Mandy Hassall, Director, Six Degrees Ltd
T: +44 (0)1628 480280/+44 (0)7855 359889
Meru Networks, http://www.merunetworks.com/, leader in virtualised 802.11 enterprise wireless networking, has announced that President and Chief Executive Officer Ihab Abu-Hakima will transition out of the company during the next six months. Mr. Abu-Hakima will work closely with the company’s Board of Directors to identify a successor specifically suited to lead the company into its next phase of growth.
“I feel I have achieved my personal and corporate goals, and given the strong momentum at Meru, now is the right time to transition to a new CEO to drive the company to the next level,” said president and CEO Ihab Abu-Hakima. “I am leaving Meru at a time when I believe our long-term business outlook has never been stronger. We are rapidly expanding our customer base worldwide, growing our revenue, expanding our base of dedicated distribution partners, developing a rich pipeline of new products and adding to our employee base. I will continue to actively lead the organisation while the Board of Directors commences a search for a new CEO.”
Additionally, Meru disclosed that based on preliminary financial information, it expects to report third quarter revenues above analysts’ consensus estimates. Following record revenues of the second quarter, Meru expects to report record third quarter revenues in the range of $23.2 to $23.7 million compared to prior guidance of $22 to $24 million. The company expects product and services revenues growth (excluding ratable revenues) to be 18% to 20%, compared to the third quarter of fiscal 2010.
Non-GAAP gross margins, which exclude the impact of stock based compensation expenses, are expected to be in the range of 63.0% and 63.5%, within the guided range of 63% to 64%.
The third quarter non-GAAP net loss, which excludes the impact of stock based compensation expenses and amortisation of intangible assets related to the company’s acquisition of Identity Networks, is expected to be in the range of $0.22 to $0.24 per basic and diluted share compared to prior guidance of a net loss of approximately $0.17 to $0.23 per basic and diluted share. These results include one month of expenses and the associated acquisition costs of Identity Networks which were not included in the earnings per share guidance.
“We are very pleased to deliver another strong quarter, driving our quarterly revenues to our highest level ever,” said Abu-Hakima. “In addition, we continue to see broad-based strength across our target markets, which we believe is further evidence of the demand for our network in control wireless LAN solution.”
An archived webcast of the preliminary third quarter fiscal year 2011 results conference call is available at the investor relations section of Meru's website at http://investors.merunetworks.com.
About Meru Networks
Founded in 2002, Meru Networks provides a virtualised wireless LAN archsitecture that cost-effectively delivers the performance, reliability, predictability and operational simplicity of a wired network, with the advantages of mobility. Meru's solution represents an innovative, yet standards-based approach to wireless networking that utilises virtualisation technology to create an intelligent and self-monitoring wireless network, enabling enterprises to migrate their business-critical applications from wired networks to wireless networks, to become all-wireless enterprises. Meru's solutions have been adopted in all major industry vertical markets, including Fortune 500 enterprises, healthcare, education, retail, manufacturing, hospitality and government. Meru is headquartered in Sunnyvale, Calif., and has operations in the Americas, Europe, the Middle East and Asia Pacific.
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