Ruckus Wireless reports disappointing revenue for Q1

Fri, 1st May 2015

FYI, this story is more than a year old

In the first quarter of 2015 Ruckus Wireless had a reported revenue of $82.1 million, which is an increase from the first quarter of 2014.

In a statement, Ruckus Wireless said revenue for the first quarter of 2015 ended March 31 was impacted by large deals in the company's North American enterprise business taking longer to close, and by continued delays in education spending in advance of the upcoming release of E-Rate funding.

Overall, GAAP net loss was $0.6 million for the first quarter of 2015, compared with GAAP net income of $0.3 million for the first quarter of 2014.

GAAP operating loss was $1.5 million for the first quarter of 2015, compared with GAAP operating income of $1.0 million for the first quarter of 2014.

Furthermore, non-GAAP net income was $6.5 million for the first quarter of 2015, compared with non-GAAP net income of $7.0 million for the first quarter of 2014.

In a similar fashion, non-GAAP operating income was $6.8 million for the first quarter of 2015, compared with non-GAAP operating income of $7.2 million for the first quarter of 2014.

Ruckus reported that GAAP diluted net loss per share was $0.01 for the first quarter of 2015, compared with $0.00 for the first quarter of 2014.

Finally, non-GAAP diluted net income per share was $0.07 for the first quarter of 2015 and 2014.

In this quarter, Ruckus introduced the ZoneFlex R710, the world's first 802.11ac Wave 2 capable Smart Wi-Fi access point, capable of delivering aggregate data rates over 2GBs per second.

The company also launched the ZoneFlex H500, an 802.11ac indoor wall switch access point designed for offering converged services in hotel guest rooms, student residences, and multiple dwelling units.

This quarter also brought the announcement that Ruckus' 802.11ac technology is being integrated into Nokia Networks' Flexi Zone small cell indoor and outdoor solutions.

At the beginning of 2015, Ian Whiting joined the Ruckus team as chief commercial officer, responsible for leading the company's go-to-market strategy and sales execution.

Throughout the quarter 19 new service provider end-customers were added, bringing the total service provider end-customer base to over 220, and approximately 3,700 enterprise end-customers were added, making the total enterprise end-customer base to approximately 52,000.

Selina Lo, Ruckus Wireless president and chief executive officer, says, "While we made progress that positions us for long-term growth, our revenue for the quarter was impacted by several large enterprise deals in North America taking longer to close, and continued delays in education spending in advance of the upcoming release of E-Rate funding.

“Despite that, we continue to expect the upcoming E-Rate funding to be an important driver for long-term revenue growth."

"We were first to announce an 802.11ac Wave 2 access point which will differentiate us in the market. We also added Ian Whiting to our team as Chief Commercial Officer to drive our go-to-market strategy and sales execution," Lo says.