WASHINGTON (dpa-AFX) - Network gear maker Acme Packet, Inc. (APKT) on Wednesday reported an 82 percent plunge in profit for the first quarter, reflecting lower product revenues and higher operating expenses. However, the company's shares gained more than 7 percent in extended trade as its adjusted earnings as well as revenue for the quarter beat analysts' estimates.
Product revenue for the quarter declined 11 percent to $53.46 million, while maintenance, support and service revenue rose 22 percent to $17.37 million.
Operating expenses for the quarter surged 32 percent to $52.57 million.
The company's chief executive officer Andrew Ory reportedly said in a conference call with analysts that it plans to deliver sequential revenue growth in the remaining quarters of 2012.
The Bedford, Massachusetts-based company's net income for the first quarter was $2.43 million or $0.03 per share, down from $13.71 million or $0.19 per share in the year-ago period.
Adjusted net income declined to $12.21 million or $0.17 per share from $18.94 million or $0.27 per share in the same period last year.
On average, nineteen analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the quarter. Analysts estimates typically exclude special items.
Total revenue for the quarter declined 4.2 percent to $70.83 million from $73.97 million in the year-ago period. Analysts had a consensus revenue estimate of $69.31 million.
APKT closed Wednesday's trading at $28.22, up $0.31 or 1.11 percent on a volume of 2.21 million shares. In after-hours, the stock further gained $2.04 or 7.23 percent to $30.26.
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