Acme Packet, Inc. Earnings Cheat Sheet: Higher Profit

Acme Packet, Inc. (NASDAQ:APKT) reported net income above Wall Street’s expectations for the second quarter. The company 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 Earnings Cheat Sheet for the Second Quarter

Results: Net income for Acme Packet, Inc. rose to $14 million (20 cents per share) vs. $9.7 million (14 cents per share) in the same quarter a year earlier. This marks a rise of 44% from the year earlier quarter.

Revenue: Rose 49.5% to $79.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: APKT reported adjusted net income of 29 cents per share. By that measure, the company beat the mean estimate of 21 cents per share. It beat the average revenue estimate of $76.9 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 56.5%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 70.2% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.5 percentage point to 82.6% from the year earlier quarter. Over that span, margins have grown on average 1.4 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 64.5% and in the fourth quarter of the last fiscal year, the figure rose 59.9%.

The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 20 cents per share.

Competitors to Watch: Sonus Networks, Inc. (NASDAQ:SONS), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Riverbed Technology, Inc. (NASDAQ:RVBD), Nokia Corporation (NYSE:NOK), Alcatel-Lucent (NYSE:ALU), Cisco Systems, Inc. (NASDAQ:CSCO), Ditech Networks Inc. (NASDAQ:DITC), Oracle Corporation (NASDAQ:ORCL), Motorola Solutions Inc (NYSE:MSI), and Motorola Mobility Hldgs. Inc (NYSE:MMI).

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(Source: Xignite Financials)