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.