What: Shares of Ubiquiti Networks (NASDAQ:UBNT) rose as much as 24.7% early Friday, then settled to trade up 16.8% as of 10:00 a.m. ET after the network communications platform specialist announced better-than-expected fiscal second-quarter 2016 results.

So what: Quarterly revenue rose 5.7% year over year to $161.9 million, including a 9.9% year-over-year increase in service provider revenue to $109.6 million and a 2.1% decline in enterprise technology revenue to $52.3 million. That resulted in a 5.5% increase in adjusted net income to $49.7 million and 9.4% growth in adjusted earnings per share to $0.58. Based on generally accepted accounting principles (GAAP), net income rose 6.9% to $49.5 million and 9.6% on a per-share basis to $0.57. By comparison, Ubiquiti Networks' guidance called for revenue between $150 million and $160 million, GAAP EPS of $0.48 to $0.55, and adjusted EPS of $0.49 to $0.56.

"We believe that our quarterly financial results demonstrate our ability to effectively execute on our next generation business that is built for growth and profitability," added Ubiquiti management in a prepared statement. "We continue to have a focused approach to deliver competitively priced, proprietary products with outstanding performance to our end customers."

Now what: Based on orders received and estimated channel inventory, for the current quarter Ubiquiti expects revenue between $160 million and $170 million, or growth of 8.5% to 15.3% over the same year-ago period. In addition, GAAP earnings per share for the quarter should be $0.52 to $0.59, and adjusted earnings per share should be $0.53 to $0.60. Analysts, on average, predicted fiscal Q2 revenue of $155.1 million, and adjusted earnings of $0.51 per share.

All things considered, this is a cut-and-dried case of Ubiquti handily beating expectations and offering strong guidance as its growth accelerates. Assuming it can maintain this momentum going forward, and with shares still trading at a reasonable 14.4 times next year's expected earnings, I won't be surprised if Ubiquiti Networks stock has more room to rise from here.

Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Ubiquiti Networks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.