To streamline operations, Aruba said that it is reducing its operating expenses by approximately 10%, through a combination of a reduction in work force and reducing other non-headcount related expenditures. Net expense associated with the reduction in work force, which is primarily for severance and severance benefits, is expected to total approximately $1.2m, which the company expects to incur in the fiscal second quarter.
Aruba expects these cost reduction measures to result in pretax savings of approximately $2 million to $2.5 million in the fiscal second quarter of 2009 and $5m to $6m in the second half of fiscal 2009.
The company reported that GAAP net loss was $6.38m, or $0.08 per basic and diluted share, for the first quarter of fiscal 2009, compared to a GAAP net loss of $639,000, or $0.01 per basic and diluted share, for the first quarter of fiscal 2008. However, the GAAP net loss was almost entirely down to non-cash charges.
Dominic Orr, president and CEO of Aruba, said: Customers have clearly become more focused on the ways in which they can reduce operating expenses and increase productivity. We believe that Aruba is well positioned to help them achieve these goals.
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