MERU to Turn Bearish

Meru Networks, Inc. (NASDAQ:MERU) fell down sharply following the financial results of fourth quarter 2011 report.

After more than a monthly upward moving trend MERU lost 19.81% or $1.05 per share to close the trading session at $4.25. In the course of trading over the recent year stock trading tools registered the company’s 52-high of $27.33 and dropped as low as $3.16. The company’s market capitalization at the recent closing price amounts to $74.67 million which refers MERU to a group of small cap companies. The unusual share price downgrade resulted in the increasing trading volume. Thus, on Thursday (February, 2) as many as 802,372.00 shares of the company were traded, while the average trading volume of MERU calculated on the 30-day basis amounts to 145,526.00. The company owns 17.57 million outstanding shares that are engaged in stock market portfolios of multiple investors.

The shares of MERU experienced a sudden drop following the announcement of the company’s financial results for the fourth quarter and the full year 2011. As it has been reported, total revenues generated by the company for the fourth quarter 2011 amounted to $23.3 million which is 3% higher than for the corresponding period 2010. Furthermore, the reported company’s net loss in full compliance with generally accepted accounting principles (GAAP) is equal to $8.2 million for the fourth quarter 2011. This can also be regarded as $0.46 per basic and diluted share, while in the same period 2010 net loss of MERU amounted to $0.09, which is $0.06 per basic and diluted share.

Meru Networks, Inc. is engaged in the Communications Services with a particular focus on wireless LAN (local area network) solutions. The company provides services of transferring from wired to wireless networks for enterprises.