Ruckus Wireless Reports Third Quarter 2015 Financial Results

RuckusWireless

Revenue for the third quarter of 2015 was $99.0 million, an increase of 7.3% from the second quarter of 2015 and 16.4% from the third quarter of 2014.

GAAP net income was $1.7 million for the third quarter of 2015, compared with GAAP net income of $0.8 million for the second quarter of 2015 and $3.6 million for the third quarter of 2014. GAAP operating income was $4.0 million for the third quarter of 2015, compared with GAAP operating income of $1.4 million for the second quarter of 2015 and $6.1 million for the third quarter of 2014.

Non-GAAP net income was $13.3 million for the third quarter of 2015, compared with non-GAAP net income of $9.2 million for the second quarter of 2015 and $12.6 million for the third quarter of 2014. Non-GAAP operating income was $13.7 million for the third quarter of 2015, compared with non-GAAP operating income of $9.4 million for the second quarter of 2015 and $13.1 million for the third quarter of 2014.

GAAP diluted net income per share was $0.02 for the third quarter of 2015, compared with $0.01 for the second quarter of 2015 and $0.04 for the third quarter of 2014. Non-GAAP diluted net income per share was $0.13 for the third quarter of 2015, compared with $0.09 for the second quarter of 2015 and $0.13 for the third quarter of 2014.

“I am pleased with our results and execution in the quarter, as we continued to expand our technology leadership in the market and drove strong growth in the Americas and Europe,” said Selina Lo, president and chief executive officer, Ruckus Wireless. “In the past month, we announced Ruckus Unleashed, our controller-less architecture, providing us with another lever for growth into the SMB segment. And last week, we announced the acquisition of Cloudpath Networks, giving us a certificate-based BYOD and policy solution which we believe is more secure and easier to use than competitive password-based solutions, and which we expect to be an important technology differentiator for Ruckus in education and other verticals going forward.

Business & Financial Highlights

  • The company announced UnleashedTM access points, based on a new controller-less Wi-Fi architecture that can reduce ownership costs and simplify deployment of enterprise-class Wi-Fi for small business environments.
  • Announced the acquisition of Cloudpath Networks, Inc., a privately-held provider of certificate-based security software for BYOD onboarding and policy management. Cloudpath has a particularly strong business and reputation in the education market, as well as customers in enterprise, healthcare, government, and service provider verticals.
  • Announced a collaboration with Brocade to deliver gigabit class smart Wi-Fi to Chico Unified and Souderton Area School Districts.
  • 11ac access points accounted for 74% of Ruckus access point product sales in the third quarter, up from 71% in the second quarter of 2015.
  • The company reported 16.4% year-over-year revenue growth; Americas revenue grew 23.2%, EMEA revenue grew 24.1% and APAC revenue declined 5.3% as compared to the third quarter of 2014.
  • Non-GAAP operating margin was 13.9%, an increase compared with 10.2% in the second quarter of 2015, but a decrease compared with 15.4% in the third quarter of 2014.
  • Added 16 new service provider end-customers in the third quarter of 2015, bringing the total service provider end-customer base to approximately 250.
  • Added approximately 4,800 enterprise end-customers in the third quarter of 2015, an all-time high, bringing the total enterprise end-customer base to approximately 61,000.
  • For the third year in a row, Ruckus was named the winner of the SMB hardware category in CRN’s Annual Report Card (ARC) survey of thousands of value-added resellers across the United States, taking the top honors over competitors in areas including product innovation and support.
  • Maintained our position as the #1 market share leader in Service Provider Wi-Fi as identified by the Dell’Oro Group in its Wireless LAN Report 2Q15.
  • Won two awards at the 2015 Wireless Broadband Alliance’s Wi-Fi Global Congress: Best Wi-Fi Enabled Consumer Electronics Device and/or Service and the WBA Chairman Award – Technology Partner Category.

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