Preliminary sales in the third quarter above the consensus forecasts of analysts of Meru Networks, the leading provider of virtualized, wireless 802.11 network solutions for businesses, announced recently that the President and CEO of the company, Ihab Abu-Hakima, that will leave the company in the course of the next six months. Abu-Hakima will work closely with the company Board of Directors to find a successor who can lead the company in its next phase of growth. “I believe that I have achieved my personal and business goals, and thanks to the positive development of Meru, now is the right time to pass the line to a new CEO who can take the company to the next higher level,” said Ihab Abu-Hakima, President and CEO of Meru Networks. “I’m leaving Meru at a time when I believe that our long-term business prospects were never better. We expand our global customer base with breakneck speed, increase our turnover, increase our inventory of committed sales partners, develop a comprehensive pipeline of new products and also increase our workforce.
I will lead more actively the company, while the company Board searches for a new CEO.” Meru also said that according to preliminary figures, the company will announce revenues for the third quarter, above the consensus estimates of analysts. After record sales in the second quarter, expected Meru a record turnover of 23.2 to $23.7 million for the third quarter, compared with a previous forecast of 22 to 24 million dollars. The company expects a growth in sales of products and services (less taxable revenues) of 18% compared to the third quarter 2010 to 20%. The non-GAAP gross profit, neglected the impact of stock-based compensation, will be the expectations according to up 64% from 63.0% to 63.5% and thus within the forecast range of 63%. The non-GAAP net of the impact of stock-based compensation and the amortization of intangible assets resulting from the acquisition of identity networks not taken into account, is the expectations according to between 0.22 and 0.24 dollars per diluted share move, compared to earlier forecasts of loss of about 0.17 shares up 0.23 dollars per diluted.