SUNNYVALE, Calif., April 4, 2011 /PRNewswire/ -- Meru Networks,
Inc., (NASDAQ: MERU), the leader in 802.11n virtualized wireless
LAN solutions for enterprise networking, today provided preliminary
unaudited financial results for its first quarter ended
March 31, 2011.
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Based on preliminary financial information, Meru Networks
expects to report first quarter revenue in the range of
$20.0 million to $20.5 million.
The company had previously provided revenue guidance in the
range of $21.5 million to $22.5
million. First quarter non-GAAP operating expenses,
which excludes the impact of stock based compensation expenses of
approximately $1.3 million, are
expected to be in the range of $14.7 million
to $14.8 million, compared to prior guidance of
approximately $14.8 million.
"In the first quarter we saw a number of transactions, primarily
in the United States, that we
anticipated would close but with the quarter concluded, it is now
apparent that these transactions are experiencing longer than
expected approval processes," said Ihab
Abu-Hakima, president and chief executive officer of Meru
Networks. "This included a lengthening of the budget approval
process for a number of our domestic education customers. We
continue to believe there is a healthy market for wireless LAN
solutions, and accordingly during the first quarter we increased
our investment in our sales teams and channel partners to
capitalize on this opportunity. We plan to continue
increasing our investment in sales coverage and capacity, and
expect to announce a new head of worldwide sales in the coming
weeks."
Today's Conference Call
Meru Networks will be hosting a conference call today,
April 4, 2011 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these
preliminary results. To join the live call, please dial:
18778522926 (domestic) and 1-253-237-1123 (international) and
reference conference ID 57717130.
A telephone replay will be available two hours following the
conclusion of the call for a period of five days and can be
accessed by dialing (800) 642-1687 for domestic callers and
(706) 6459291 for international callers. The call ID for the
replay is 57717130. The live and archived webcast of the
preliminary first quarter fiscal year 2011 financial results
conference call will also be available at the investor relations
section of Meru's website at http://investors.merunetworks.com.
Q1 2011 Earnings Conference Call Information
The results announced today are preliminary and are subject to
change. Meru Networks plans to report final results for the
first quarter on April 27, 2011,
after the market close.
About Meru Networks, Inc.
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.
Cautionary Statement Regarding Forward Looking
Statements
This press release contains forward-looking statements,
including statements regarding the amounts of revenues and
operating expenses for the quarter ended March 31, 2011 that Meru Networks anticipates
announcing when it reports full financial results, and statements
regarding its belief that there will continue to be a healthy
market for wireless LAN solutions. These forward-looking statements
involve risks and uncertainties, including potential discrepancies
between management's preliminary analysis and the final results for
the quarter ended March 31, 2011
expected to be announced on April 27,
2011, as well as risks related to a lengthening approval
customer approval processes, including lengthening of budget
approval processes for domestic education customers, continuing
investment in sales coverage and capacity as well as the
announcement of a new head of worldwide sales, that may further
affect future operating periods. These forward-looking statements
also involve assumptions that, if they do not fully materialize or
prove incorrect, could cause our results to differ materially from
those expressed or implied by such forward-looking statements. The
risks and uncertainties that could cause our results to differ
materially from those expressed or implied by such forward-looking
statements include our ability to react to trends and challenges in
our business and the markets in which we operate; our ability to
anticipate market needs or develop new or enhanced products to meet
those needs; the adoption rate of our products; our ability to
establish and maintain successful relationships with our
distribution partners; our ability to compete in our industry;
fluctuations in demand, sales cycles and prices for our products
and services; shortages or price fluctuations in our supply chain;
our ability to protect our intellectual property rights; general
political, economic and market conditions and events, including
lengthening sales cycles, primarily for domestic education
customers; and other risks and uncertainties described more fully
in our documents filed with or furnished to the Securities and
Exchange Commission. More information about these and other risks
that may impact Meru Networks' business are set forth in our annual
report on Form 10-K filed with the SEC on March 11, 2011, as well as subsequent reports
filed with the SEC. All forward-looking statements in this press
release are based on information available to us as of the date
hereof, and we assume no obligation to update these forward-looking
statements.
Non-GAAP Financial Measurements
In addition to reporting financial results in accordance with
generally accepted accounting principles, or GAAP, Meru reports
non-GAAP net income (loss), which excludes stock-based compensation
expense and adjustments to the fair value of the warrant
liability. Meru believes that its non-GAAP net income
(loss) provides useful information to management and investors
regarding financial and business trends relating to its financial
condition and results of operations. Meru also believes
the non-GAAP measures provide useful supplemental information for
investors to evaluate its operating results in the same manner as
the research analysts that follow Meru, all of whom will present
non-GAAP projections in their published reports. As
such, the non-GAAP measures provided by Meru facilitate a more
direct comparison of its performance with the financial projections
published by the analysts as well as its competitors, many of whom
report financial results on a non-GAAP basis. The
economic substance behind its decision to use such non-GAAP
measures is that such measures approximate its controllable
operating performance more closely than the most directly
comparable GAAP financial measures. For example, Meru's
management has no control over certain variables that have a major
influence in the determination of stock-based compensation such as
the volatility of its stock price and changing interest
rates. Meru believes that all of these excluded expenses
and income do not accurately reflect the underlying performance of
its continuing operations for the period in which they are
incurred, even though these excluded items may be incurred and
reflected in Meru's GAAP financial results.
The material limitation associated with the use of non-GAAP
financial measures is that the non-GAAP measures do not reflect the
full economic impact of Meru's activities. Meru's non-GAAP
measures may be calculated differently than non-GAAP financial
information disclosed by other companies. Accordingly,
investors are cautioned not to place undue reliance on non-GAAP
information.
Media contact:
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Investors contact:
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Neila Matheny
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Ingrid Ebeling or Elaine
Chen
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Engage PR
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Market Street
Partners
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(510) 748-8200, ext.
215
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(408) 215-5658
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nmatheny@engagepr.com
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ir@merunetworks.com
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SOURCE Meru Networks, Inc.