Aruba Networks delays 2012 filing, stock falls
NEW YORK (AP) — Shares of Aruba Networks fell more than 7 percent on Tuesday after the company delayed the filing its full-year results because of internal control issues.
THE SPARK: Aruba, which makes equipment for wireless communications networks, disclosed in a filing with the Securities and Exchange Commission that it needs more time to verify that its accounting data is correct and reliable for the fiscal year ended July 31
Aruba said that it does not expect any adjustments to its fiscal fourth-quarter financial results. It expects to be able to file its full-year results within the 15-day extension period.
THE ANALYSIS: Rohit Chopra of Wedbush Securities said in a client note that even though Aruba Networks doesn't expect any results to be restated, it has introduced new risk with the delayed filing announcement, which will hurt its shares.
Chopra said the company's long-term fundamentals are still intact and the analyst continues to view the company as a winner over a multi-year period.
Chopra maintained an "Outperform" rating and a $24 price target on the stock.
SHARE ACTION: Aruba Networks Inc.'s stock dropped $1.62, or 7.2 percent, to $20.76 in afternoon trading. The stock has traded in a range of $12.36 to $25.55 over the 52 weeks, and closed Monday up about 21 percent since the start of the year.