Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Acme Packet (APKT) have popped today by as much as 16%, after the company reported earnings last night.
So what: Revenue fell 8% to $65.3 million, which resulted in non-GAAP net income of $4.7 million, or $0.07 per share. Those figures came in right on target with analyst expectations. The company also updated its full-year guidance, but that likely didn't spark the rally.
Now what: The non-GAAP earnings per share outlook narrowed from a prior range of $0.43 to $0.47 per share to a $0.44 to $0.46 per share target, squeezing in by a penny on each side. The optimism could be simply relief that sales came in on target, as opposed to missing forecasts, especially within the context that carrier customers have been cutting back capital expenditures. However, the industry continues to inch toward Voice over LTE, or VoLTE, which is good news for Acme Packet.
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