* Q1 adj EPS 4 cents beat est by a cent
* Q1 revenue up 10 pct
* Sees Q2 sales up 22-26 pct to $58-$60 mln
* Sees Q2 adj EPS about $0.05 vs $0.04 est (Recasts; adds outlook from conference call, analyst comments)
By Shrutika Verma
BANGALORE, Nov 19 (Reuters) - Wireless LAN vendor Aruba Networks Inc ARUN.O posted quarterly results that edged past Wall Street expectations, helped by higher revenue at its two segments, and forecast better-than-expected second-quarter results.
“As we enter our seasonally weak second quarter, our pipeline is robust,” a company executive said on a conference call with analysts.
The company, the No. 2 wireless LAN provider after Cisco Systems Inc (CSCO.O), expects earnings of about 5 cents a share, excluding items, on revenue of $58 million to $60 million.
Analyst on an average were looking for earnings of 4 cents a share, excluding items, on revenue of $57.3 million, according to Thomson Reuters I/B/E/S.
“They continue to do really well in their core verticals — industrial, healthcare and government,” Brigantine Advisors analyst Joanna Makris said.
The analyst also said that Aruba continues to gain share from Cisco.
For the first quarter ended Oct. 31, net loss widened to $24.7 million, or 28 cents per share, from $6.4 million, or 8 cents, a year earlier.
Excluding a one-time litigation expense and other items, the company earned 4 cents a share. Revenue rose 10 percent to $57.6 million.
Analysts on average expected earnings of 3 cents a share, excluding exceptional items, on revenue of $56 million.
“The challenge with Aruba going into the quarter was the expectations for a beat and a raise. Obviously the stock had a very healthy run into the numbers and the quarter was a modest beat,” Makris said.
While the company reached a legal settlement with Motorola Inc MOT.N, legal expenses did hurt general and administrative expenses by about a penny per share in the first quarter, Aruba said.
Earlier this month, the company paid Motorola $19.8 million to settle certain long-drawn patent disputes that were a drag on its earnings. [ID:nBNG116249]
Aruba supplies equipment for secured wireless network used in offices.
The company’s shares were down 3 percent at $9.31 in trading after the bell. They closed at $9.58 Thursday on Nasdaq. They have more than doubled in value in the last six months. (Editing by Deepak Kannan)