Starent Networks Sees 32% Jump in Q1 Profits

Starent Networks has reported 30% jump in first-quarter revenues to reach US$73.2 million, compared to Q1 2008 - while net income rose by 32.3% to US$12.8 million from US$9.7 million a year ago. The first quarter results included $4 million of non-cash stock-based compensation expenses compared to similar expenses of $3.4 million in the first quarter of 2008. Excluding the impact of stock-based compensation, non-GAAP net income for the first quarter of 2009 was $16.1 million.

The company's income before tax expense grew more than its net income and more than doubled for the first quarter of 2009 compared to the first quarter of 2008. In the first quarter of 2009, the company's tax rate was 39.7%, reflecting a normal provision for income taxes; whereas for the same period of 2008, the company's tax rate was only 4.5% and did not reflect a normal tax provision due to the company's use of net operating loss carryforwards in determining the tax provision for that period.

Posted to the site on 24th April 2009