These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, which could cause actual results to differ materially from those anticipated by these statements. These forward-looking statements apply as of today and you should not rely on them as representing our views in the future and we undertake no obligation to update these statements after this call.For a more detailed description of these risks and uncertainties, please refer to our annual report on Form 10-K filed with SEC on September 24, 2010 as well as our earnings release posted a few minutes ago on our website. Copies of these documents may be obtained from the SEC or by visiting the Investor Relations section of our website. Also, please note that certain financial measures we use on this call are expressed on a non-GAAP basis and have been adjusted to exclude certain charges. We have provided reconciliations of these non-GAAP financial measures to GAAP financial measures in the Investor Relations section of our website located at www.arubanetworks.com and in our earnings press release. Now, I’d like to introduce Dominic Orr, President and Chief Executive Officer of Aruba Networks. Dominic? Dominic Orr Good afternoon and thank you for taking the time to attend our fiscal first quarter 2011 conference call. I am pleased to announce another record quarter for Aruba Networks with revenues, gross margin, operating margins and net income all at the highest level in our company history on a non-GAAP basis. Q1 revenues increased 44% year-over-year to $83.1 million, as we saw strong demand from across all our key verticals and major geographies. Non-GAAP operating margin expanded even faster than revenues, increasing to 16.8% from 14.7% in Q4 and 7.6% in the same period last year. Over the last two years we have been gaining significant traction with our right sizing initiative which clearly delineates the cost and performance benefits of moving to a wireless where-you-can, wired where-you-must network infrastructure.
This initiative continues to gain momentum with the rapid proliferation of Wi-Fi enabled mobile devices. Employees and executives alike are bringing their iPads, smart pads and smart phones into the office and demanding secure scalable connectivity whenever and wherever they need it. With the executive sweep adopting devices like the iPad, wireless LAN is increasingly becoming top of mind for CIO’s. With no Internet port, this devices demand changes to the current network architecture. Even in offices already equipped with wireless networks, this device [ph] drive the need for increased density, network intelligence, enhanced management spectrum capabilities and a new mobility centric approach to network security.In this environment, Aruba’s unique user centric security architecture, application fingerprinting and proven dependability and scalability resonate extremely well with IT decision makers. We can see this momentum in our sales to the general enterprise. Historically, we have driven a majority of our growth form the education, government, healthcare and hi-tech sectors. While we saw year-over-year growth in each of these areas in Q1, our largest gains were in the general enterprise. While we continue to believe that our core verticals will be a significant part of our growth moving forward, the performance of our broader enterprise business is encouraging and shows that we are gaining traction in fundamentally changing organized patience approach to network access. The growing market acceptance of our secure mobility solution is no way more evident than in our customer acquisition as we added well over 800 new customers in Q1. This new customers included one of the busiest airports in the world located in the Middle East, a major owner operator of casinos in North America, the largest privately owned real estate company in the US, a Fortune 500 semiconductor equipment company, an up-scale retailer with 400 stores, large municipalities in Japan and in Spain and many healthcare and education institutions around the world. These new customers are rolling out 802.11n networks almost exclusively. And the 11n now accounts for over 74% of overall access point shipments with almost all new customers purchasing 11n. Read the rest of this transcript for free on seekingalpha.com