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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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Ruckus Showcases Future of Public Wi-Fi

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Ruckus Wireless today announced that it has worked with the City of San Jose and San Jose Marriott to deploy a Hotspot 2.0 network for the Wireless Broadband Alliance (WBA) Wi-Fi Global Congress event, taking place this week at the San Jose Convention Center. The new technology enables automatic and secure Wi-Fi roaming onto participating Wi-Fi hotspots for subscribers from more than 30 operators around the world. Using the venue-provided Wi-Fi, attendees can get seamless connections as they move from the convention center and hotel to downtown restaurants and even the San Jose airport.

This first-of-its-kind deployment features collaboration across a local city government, a major international airport and global hospitality leader – offering a glimpse of the future as Hotspot 2.0 technology continues to roll out across all geographies. By enabling Hotspot 2.0, the existing networks deployed by the City of San Jose and the San Jose Marriott now support roaming with dozens of major service providers. When attendees step off a plane, go to a downtown restaurant, relax in their room or attend a Wi-Fi Global Congress (#WGCSJ) session, Hotspot 2.0 will be there to transparently and securely connect them to the network.

“Hotspot 2.0 is the future of Public Wi-Fi. It elegantly solves the issues of connection frustration and lack of security inherent to legacy Public Wi-Fi,” said Kash Shaikh, vice president of marketing and business development at Ruckus Wireless. “We thank the City of San Jose and San Jose Marriott for their partnership in demonstrating the potential applications and business opportunities with Hotspot 2.0. The implications for the hospitality industry are profound, both for their loyalty program members and also to support inbound roaming for operator partners.”

With Hotspot 2.0, an identifier is used to match a client credential – such as the cellular SIM card or a username/password pair – with supported hotspots. When there is a match, the client device automatically connects and then uses the credential to authenticate and encrypt the airlink. This means users don’t have to figure out which SSID to connect to, nor do they have to manually authenticate via a captive log-in page. In this way, Hotspot 2.0 makes the Public Wi-Fi connection experience similar to cellular – and allows one seamless experience across Wi-Fi networks hosted by hundreds of different entities.

Wi-Fi Global Congress also hosted the 2015 WBA Industry Awards. Ruckus won two, for the Best Wi-Fi Enabled Consumer Electronics Device and/or Service for causing a Ruckus with Hotspot 2.0 Release 2, and the WBA Chairman Award – Technology Partner Category. The awards were judged independently of the WBA by a panel of prominent experts. In addition to the two awards won, Ruckus was a finalist for three others, including Best High Density Wi-Fi Deployment in a Venue, Best Wi-Fi Deployment in a City or Public Area, Best Wi-Fi Device/Application.

Wi-Fi Global Congress runs Monday through Thursday at the San Jose Convention Center, and is hosted by the WBA. More than 500 operators, analysts, media and key influencers from around the world will attend. Speakers include Mayor of San Jose, Sam Liccardo; Ruckus SVP and GM of Emerging Technologies Steve Martin; senior representatives from AT&T, BT, Cisco, Sprint and iPass; and CIO-level representatives from San Francisco, San Jose and New York. This year’s event also features the inaugural meeting of the Connected City Advisory Board, a body working to promote the development of connected cities – including city and government representatives from New York, San Francisco, San Jose, Delhi and the Philippines, among others.

Ruckus unveils new Location Based Services solution

SPoT

Major Enhancements to Ruckus SPoT Location-Based Service Uniquely Combine Virtualization, Presence and Integrated BLE Beaconing to Create the Industry’s Most Robust and Affordable Location Solution

Ruckus Wireless, Inc. (NYSE: RKUS) today unveiled a major expansion of its award-winning SPoT™ location-based service (LBS). The expanded Ruckus LBS solution lets service providers and enterprises improve the ROI and monetization of their wireless infrastructure. Organizations can now actively engage with customers through value-added business services tailored for the user online experience.

Fundamental enhancements to the Ruckus LBS solution uniquely combine, for the first time, virtualized SPoT LBS software, calibration-free deployment, user presence and integrated support for Bluetooth Low Energy (BLE) beaconing to streamline the installation and delivery of location-based wireless services. Additionally, Ruckus announced that it has entered into an alliance with Gimbal to enable effective beacon monetization and utilization of wireless networks. New capabilities of the Ruckus SPoT portfolio include:

  • Ruckus SPoT Point – With venue calibration, SPoT Point detects client locations in real-time within a range of five to eight meters, with 80 percent accuracy. SPoT Point can also be deployed without calibration to enable immediate activation of location services with only a small decrease in accuracy.
  • Ruckus SPoT Presence – A new, easy-to-deploy, calibration-free version for those who need less precise LBS tracking information and/or smaller venues with fewer access points deployed, SPoT Presence detects the overall number of devices present in a venue at the nearest Ruckus ZoneFlex™ access point (AP) using proximity analytics.
  • Ruckus SPoT virtual appliance software (virtual SPoT) – A new, virtualized version of SPoT LBS that can be managed off-site in private or hybrid data centers. Virtual SPoT works with VMware Vsphere (version 5.x or higher) to deliver location services from enterprise and service provider data centers.

All versions of the Ruckus SPoT location-based service also now include a Mapping Tool feature on the SPoT Administrative Portal. The Mapping Tool allows for easy updating and editing of the SPoT coverage area, and Ruckus ZoneFlex access point (AP) locations and zones, so that any changes to the SPoT deployment layout can be easily made. Ruckus SPoT service requires no new hardware and can be used with the latest Ruckus ZoneFlex indoor and outdoor 802.11ac access points, in addition to many 802.11n AP models and all new Ruckus SmartZone™ and existing ZoneDirector™ control and management platforms.

Distributed Management and Integration of BLE Beacons

As part of the expanded Ruckus LBS solution, Ruckus ZoneFlex APs will be capable of serving as a two-way distributed management and asset and security monitoring platform for BLE beacons. The new Ruckus ZoneFlex R710 indoor access point and ZoneFlex H500 Wall Switch now support Gimbal as well as iBeacon technology with Ruckus SmartZone and ZoneDirector controllers.

Under a new alliance with Gimbal, a leader in location and proximity-based mobile engagement, Ruckus ZoneFlex APs can now run Gimbal’s proprietary firmware, helping to ensure the highest security for beacon proximity networks via Gimbal’s unique, rolling encrypted IDs. Ruckus APs with Gimbal technology will help enable retailers, hotels, venues, advertisers and out-of-home (OOH) networks to monetize their wireless networks by securely sharing access to their beacon networks with business partners, sponsors or digital ad networks. Ruckus ZoneFlex APs incorporate Gimbal technology and are powered via Power over Ethernet (PoE), eliminating the need for batteries and serving as a detector for all nearby beacons.

Ruckus LBS Solution for Schools, Retailers, Cities and Transportation

Within education environments, the Ruckus LBS solution can be used to track high value assets that are issued by a school as well as to further transform the educational experience to inspire new modes of learning. Throughout the campus, content can be made accessible based on location and time of day. Students can also be located via mobile devices in the case of an emergency.

For retailers, the Ruckus LBS solution provides valuable insights into customer footfall and behavior, plus allows the mapping of data against sales records, and the ability to proactively engage with customers with targeted content that creates a unique shopping experience.

For cities and transportation hubs, such as train stations and airports, the Ruckus LBS solution enables real-time monitoring of foot traffic to optimize schedules, improve staff services, reduce congestion and gridlock, and improve safety.