Aruba Networks (ARUN)

 

The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. During the first quarter of fiscal 2008, the Company determined that the fair values assigned to certain warrants to purchase preferred stock issued to non-employees were not computed correctly as of the IPO closing date when they automatically converted to warrants to purchase common stock which resulted in $715,000 of excess warrant expense being recognized in other income (expense), net in the third quarter of fiscal 2007. During the first quarter of fiscal 2008, the Company corrected the valuation of these warrants resulting in the inclusion of other income of $715,000 within other income (expense), net and a reduction of additional paid-in capital of $715,000. In addition, during the first quarter of fiscal 2008, the Company determined that stock-based compensation related to its employee stock purchase plan was understated by $48,000 and $87,000 in the third and fourth quarters of fiscal 2007, respectively. During the first quarter of fiscal 2008, the Company corrected these errors resulting in the inclusion of $135,000 of additional stock-based compensation within the consolidated statement of operations for the three months ended October 31, 2007. The Company and its Audit Committee concluded that these errors were not material to the third and fourth quarters of fiscal 2007, the year ended July 31, 2007 or the estimated results for the year ending July 31, 2008, and therefore, the corrections were recorded in the first quarter of fiscal 2008.

 

 

The Company’s consolidated financial statements have been
prepared in accordance with accounting principles generally
accepted in the United States of America. During the first
quarter of fiscal 2008, the Company determined that the fair
values assigned to certain warrants to purchase preferred stock
issued to non-employees were not computed correctly as of the
IPO closing date when they automatically converted to warrants
to purchase common stock which resulted in $715,000 of excess
warrant expense being recognized in other income (expense), net
in the third quarter of fiscal 2007. During the first quarter of
fiscal 2008, the Company corrected the valuation of these
warrants resulting in the inclusion of other income of $715,000
within other income (expense), net and a reduction of additional
paid-in capital of $715,000. In addition, during the first
quarter of fiscal 2008, the Company determined that stock-based
compensation related to its employee stock purchase plan was
understated by $48,000 and $87,000 in the third and fourth
quarters of fiscal 2007, respectively. During the first quarter
of fiscal 2008, the Company corrected these errors resulting in
the inclusion of $135,000 of additional stock-based compensation
within the consolidated statement of operations for the three
months ended October 31, 2007. The Company and its Audit
Committee concluded that these errors were not material to the
third and fourth quarters of fiscal 2007, the year ended
July 31, 2007 or the estimated results for the year ending
July 31, 2008, and therefore, the corrections were recorded
in the first quarter of fiscal 2008.

 

 

The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.