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Aruba Networks, others cite delayed deployments in results

Aruba Networks, Inc. said that that it expects its revenues for the quarter ended April 30 to fall below its guidance, citing delays in customer orders.

“In April, we saw a push out in customer orders across the Americas, Europe and Asia,” said Dominic Orr, president and CEO of Aruba. “We attribute this weakness primarily to a challenging economic environment worldwide.”

Despite continued rollout of advanced networks in the U.S. and around the world, multiple network companies have experienced slow-downs in the first quarter of this year. Wi-Fi provider Ruckus Wireless did not meet its guidance due in part to delayed deployments in the Americas.  Several companies, including wireless backhaul provider Ceragon, said that longer sales cycles impacted their results last quarter.

Ira Palto, president and CEO of Ceragon, said that it’s 18% year-over-year drop in revenue in the first quarter was influenced by operators trying to get a handle on their business models and network evolution.

“We are not seeing carriers cancelling or reducing the scope of their planned projects, and the delays in closing deals relate mainly to operator hesitation during a period of reevaluating business models with a network architecture transition on the horizon,” he said.

Interphase, which manufactures connectivity products for customers including Alcatel-Lucent, Samsung, Genband and Oracle, reported quarterly results that “reflect a continued weakness in the telecom market worldwide,” according to CEO and president Gregory Kalush. Interphase earned revenues of $3.3 million, which was $734,000 less than the same period last year. Both service revenues and telecom and enterprise product revenues were down, with the biggest loss in the product area

Aruba expects revenue for its fiscal third quarter of 2013 to be between $144 million to $147 million, significantly below the company’s expectations of $159 million to $161 million. Non-GAAP net income is expected to be in the range of $0.11 -$0.12 per share compared with guidance of about $0.20 per share.

The company will release full results on May 16 after the market closes.

ABOUT AUTHOR

Kelly Hill
Kelly Hill
Kelly reports on network test and measurement, as well as the use of big data and analytics. She first covered the wireless industry for RCR Wireless News in 2005, focusing on carriers and mobile virtual network operators, then took a few years’ hiatus and returned to RCR Wireless News to write about heterogeneous networks and network infrastructure. Kelly is an Ohio native with a masters degree in journalism from the University of California, Berkeley, where she focused on science writing and multimedia. She has written for the San Francisco Chronicle, The Oregonian and The Canton Repository. Follow her on Twitter: @khillrcr