Silver Spring Networks Shares Soar 21% As Q2 Results Top Estimates

(RTTNews) - Shares of Silver Spring Networks, Inc. (SSNI) soared 21 percent in extended trading on Thursday after the networking platform and solutions provider for smart energy networks reported its second quarterly results after listing on the NYSE in mid-March that significantly topped analysts' expectations.

The company also reported a profit for the second quarter compared to a loss last year, reflecting strong service revenue growth.

The company was formerly known as Real Time Techcomm, Inc. and changed its name to Silver Spring Networks, Inc. in August 2002.

"We had a strong second quarter with 17% growth year-over-year and delivered innovative new products. We continue to execute on our technology roadmap delivering solutions to our customers that enable them to unlock even greater value from our leading networking platform," Chairman, President and CEO Scott Lang said in a statement.

The Redwood City, California-based company reported net income of $9.47 million or $0.19 per share for the second quarter, compared to a net loss of $23.41 million or $6.38 per share in the prior-year quarter.

Excluding items, adjusted net loss for the quarter was $4.46 million or $0.10 per share, compared to a net loss of $1.06 million or $0.29 per share in the year-ago quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report a loss of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter doubled to $103.51 million from $51.58 million in the same quarter, and topped eight Wall Street analysts' consensus estimate of $79.60 million.

Adjusted revenue or billings, for the second quarter grew 17 percent to $86.5 million from a year ago, driven by growth in service and product revenue.

Product revenue for the quarter increased 9 percent to $48 million from $44 million, and service revenue soared $56 million from $8 million last year.

Gross profit margin for the quarter was 46.6 percent, compared to 12.9 percent last year, while adjusted gross profit margin contracted 350 basis points to 30.1 percent from last year, due to changes in adjusted revenue mix. SSNI closed Thursday's regular trading session at $27.39, up $0.28 or 1.03% on a volume of 0.20 million shares. The stock soared $5.81 or 21.21% in after-hours trading.