Company facing tough competition
Aruba Networks, Inc. (NASDAQ:ARUN) is working in partnership with Microsoft Corporation (NASDAQ:MSFT) on Microsoft’s Lync, an online communication software product. This product is designed mainly for corporate environments and will provide them with high-quality audio and video during voice and video conferencing over a Wi-Fi network. Aruba is currently the only “Microsoft network infrastructure optimization partner,” ensuring that Microsoft Corporation (NASDAQ:MSFT) Lync is given the highest priority on the company’s Wi-Fi network. Corporate customers now often prefer working on mobile devices such as laptops and tablets that connect to a Wi-Fi network instead of using traditional wired network connections. With the increasing use of mobile devices in corporate businesses, Aruba Networks, Inc. (NASDAQ:ARUN) is taking initiatives to troubleshoot and optimize its Wi-FI network through application integrated platforms (APIs).
Aruba Networks, Inc. (NASDAQ:ARUN) will benefit only in the short term from being the only optimization partner, however, as Microsoft Corporation (NASDAQ:MSFT) is planning to extend its partnership to other companies in the future. Aruba is expecting total revenue of $150 million in the fourth quarter of 2013, which is a bare-minimum change from its last quarter earnings of $147 million.
Recently, the company announced an acquisition of Meridian Applications, a software company that provides Wi-Fi and navigation services at public places like hospitals, museums, shopping malls, railway platforms, colleges, and convention centers. Aruba Networks, Inc. (NASDAQ:ARUN) will use Meridian’s Wi-Fi software platform to provide these services, making it easy for mobile device users to use the Internet and navigate within large indoor areas. This service will give store owners in the mall an opportunity to introduce applications for smartphones that will help customers to locate their stores. With this acquisition, the company is expecting a rise in its revenue which is currently almost flat.
Conclusion
Riverbed Technology, Inc. (NASDAQ:RVBD)’s Acquisition of OPNET Technologies, Inc. (NASDAQ:OPNT) will take some more quarterly results to show profitability, and with the plan of increasing market penetration with WAN optimization business it is expected to show profitability in the long term.
Palo Alto Networks Inc (NYSE:PANW)’s new technology in the firewall segment and the paid version of the Wildfire product gives the company a good opportunity to book profit for the next quarter. I recommend a buy on this stock.
Aruba Networks, Inc. (NASDAQ:ARUN) currently being the sole optimization partner for Microsoft Corporation (NASDAQ:MSFT) and the acquisition of Meridian will help the company to build a strong presence in the market. The company is taking initiative to become a market leader.
Madhu Dube has no position in any stocks mentioned. The Motley Fool recommends Riverbed Technology, Inc. (NASDAQ:RVBD). The Motley Fool owns shares of Microsoft Corporation (NASDAQ:MSFT) and Riverbed Technology.
The article How Will 2013 Bode for These 3 Tech Companies? originally appeared on Fool.com.
Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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