Aruba Networks Plunges 23% On Warning

| About: Aruba Networks, (ARUN)

Aruba Networks (NASDAQ:ARUN) shares plunged in after hours trading after the company warned that results for its fiscal second quarter ended January would come in shy of expectations.

Aruba said it now expects revenue for the quarter of $40 million to $41 million, with a GAAP EPS loss of 4-5 cents a share; the company expects to break-even on a non-GAAP basis. The Street had expected revenue of $51.5 million, and a profit of five cents non-GAAP.

In a statement, Aruba CEO Dominic Orr said the company in the quarter “experienced a significant decrease in revenues in the Federal vertical in conjunction with the delay in the approval of the Federal budget.” He expects the federal business to pick up in the second half of the fiscal year.

Orr also said that the company has seen “an elongated sales cycle” at some customers. And he said that a transition to a two-tier distribution system has taken longer than expected.

In after hours trading, Aruba is down $1.76, or 23%, at $6.

Earlier: Aruba: Caris Downgrades, Citing Shrinking IT Budgets

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