 20, 2014, 5:04 PM