What: Shares of Acacia Communications (NASDAQ:ACIA) soared on Friday following the release of the company's second-quarter report. Revenue more than doubled year over year, driving the stock 33% higher by noon.
So what: Acacia reported second-quarter revenue of $116.2 million, up 101% year over year. Costs soared as well, but higher revenue drove non-GAAP EPS to $0.77, up from $0.44 during the prior-year period. On a GAAP basis, Acacia reported earnings of $0.43 per share, up from $0.09 per share during the same period last year.
Acacia CEO Raj Shanmugaraj summed up the quarter:
Our record second quarter results exceeded our expectations across the board and reflect the success of our disruptive technology in transforming cloud, content and communications networks. These results are a testament to our strategy and demonstrate our leadership position in the high-growth 100G plus optical networking market. We continue to see strong global demand for our products, driven by metro and inter-data center network infrastructure buildouts.
Now what: Acacia expects to continue to grow rapidly during the third quarter. The company guided for third-quarter revenue in the range of $120 million to $128 million, with non-GAAP EPS between $0.64 and $0.76.
Acacia had its IPO in May, raising over $100 million and bolstering the company's balance sheet. Unlike many fast-growing technology companies, Acacia is profitable, with an impressive GAAP operating margin of 17% during the second quarter. While the stock is certainly priced optimistically, Acacia has the growth and the profitability to back it up.