Sonus Networks Reports Second Quarter 2008 Financial Results
Sonus Investor Relations: Karin Cellupica 978-614-8615 kcellupica@sonusnet.com |
Sonus Media Relations: Lucy Millington 978-614-8240 lmillington@sonusnet.com |
Revenue: | $87.9 million, up 16% from Q2 2007 |
Net Income: | $0.1 million (GAAP); $7.8 million (non-GAAP) |
Cash and Investments: |
Down from $407.6 million at the end of Q1 2008, to $397.8 million in Q2 2008 |
WESTFORD, Mass., August 11, 2008 - Sonus Networks, Inc. (Nasdaq: SONS), a market leader in IP communications infrastructure, today reported financial results for the second quarter ended June 30, 2008.
Revenues for the second quarter of fiscal 2008 were $87.9 million, compared to $74.0 million in the first quarter of fiscal 2008 and $75.5 million for the second quarter of fiscal 2007, an increase of 16% year over year. Net income on a GAAP basis for the second quarter of 2008 was $0.1 million, or $0.00 per diluted share, compared to GAAP net income of $0.6 million, or $0.00 per diluted share, for the first quarter of 2008, and a GAAP net loss of $7.0 million, or $0.03 per share, for the second quarter of 2007.
Revenues for the first half of fiscal 2008 were $161.9 million, compared to $146.6 million in the first half of fiscal 2007, representing an increase of 10% year over year. The
Company's GAAP net income for the first half of fiscal 2008 was $0.7 million, or $0.00 per diluted share, compared to a GAAP net loss of $11.0 million, or $0.04 per share, for the first half of fiscal 2007.
"I am excited to be at Sonus," said Richard Nottenburg, president and CEO of Sonus Networks. "I am proud of the Sonus team for delivering revenue in the high end of our original Q2 outlook and earnings that exceeded expectations."
Second Quarter 2008 Customer Highlights
- Bahamas Telecommunications Company (BTC): BTC chose Sonus to replace legacy technology with Sonus' next generation, IP-based technology across BTC's entire wireline network
- Convergia: Convergia selected Sonus as the new backbone of its international network. Convergia will deploy Sonus' Access solution to deliver advanced residential and enterprise voice services
- Tata Communications: Tata Communications announced the strategic expansion of its global voice network with Sonus. Tata is deploying Sonus' complete fixed-line trunking solution to provide its IP-voice services, delivering a robust, highly scalable, reliable platform for IP-voice and multimedia services
- Tortel Communications: Tortel selected Sonus to replace its incumbent IP-voice network technology. Tortel is replacing its legacy solution to improve the overall quality of service and integrity of its network
Acquisition
- Atreus: On April 18, 2008, Sonus acquired Atreus Systems Inc. Atreus' expertise in the integration of operating support systems (OSS) and the provisioning of IP services for fixed-line and mobile operators' access networks fosters the evolution of IP architectures globally
- The combination of Atreus' services and solutions with Sonus' leadership in IP infrastructure enables carriers and network operators around the globe to rapidly deploy innovative communication services to their subscribers
Technology Updates
- MobilEdge 1.1: This quarter Sonus completed Release 1.1 of its mobilEdgeTM solution. The latest release features full support for 2G and 3G radio protocols.
- Voice Over WiMAX: Sonus launched a Voice over WiMAX solution in June. Building on Sonus' long-standing success with Voice over Broadband solutions, Sonus now offers WiMAX operators a complete voice network solution that allows them to quickly and profitably roll out carrier-class voice services over an all-IP network.
Conference Call Details:
Sonus Networks will host a conference call for analysts and investors to discuss its second quarter 2008 results, today at 4:45 p.m. ET.
To listen via telephone:
Dial-in number: 800 931 4071
International Callers: +1 212 231 2900
To listen via the Internet
Sonus will host a live webcast of the conference call. To access the webcast, visit www.sonusnet.com, Corporate, Investor Relations.
About Sonus Networks
Sonus Networks, Inc. is a market leader in IP communications infrastructure for wireline and wireless service providers. With its comprehensive IP Multimedia Subsystem (IMS) solution, Sonus addresses the full range of carrier applications, including residential and business voice services, wireless voice and multimedia, trunking and tandem switching, carrier interconnection and enhanced services. Sonus' voice infrastructure solutions are deployed in service provider networks worldwide. Founded in 1997, Sonus is headquartered in Westford, Massachusetts. Additional information on Sonus is available at http://www.sonusnet.com.
This release may contain forward-looking statements regarding future events that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. Readers are referred to Item 1A "Risk Factors" of Sonus' Annual Report on Form 10-K for the period ended December 31, 2007, filed with the SEC, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Risk factors include among others: the impact of material weaknesses in our disclosure controls and procedures and our internal control over financial reporting on our ability to report our financial results timely and accurately; the unpredictability of our quarterly financial results; risks and uncertainties associated with the Company's restatement of its historical stock option granting practices and accounting including regulatory actions or litigation; risks associated with our international expansion and growth; consolidation in the telecommunications industry; and potential costs resulting from pending securities and patent litigation against the Company. Any forward-looking statements represent Sonus' views only as of today and should not be relied upon as representing Sonus' views as of any subsequent date. While Sonus may elect to update forward-looking statements at some point, Sonus specifically disclaims any obligation to do so, except as required by law.
Sonus is a registered trademark of Sonus Networks, Inc. All other company and product names may be trademarks of the respective companies with which they are associated.