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What: Shares of Aruba Networks (NASDAQ: ARUN ) got hammered today, down by as much as 24% after the company announced preliminary results.
So what: Revenue in the third quarter is now expected in the range of $144 million to $147 million, down from its prior guidance of $159 million to $161 million. Non-GAAP earnings per share should be $0.11 to $0.12, also well short of its prior forecast of $0.20 per share. The company blamed customers pushing out orders.
Now what: CEO Dominic Orr said that customers across the Americas, Europe, and Asia all pushed out order activity, and Aruba believes the weakness is being caused by challenging economic conditions globally. Orr expressed disappointment in the figures. The Street had been expecting $160.5 million in sales and $0.20 per share in adjusted profit. William Blair analyst Jason Ader defended Aruba, saying the deals haven't been lost.
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