SCCyberworld

Friday, June 12, 2009

ARUBA NETWORKS REVENUES INCREASE 8% YEAR-OVER-YEAR FOR FISCAL THIRD QUARTER OF 2009

Kuala Lumpur, June 11, 2009 – Aruba Networks, Inc. (NASDAQ: ARUN), a global leader in wireless LANs and secure mobility solutions, today released financial results for its fiscal third quarter ended April 30, 2009.

Revenues for the fiscal third quarter of 2009 were $45.8 million, an increase of 8% over the $42.6 million reported in the fiscal third quarter of 2008. GAAP net loss for the fiscal third quarter of 2009 was $5.8 million, or $0.07 per share, compared to a net loss of $6.2 million, or $0.08 per share, in the fiscal third quarter of 2008. GAAP results for the fiscal third quarter of 2009 included $5.5 million of non-cash stockbased expenses and $1.2 million of amortization expense of acquired intangible assets.

Non-GAAP net income for the fiscal third quarter of 2009 increased $2.1 million from the fiscal third quarter of 2008 to $1.0 million, or $0.01 per share. Non-GAAP net income for these periods excludes the impact of non-cash stock-based expenses and amortization expense of acquired intangible assets in all periods and, for the fiscal third quarter of 2008, acquisition related severance expense.

“In the third quarter we achieved 8% year-over-year revenue growth and won a number of large customers which should continue to benefit our results in coming quarters,” said Dominic Orr, president and chief executive officer of Aruba. "Demand was driven by both existing customers and the addition of more than 500 new customers, across a broad range of industries. In this difficult economic environment, enterprises and organizations are rethinking their current IT infrastructure and we believe that wireless will increasingly be used as a replacement for and/or cost-saving complement to wired networks. We believe Aruba Networks offers both existing and potential customers the lowest total cost of ownership, fully integrated security and proven scalability with some of the world’s largest organizations.”

“Sales were solid across all of our geographies,” said Steffan Tomlinson, Aruba’s chief financial officer. “We were pleased to have increased our operating leverage, as we reduced operating expenses in both actual dollars and as a percentage of sales from the immediately preceding quarter and the same period last year. We enter our fourth fiscal quarter with improved visibility from the prior quarter and $111.8 million of cash and short term investments, with no debt.”

Recent Highlights

Highlights from the quarter include:

• Positioned in the Gartner Magic Quadrant as a Leader - Aruba was again positioned in the Leaders Quadrant in the 2008 Magic Quadrant for Wireless LAN Infrastructure.

• Awards - Aruba won numerous awards during the quarter including Network World's "Best of the Tests" award (AirWave Wireless Management Suite), Unified Communications Magazine's "2008 Product of the Year” award (Remote Access Point technology), Network Computing's “Wireless Infrastructure Product of the Year” award (802.11n access points), and Verizon’s 2008 Supplier Excellence Award for IT Products.

• Product Development - Aruba announced three Real-Time Location Systems (RTLS) for tracking assets, devices, and Wi-Fi tags within a facility, lowering operating and deployment costs.

• Wins and Deployments - New customer wins and/or deployments included Ithaca College, Universitas Telefonica, MultiCare Health System, Raytown C-2 School District, Norwood School, Boston Medical Center, Liberty University, Glenelg Country School, University of Tokyo, and the New South Wales Department of Education and Training.

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