x
Carrier WiFi

Aruba Files for IPO

Enterprise wireless LAN startup Aruba Networks Inc. (Nasdaq: ARUN) has filed for a long-anticipated IPO and plans to raise up to $100 million with the float.

Aruba filed its S-1 late Friday with the Securities and Exchange Commission (SEC) . Goldman Sachs & Co. and Lehman Brothers are the lead underwriters. Aruba expects to list on the Nasdaq under the ticker symbol "ARUN."

The Sunnyvale, Calif.-based vendor has long said that it wants to go public. Unstrung first reported in November that the firm was gearing up to file with the SEC. (See Aruba Plots Imminent IPO and Aruba Flirting With IPO?)

Aruba is currently the largest startup in the enterprise wireless LAN market. It consistently ranks third in the overall market after Cisco Systems Inc. (Nasdaq: CSCO) and Symbol Technologies Inc. (NYSE: SBL). (See Enterprise WLAN Market Up 19%.)

Aruba makes the bulk of its money through sales of WLAN controllers (or switches) and managed access points. Aruba says that it made revenues of $24.5 million in the three months ended October 31. Aruba's financial year ends on July 31, so for 2006 it reported total revenues of $72.5 million, compared to $12 million for the fiscal year of 2005.

The company, however, has yet to turn a profit. It reports net losses of $32.6 million and $12 million for its 2005 and 2006 fiscal years, respectively, and a $4.5 million loss for the three months ended October 31, 2006.

"We have a history of losses and have not achieved profitability on a quarterly or annual basis, and we anticipate that we will incur net losses for at least the next several quarters," the firm notes in its SEC documents.

Probably the largest single deal that Aruba has on its books right now is its contract to unwire Microsoft Corp. (Nasdaq: MSFT)'s campuses around the world. (See Aruba Wins Microsoft Deal.) Aruba's total revenues selling to Microsoft "exceed $3.5 million" and will be recognized after completion of the IPO.

In return, Aruba says it will issue $3.5 million in common stock to Microsoft, based on the initial offering price, upon completion of its IPO.

It generally takes three months or more for a company to actually IPO after its first S-1 filing.

— Dan Jones, Site Editor, Unstrung

Ibor 12/5/2012 | 3:32:17 AM
re: Aruba Files for IPO not surprised they cut a deal w msft. I remember the fud spread that msft pulled from airespace or nortel because airespace was acquired by csco. I would guess from this that aruba used its commitment to ipo and, allow msft to share, to win it. Aruba also has a better product for massive deployments, but msft is sophisticated enough to run any of these products.

Whats most interesting to me is the comparison to riverbed. They filed in the summer with numbers that were half of arubas and are now trading at $2B+ - in a smaller market with more competition. I am interested to see if aruba bubbles like that. I give them credit for holding out. gutsy.

I also think cisco made a grave error letting threse guys out of the box. I recall Chambers saying they will never allow another Juniper. That boat may have just sailed. simply filing an s-1 is a huge marketing coup and forces evals and consideration that would just otherwise have gone to cisco.

joset01 12/5/2012 | 3:32:11 AM
re: Aruba Files for IPO RE: not surprised they cut a deal w msft. I remember the fud spread that msft pulled from airespace or nortel because airespace was acquired by csco. I would guess from this that aruba used its commitment to ipo and, allow msft to share, to win it. Aruba also has a better product for massive deployments, but msft is sophisticated enough to run any of these products.


Certainly seems that way.

--DJ
lrmobile_strungup 12/5/2012 | 3:32:09 AM
re: Aruba Files for IPO I don't think Riverbed is a fair comparison. They're in two completely different sectors and success in one does not equate to success in another. The results will be interesting to see for sure.
Ibor 12/5/2012 | 3:32:08 AM
re: Aruba Files for IPO You're right, it is not a fair comparison. To riverbed's benefit, they do not have a csco trying to kill then with every fiber of their being. That implies less risk than aruba faces.

On the other hand Aruba is in the busines of replacing every single endpoint on the entire internet (as opposed to every wan end point as per riverbed). That is a much bigger market and they did report twice riverbed's revenues s-1 to s-1.

the market never lies; it will decide soon enough.

The hottest networking startup I expect to file in the next few months is infinera. Awesome. Blows both of these very good companies away. I love seeing this public market return. Maybe our valley is back.
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE