What: Shares of Gigamon Inc (NYSE:GIMO) were moving higher today after posting a better-than-expected first-quarter earnings report. As of 1:50 p.m. EDT, the stock was up 10.4%.

So what: The network-traffic monitoring service said revenue jumped 43% to $67.2 million, well ahead of expectations of $62 million. Results across the board were excellent as demand in both Security and Mobility solutions grew significantly. Gross margin improved from 76% to 81%, and adjusted EPS jumped from $0.13 to $0.22, beating estimates at $0.18.  

CEO Paul Hooper said, "Security continues to be a significant growth driver for us, representing over 60% of our transactions this quarter," adding that Gigamon's platform was "proving to be the most efficient and effective way for organizations to scale their security deployments."

Now what: Management did not issue guidance in the report, but the company has a strong track record of beating estimates, with an upside earnings surprise of 14% or more in each of its last four quarters. With new releases like a metadata engine for GigaSecure and other new product offerings and services, Gigamon is building a foundation for long-term growth. The improvements in operating leverage are also impressive as adjusted net income increased nearly 80% in the quarter, which should provoke a solid round of increases in estimates. I'd expect Gigamon's strong momentum to continue.