Aruba Networks (ARUN), a provider of network access solutions for the mobile enterprise, saw its loss narrow to $4.09 million or $0.04 a share for the quarter ended Jul. 31, 2014. In the last year period, the company reported a loss of $15.58 million or $0.14 a share. Non-GAAP earnings per share came in at $0.24, when analysts expected $0.23.
Revenue during the financial year surged 32.53 percent to $202.86 million from $153.06 million in the last year period.
Gross margin contracted by 117 basis points over the last year period to 68.95 percent. Total expenses as a percentage of revenues decreased to 95.83 percent from 113.29 percent in the same period last year. Operating margin for the current period stood at positive 4.17 percent as compared to negative 13.29 percent for the previous year period.
The company reported operating income of $8.46 million, compared with operating loss of $20.34 million in the previous year period.
''We are pleased to report strong fourth quarter results, capping a year of significant progress across our key strategic and operational initiatives,'' said Dominic Orr, Aruba's president and chief executive officer.
Michael Galvin, Aruba's chief financial officer, added, ''We delivered record revenues both in Q4 and fiscal 2014 and improved our non-GAAP operating margin by 530 basis points over the last four quarters.''
Cash Flow
Aruba Networks has generated cash of $112.69 million from operating activities during the year, down 26.45 percent or $40.52 million when compared with the last year period. The company has generated 15.46 cents of operating cash flow in every sales dollar for the year, down from 25.53 cents in the same period last year.
The company has generated cash of $79.45 million from investing activities during the year, as against cash outgo of $98.83 million in the last year period. It has made net capital expenditure of $22.17 million during the year, which was higher by 7.32 percent or $1.51 million, from a year ago.
The company's free cash flow accounted for 80.33 percent of operating cash flow for the year, compared with 86.52 percent in the last year period.
The company has spent $218.47 million cash to meet financing activities during the year, as against cash outgo of $43.11 million in the last year period. It has spent net of $237.29 million on repurchase of common stocks.
As on Jul. 31, 2014, the company's cash balance stood at $118.59 million, down 18.17 percent or $26.32 million from Jul. 31, 2013.
Working Capital
Aruba Networks has witnessed a decline in the working capital over the last one year. The company's working capital stood at $244 million as at Jul. 31, 2014, down $124.76 million or 33.83 percent from $368.76 million on Jul. 31, 2013. It registered a decrease in current ratio to 2.02 as at Jul. 31, 2014 from 2.60 on Jul. 31, 2013.
Shares of the company gained $0.15 or 0.75 percent to settle at $20.24 on Tuesday.