April 23, 2009 / 9:31 PM / 10 years ago

UPDATE 3-Starent posts higher net, raises 2009 profit view

* Q1 non-GAAP EPS $0.22 beats estimates by $0.06

* Q1 revenue beats estimates

* Maintains 2009 revenue outlook

* Shares up almost 13 pct after the bell (Adds outlook)

By S. John Tilak

BANGALORE, April 23 (Reuters) - Starent Networks STAR.O, which helps mobile operators deliver multimedia services to subscribers, posted a 32 percent rise in quarterly profit and lifted its earnings outlook for the year, driving its shares up almost 13 percent.

Starent, which counts Sprint-Nextel (S.N) and Verizon Wireless among its biggest customers, said on a conference call that it expects a profit of 71 cents to 74 cents a share in 2009.

The company, whose infrastructure equipment is used by wireless carriers to offer video, multimedia messaging and voice-over-IP services, had previously projected earnings of 65 cents to 68 cents a share for the year.

Starent, however, stood by its revenue outlook of $315 million for the period.

Cantor Fitzgerald analyst Edward Jackson said the solid first-quarter results demonstrated that the company continues to benefit from the robust growth of wireless data services.

“As long as the robust rates of data services continue, they’ll perform well,” Jackson said, adding wireless data was the fastest growing area of communication services.

For the first quarter, the company earned $12.8 million, or 17 cents per share, up from $9.7 million, or 13 cents per share, a year ago. Excluding items, it earned 22 cents.

Total revenue jumped 30 percent to $73.2 million. Product revenue, which accounted for more than three fourth of the total revenue, grew 29 percent, while services revenue rose 38 percent.

Analysts expected earnings of 16 cents a share, before items, on revenue of $72.1 million, according to Reuters Estimates.

Starent shares, which have gained 66 percent in the last six months, were trading at $17.88 after the bell. They closed at $15.90 Thursday on Nasdaq.

Its rivals include Cisco Systems Inc (CSCO.O), Huawei Technologies Huawei Technologies [HWT.UL] and Nokia Siemens Networks [NSN.UL].

For the alerts, please double-click [ID:nWNAB7364] (Editing by Himani Sarkar)

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