OPNET Technologies Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: OPNET Technologies (NAS: OPNT) popped 14% in intraday trading today after reporting better than expected earnings.

So what: First fiscal quarter non-GAAP EPS of $0.21 was up 33% year over year and nicely beat the $0.18 consensus estimate. GAAP EPS of $0.18 tripled year over year. Revenue grew 30% to $31.1 million, with product revenue up 50% and deferred revenue up 6%.

Now what: Operating margin is demonstrating impressive economies of scale, with non-GAAP operating margin expanding to 18.4% from 10.3% in the year-ago quarter and GAAP operating margin expanding to 15.6% from 7.4%. Management stated it believes the company's "competitive advantages can generate sustained growth in product revenue and profitability over the long term." Non-GAAP EPS guidance for the current quarter is between $0.19 and $0.27, compared to a $0.23 consensus estimate and $0.16 in the year-earlier quarter.

Interested in more info on OPNT? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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