Acme Packet Earnings: Swings to a LOSS After Two Quarters of Profit

Acme Packet, Inc. (NASDAQ:APKT) dropped to a second quarter loss, but results topped expectations. Acme Packet provides session border controllers that enable service providers to deliver secure interactive communications–voice, video, and other real-time multimedia sessions–across Internet Protocol network borders.

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Acme Packet, Inc. Earnings Cheat Sheet

Results: Reported a loss of $127,000 (0 cents per diluted share) in the quarter. Acme Packet, Inc. had a net income of $14 million or 20 cents per share in the year-earlier quarter.

Revenue: Fell 15.2% to $67.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Acme Packet, Inc. reported adjusted net income of 13 cents per share. By that measure, the company beat the mean estimate of 2 cents per share. Analysts were expecting revenue of $67 million.

Key Stats:

After two quarters of falling short, the company beat estimates last quarter. In the first quarter, it missed the mark by 3 cents, and in the fourth quarter of the last fiscal year, it came in under estimates by 6 cents.

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $2.4 million in the first quarter, a profit of $8.7 million in the fourth quarter of the last fiscal year and $7.9 million in the third of the last fiscal year.

Revenue has declined for two quarters in a row. In the first quarter, revenue declined 4.2% to $70.8 million from the year-earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 18 cents per share to 6 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from 63 cents a share to 25 cents over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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