(RTTNews) - Monday, Starent Networks, Corp. (STAR: News ), a provider of infrastructure solutions to mobile operators, reported a drop in third quarter profit, reflecting the absence of a one-time tax benefit recorded last year. On an adjusted basis, earnings increased from last year on higher revenues and exceeded Street estimates.

The Tewksbury, Massachusetts-based company's third quarter net income declined to $15.1 million or $0.20 per share from $19.6 million or $0.26 per share in the prior-year period.

Excluding items, net income was $19.2 million or $0.25 per share, up from $17.5 million or $0.24 per share in the year-ago period. On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share for the quarter.

Third quarter 2009 results included $6.3 million of non-cash stock-based compensation expenses, compared to $4.5 million in the third quarter of 2008.

For the quarter, the company recorded income tax expenses of $9.79 million, compared to income tax benefit of $4.93 million in the previous year.

Quarterly revenues rose to $85.97 million from $66.1 million in the comparable period, and topped eleven analysts' estimate of $82.38 million.
Product revenues for the quarter jumped to $73.16 million from $55.45 million last year, while service revenues increased to $12.81 million from $10.61 million last year.

Net income for the first nine months was $43.08 million or $0.57 per share, compared to $43.02 million or $0.58 per share last year. Excluding items, net income grew to $54.0 million or $0.71 per share from $48.8 million or $0.66 per share a year ago.

Starent's net revenues for the year-to-date period advanced to $237.5 million from $183.5 million last year.

On October 13, 2009, Cisco and Starent Networks announced a definitive agreement for Cisco to acquire Starent Networks. The acquisition is expected to close during the first half of calendar year 2010.

STAR is trading at $33.72, down $0.02 or 0.06% on a volume of about 90 thousand shares.

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by RTT Staff Writer

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