Aruba Networks plunges on revised outlook

AP News
Posted: May 07, 2013 9:27 AM

SUNNYVALE, Calif. (AP) — Shares of Aruba Networks fell sharply before the opening bell Tuesday after the company nearly halved its third-quarter adjusted profit expectations and cut its outlook for revenue as well, just a week before it reports earnings.

Shares of the wireless communications company were halted briefly after tumbling by double digits.

The company cited a delay in orders from customers as it released new projections.

"We attribute this weakness primarily to a challenging economic environment worldwide," said president and CEO Dominic Orr.

The company now expects quarterly adjusted profit of 11 to 12 cents per share, about 20 cents per share. The company predicted revenue of between $144 million to $147 million, down $159 million to $161 million.

Analysts surveyed by FactSet expect earnings of 20 cents per share on revenue of $160.4 million.

The company's stock fell $3.85, or 17.5 percent, to $18.20 before the markets opened.

Aruba Networks Inc., based in Sunnyvale, Calif., will report full third-quarter results on May 16.