Starent Networks 2Q profit up 10 percent to beat view as revenue rises

Starent Networks 2Q profit up 10 percent

TEWKSBURY, Mass. — Starent Networks Corp. said Thursday that its second quarter earnings rose by 10 percent as revenue rose, both beating analysts’ expectations.

The company, whose products enable cell phones to connect to the Internet, earned $15.2 million, or 20 cents per share, compared with $13.8 million, or 19 cents, in the same quarter a year earlier.

Revenue came to $78.3 million, up from $61.2 million. Analysts were expecting a profit of 17 cents per share on revenue of $76 million, according to Thomson Reuters.

Starent said it had a 37.7 percent tax rate in the quarter, compared with 8.9 percent a year ago. The quarter also included $5.6 million in non-cash stock-based compensation costs.

Excluding these costs, profit would have been $18.8 million, or 25 cents per share, in the quarter, compared with $18.3 million, or 25 cents, last year.

Shares of Tewksbury, Mass.-based Starent rose 70 cents to close Thursday at $26.40.