Meru Networks Reports Record Fourth Quarter and Full Year 2010 Financial Results
03/02/11 Filed in:Meru
SUNNYVALE, Calif., Feb. 2, 2011 /PRNewswire/ -- Meru Networks, Inc., (Nasdaq: MERU), the leader in 802.11n virtualized wireless LAN solutions for enterprise networking, today announced its financial results for the quarter and full fiscal year ended December 31, 2010.
Fourth Quarter Financial and Operational Highlights
Fourth Quarter Fiscal Year 2010 Financial Results
Total revenues for the fourth quarter of fiscal year 2010 were $22.6 million, up 18% from $19.3 million in the fourth quarter of fiscal year 2009. Products and services revenues (excluding ratable) for the fourth quarter of fiscal year 2010 were $20.5 million, up 34% from the $15.3 million reported in the fourth quarter of fiscal year 2009.
Net loss as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $0.9 million for the fourth quarter of 2010, or $0.06 per basic share, compared to a net loss of $8.0 million, or $20.27 per basic share, for the same period of fiscal year 2009.
Meru reported fourth quarter fiscal year 2010 non-GAAP net income of $305,000, or $0.02 per fully diluted share, compared to$119,000, or $0.01 per fully diluted share, for the fourth quarter of fiscal year 2009. Non-GAAP results for the fourth quarter of 2010 exclude stock-based compensation expense of $1.2 million. Non-GAAP results for the fourth quarter of 2009 exclude stock-based compensation expense of $429,000 and a $7.6 million expense related to the adjustment to the fair value of the warrant liability. Please refer to the reconciliation of GAAP to non-GAAP results provided at the end of this release.
Fiscal Year 2010 Financial Results
Revenues for the fiscal year ended December 31, 2010 were $85.0 million, an increase of 22% from $69.5 million in fiscal year 2009. Products and services revenues (excluding ratable) for fiscal year 2010 were $73.7 million, up 44% from the $51.1 million reported in fiscal year 2009. GAAP net loss for fiscal year 2010 was $36.6 million, or $3.06 per share, compared to a net loss of $17.2 million, or $45.15 per share in fiscal year 2009. Non-GAAP net income for fiscal year 2010 was $859,000, or $0.05per fully diluted share, compared to a net loss of $2.3 million, or $5.44 per fully diluted share in fiscal year 2009.
"2010 was an outstanding year for Meru," said Ihab Abu-Hakima, president and chief executive officer, Meru Networks. "Throughout the year we were able to leverage our product differentiation and innovations to gain market share. We delivered record revenues and expanded our gross margins as more organizations in more verticals around the world adopted Meru's virtualized wireless LAN solution to migrate their edge networking infrastructure to All Wireless networking environments."
Fourth Quarter Business Highlights
Founded in 2002, Meru Networks, Inc, provides a virtualized wireless LAN solution that cost-effectively optimizes the enterprise network to deliver the performance, reliability, predictability and operational simplicity of a wired network, with the advantages of mobility. Meru's solution represents an innovative approach to wireless networking that utilizes virtualization technology to create an intelligent and self-monitoring wireless network, and enables enterprises to migrate their business-critical applications from wired networks to wireless networks, and become all-wireless enterprises. Meru is headquartered in Sunnyvale, CA, and has operations in the Americas, Europe, the Middle East and Asia Pacific. For more information, visit www.merunetworks.com.
- Products and services revenues (excluding ratable) of $20.5 million, up 34% year-over-year.
- Our Non-GAAP gross margin of 65.2% improved 490 basis points year-over-year.
- Total customer install base up approximately 50% year-over-year.
Fourth Quarter Fiscal Year 2010 Financial Results
Total revenues for the fourth quarter of fiscal year 2010 were $22.6 million, up 18% from $19.3 million in the fourth quarter of fiscal year 2009. Products and services revenues (excluding ratable) for the fourth quarter of fiscal year 2010 were $20.5 million, up 34% from the $15.3 million reported in the fourth quarter of fiscal year 2009.
Net loss as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $0.9 million for the fourth quarter of 2010, or $0.06 per basic share, compared to a net loss of $8.0 million, or $20.27 per basic share, for the same period of fiscal year 2009.
Meru reported fourth quarter fiscal year 2010 non-GAAP net income of $305,000, or $0.02 per fully diluted share, compared to$119,000, or $0.01 per fully diluted share, for the fourth quarter of fiscal year 2009. Non-GAAP results for the fourth quarter of 2010 exclude stock-based compensation expense of $1.2 million. Non-GAAP results for the fourth quarter of 2009 exclude stock-based compensation expense of $429,000 and a $7.6 million expense related to the adjustment to the fair value of the warrant liability. Please refer to the reconciliation of GAAP to non-GAAP results provided at the end of this release.
Fiscal Year 2010 Financial Results
Revenues for the fiscal year ended December 31, 2010 were $85.0 million, an increase of 22% from $69.5 million in fiscal year 2009. Products and services revenues (excluding ratable) for fiscal year 2010 were $73.7 million, up 44% from the $51.1 million reported in fiscal year 2009. GAAP net loss for fiscal year 2010 was $36.6 million, or $3.06 per share, compared to a net loss of $17.2 million, or $45.15 per share in fiscal year 2009. Non-GAAP net income for fiscal year 2010 was $859,000, or $0.05per fully diluted share, compared to a net loss of $2.3 million, or $5.44 per fully diluted share in fiscal year 2009.
"2010 was an outstanding year for Meru," said Ihab Abu-Hakima, president and chief executive officer, Meru Networks. "Throughout the year we were able to leverage our product differentiation and innovations to gain market share. We delivered record revenues and expanded our gross margins as more organizations in more verticals around the world adopted Meru's virtualized wireless LAN solution to migrate their edge networking infrastructure to All Wireless networking environments."
Fourth Quarter Business Highlights
- Introduced the AP1000i, the newest entry-level, high-value enterprise access point solution in Meru's product family with breakthrough connectivity, mobility and security and designed to be the industry's simplest to deploy and easiest to manage WLAN solution.
- Notable fourth quarter wins and production deployments include:
- Several top universities in the United States and Asia.
- Two Fortune Global 500 Japanese consumer electronics manufacturers.
- A Fortune 100 financial services insurance company.
- A large regional medical center.
- A world leading solar panel manufacturer.
- Received four notable industry awards for leadership and innovation:
- The 2010 CRN Specialist Vendor of the Year.
- CRN's 2010 Top 100 Healthcare Vendor.
- Tech & Learning's 2010 Award of Excellence, Product of the Year AP320i.
- The "Coolest Product of 2010" Service Assurance Platform, by Health Management Technology.
Founded in 2002, Meru Networks, Inc, provides a virtualized wireless LAN solution that cost-effectively optimizes the enterprise network to deliver the performance, reliability, predictability and operational simplicity of a wired network, with the advantages of mobility. Meru's solution represents an innovative approach to wireless networking that utilizes virtualization technology to create an intelligent and self-monitoring wireless network, and enables enterprises to migrate their business-critical applications from wired networks to wireless networks, and become all-wireless enterprises. Meru is headquartered in Sunnyvale, CA, and has operations in the Americas, Europe, the Middle East and Asia Pacific. For more information, visit www.merunetworks.com.