Starent Networks, Corp. (Nasdaq:STAR), a leading provider of infrastructure solutions that enable mobile operators to deliver multimedia services, today reported financial results for the fourth quarter and full year ended December 31, 2008. Net revenues for the fourth quarter of 2008 were $70.6 million, an increase of 40% from the fourth quarter of 2007. Net revenues for the full year ended December 31, 2008 were $254.1 million, up 74% from the year ended December 31, 2007.
Net income for the fourth quarter of 2008 was $17.5 million, or $0.24 per diluted share, compared to net income of $4.2 million, or $0.06 per diluted share, for the fourth quarter of 2007. Net income for the full year ended December 31, 2008 was $60.5 million, or $0.82 per diluted share, compared to net income of $11.5 million prior to allocations to preferred shareholders, which resulted in net income applicable to common shareholders of $0.12 per diluted share for the full year ended December 31, 2007. Fourth quarter 2008 results included $4.0 million of non-cash stock-based compensation expenses compared to similar expenses of $4.3 million in the fourth quarter of 2007. The results for the full year ended December 31, 2008 included $16.5 million of non-cash stock-based compensation expenses compared to similar expenses of $12.8 million for the full year ended December 31, 2007.
Excluding the impact of stock-based compensation and assuming preferred shares were converted as of the beginning of the applicable period, non-GAAP net income for the fourth quarter of 2008 was $21.6 million, or $0.29 per diluted share, and non-GAAP net income for the full year ended December 31, 2008 was $70.4 million, or $0.95 per diluted share, compared to a non-GAAP net income for the fourth quarter of 2007 of $8.4 million, or $0.11 per diluted share, and non-GAAP net income for the full year ended December 31, 2007 of $24.2 million, or $0.37 per share.
Operational Highlights
Highlights for the fourth quarter and full year 2008 included several key business initiatives and milestones. In the fourth quarter, the company:
- Announced that Bouygues Telecom, a leading mobile operator in France, is deploying Starent Networks’ intelligent multimedia core networking solutions to deliver services over its broadband Universal Mobile Telecommunications System (UMTS) network.
- Announced that Tatung InfoComm Corporation of Taiwan is deploying Starent Networks’ multimedia core platforms for Home Agent functionality with Access Service Network (ASN) Gateway capability in both its commercial and test WiMAX networks.
- Demonstrated its IMS and WiMAX solutions at the MultiService Forum’s Global MSF Interoperability (GMI) 2008, which is a multi-vendor event for emerging next-generation architectures that deliver converged services across wireless and wireline access networks.
- Participated in WiMAX World 2008 and exhibited a multi-band, interoperable WiMAX network utilizing open-standard interfaces in a joint demonstration with Airspan Networks and Fujitsu Network Communications.
For the year 2008, the company:
- Expanded its geographic footprint in the UMTS market with network solutions at various stages of deployment in twelve countries. Starent Networks also extended its leadership position in the CDMA market by adding new mobile operator customers in the Americas, China and India.
- Introduced its Serving GPRS Support Node (SGSN), a key element in 2G/3G GSM/UMTS multimedia core networks. The SGSN joins the Starent Gateway GPRS Support Node (GGSN) product to provide a more comprehensive UMTS packet core solution.
- Announced that Vodafone Germany selected Starent’s intelligent multimedia core solutions to deliver services over its broadband network. This deployment includes both intelligent GGSN and SGSN for its UMTS and High Speed Packet Access (HSPA) network.
- Announced solutions for the Fixed Mobile Convergence (FMC) market including its Femtocell Gateway and Security Gateway. These solutions allow subscribers to roam between existing secure networks and new unsecure networks, such as femtocell and WiFi.
About Starent Networks
Starent Networks, Corp. is a leading provider of infrastructure solutions that enable mobile operators to deliver multimedia services to their subscribers. Starent Networks has created solutions that provide mobile operators with the functions and services needed for access, mobility management and call control in their networks. Through integrated intelligence and high performance capabilities, Starent Networks’ solutions also enhance subscriber management, billing and session policy enforcement. The company’s products are capable of supporting a wide range of mobile wireless networks, such as UMTS, CDMA2000, WiFi and WiMAX. Starent Networks’ products have been deployed by over 85 mobile operators in more than 35 countries. Additional information about Starent Networks is available at www.starentnetworks.com.