Thursday after the bell, enterprise mobility solutions provider Aruba Networks, Inc. (ARUN) posted a wider loss for the first quarter, compared to the year-ago primarily due to a significant litigation settlement expense.
Aruba recorded first quarter net loss of $24.7 million or $0.28 per share, compared to net loss of $6.4 million or $0.08 per share in the year-ago period; primarily due to a $19.75 million litigation settlement expense. First quarter profit was also negatively impacted by $7.8 million in non-cash stock-based expenses and $1.2 million in amortization expense of acquired intangible assets.
Excluding the litigation settlement and non-cash expenses, non-GAAP profit increased 206% to $4.1 million from $1.4 million in the prior-year period. On a per share basis, non-GAAP net income increased to $0.04 from $0.02.
On an average, 13 analysts polled by Thomson Reuters expected earnings of $0.04 for the quarter. Analysts' estimates typically exclude one-time items.
Aruba posted a 10% year-over-year increase in revenue to $57.6 million from $52.4 million. Analysts expected first-quarter revenue of $56.02 million.
Segment-wise, revenue from products increased to $47.19 million from $43.86 million and revenue from professional services and support rose to $10.14 million from $8.13 million. However, revenue from ratable products and related professional services and support declined to $0.25 million from $0.44 million.
Aruba's operating expenses increased to $63.41 million from $40.36 million in the year-ago period, primarily driven by the settlement expense. Total cost of revenues slightly declined to $18.59 million from $18.69 million in the year-earlier quarter.
ARUN closed Thursday's regular trading session at $9.58, down $0.24, on the Nasdaq.
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