Out Fox The $treet

Aruba Networks ( ARUN ) has long been an interesting stock. The provider of next-generation network access solutions for mobile enterprises had a serial issue with diluting away the strong revenue growth. It reported Q2 2013 earnings that exceeded the market estimates, sending the stock higher in aft er-h ours trading. Previous research for this article (see Aruba Networks: Revenue Growth Disappears In Thin Air ) had suggested ignoring this stock until revenue growth actually flowed to the bottom line. Back then; the company had 34% revenue growth in the December 2011 quarter that lead to earnings only increasing from $0.14 to $0.16. Has management finally changed the tune to suit shareholders? Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclosure page for more details. 

Editors Choice When Ruckus Wireless (NYSE: RKUS ) went public in mid-November, the stock immediately crashed from an opening price of $15 all the way to close at $12.25 for an 18% loss on the initial day. A month later the stock has soared to a high of $20 highlighting the issues with the IPO market. The market for IPOs remains as arcane as decades ago with institutional investors blocking out individual 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. ...