Out Fox The $treet

After recent weakness in the Wi-Fi solutions providers, do any of the stocks provide bargains now? Both Aruba Networks (NASDAQ: ARUN ) and Ruckus Wireless (NYSE: RKUS ) have been absolutely crushed recently while Ubiquiti Networks (NASDAQ: UBNT ) has been the lone winner in the sector. One big question is whether the big boy in wireless network gear, Cisco Systems has returned to reclaim market share in the sector. Through most of more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Aruba Networks (ARUN) continues reporting strong revenue growth as customers latch on to the BYOD (bring your own device) enterprise wireless solutions. Unfortunately though, Aruba continues to struggle at turning that revenue growth into earnings per share growth. A main culprit is that shares outstanding continue to soar from 116.2M in Q2'11 to 120M in Q2'12. The company guided towards 122M in Q3'12. It remains very difficult to grow earnings per share with existing shareholders being diluted this quickly. Another issue is the Non-GAAP net income margin dropped from over 17% last year to slightly over 15%. Combined with the diluted share growth explains how a fast growing next generation wireless equipment maker only grows earnings from $0.14 to $0.16 in a year of 35% revenue growth. Strong technology companies typically see earnings jump over 50% with that growth as more revenue drops to the bottom line as the company gets larger. Read full article at Seeking Alpha. ...