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Sonus Networks, Inc: Sonus Networks Reports First Quarter 2008
Financial Results; Industry Leader Delivers Year-Over-Year Quarterly
Growth And Increased Profitability
(M2 PressWIRE Via Acquire Media NewsEdge)
RDATE:08052008
WESTFORD, Mass.-- Sonus Networks, Inc. (Nasdaq: SONS), a market leader
in IP communications infrastructure, today reported financial results
for the first quarter ended March 31, 2008.
Revenues for the first quarter of fiscal 2008 were $74.0 million,
compared with $97.1 million in the fourth quarter of fiscal 2007 and
$71.1 million for the first quarter of fiscal 2007. Net income on a
GAAP basis for the first quarter of 2008 was $0.6 million, or $0.00 per
diluted share, compared to GAAP net income of $14.1 million, or $0.05
per diluted share, for the fourth quarter of 2007, and a GAAP net loss
of $4.0 million, or $0.02 per share, for the first quarter of 2007.
The Company's results include stock-based compensation and related
expenses, stock option review costs, amortization of intangible assets
related to the April 2007 purchase of Zynetix, a change in estimate of
a loss contingency related to an employment tax audit in connection
with the stock option review and an insurance recovery related to the
2004 restatement litigation settlement. The amount of each item
included in our financial information is available in the "Supplemental
Information" schedule attached. On a pre-tax basis, these amounts
totaled $7.4 million of expense in the first quarter of 2008, a net
gain of $7.5 million in the fourth quarter of 2007 and $13.7 million of
expense in the first quarter of 2007. Excluding these items, non-GAAP
net income for the first quarter of 2008 was $5.2 million, or $0.02 per
diluted share, compared with $12.0 million, or $0.04 per diluted share
for the fourth quarter of 2007 and $4.8 million, or $0.02 per diluted
share, for the first quarter of 2007.
The Company had another strong quarter from a cash perspective. In the
first quarter of 2008, cash, cash equivalents and investments increased
by approximately $15 million, totaling over $407 million at March 31,
2008. Additionally, the Company continues to have no debt.
"Our first quarter results demonstrate the diversity of our business
and a solid global environment for IP communications," said Hassan
Ahmed, chairman and CEO of Sonus Networks. "Fueled by the growth of
the IP-services market, Sonus' global business continues to expand, and
the demand for our solutions continues to increase. With another period
of year-over-year quarterly revenue growth, we're delivering results
and executing on our long term strategy. During the last year, there
has been increased adoption of Sonus solutions by incumbent operators
and the transformation underway in today's communications networks has
expanded from fixed-line to include mobile networks. Sonus is gaining
momentum and is well positioned to execute on our goals."
First Quarter Fiscal 2008 Business Highlights: In the first quarter of
fiscal 2008, Sonus introduced innovative new technology to the market
and announced important customer expansion that will fuel growth in
2008 and beyond.
New Products:
In February 2008, Sonus introduced the mobilEdge Wireless Access Node.
This new solution allows network operators to combine their high-speed
data networks with picocell or femtocell technology to maximize the
investment they have previously made in their wireless broadband
networks. Further, the mobilEdge solution allows operators to generate
increased minutes and improve the average revenue per user with broader
wireless access and additional services.
In February 2008, Sonus announced its Centralized Call Routing
Database. Sonus' Centralized Call Routing Database leverages the Sonus
PSX Policy Server, which allows mobile operators to consolidate routing
decisions in a central location instead of provisioning each individual
mobile switching center. It delivers enhanced network performance and
efficiency by providing mobile operators with Transcoder-Free Operation
(TrFO). By eliminating the need to convert signals between disparate
mobile networks, network operators free additional network capacity.
In March 2008, Sonus announced the latest release of its IP Multimedia
Subsystem (IMS) core architecture, including upgrades to its SRX Call
Session Control Function and HSX Home Subscriber Server. With its
latest release, Sonus empowers network operators to deliver advanced
multimedia communications applications and services on a
standards-based platform built to meet the rigorous scalability,
reliability and security needs of today's largest network operators.
Global Customer Announcements:
In the UK, The Carphone Warehouse Networks announced that over one
million phone users in the UK are now live on its next generation
network infrastructure which is supported by the Sonus IP-based
platform. Sonus technology is supporting the dramatic expansion in The
Carphone Warehouse Networks' residential voice business, and the major
milestone of more than one million subscribers was achieved in just 27
months. The Carphone Warehouse Networks estimates that by 2010 it will
have 3.5 million broadband subscribers for this service.
Industry Leadership: Independent market researchers reported that Sonus
increased its market share in the fourth quarter of 2007, extending its
leadership position and outpacing the market and its competition.
Synergy Research Group, a leading independent industry research firm,
named Sonus the market share leader in key segments of the IP-voice
market in its "4Q07 Service Provider Worldwide VoIP Market Share
Report." Synergy reported that Sonus grew more than twice as fast as
the industry average in key segments of the next generation voice
solutions industry during Q4 2007 versus Q3, and increased its market
share leadership position for 2007 as a whole. In 2007, Sonus outpaced
the market, securing #1 market share in the global high density gateway
segment. In the total global VoIP gateway market, Sonus' annual
performance of 19% moved the Company from #3 in 2006, to #1 in 2007.
"Looking forward, we remain optimistic about our growth opportunities
as we continue to expand our presence around the world and move deeper
into our core market segments. Demand continues to be healthy for our
solutions and services in each of our core markets and geographic
regions and we are continuing our deployments with some of the world's
largest operators," concluded Ahmed.
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.
CONTACT: Jocelyn Philbrook, Investor Relations, Sonus Networks
Tel: +1 978 614 8672
e-mail: jphilbrook@sonusnet.com
Lucy Millington, Media Relations, Sonus Networks
Tel: +1978 614 8240
e-mail: lmillington@sonusnet.com
WWW: http://www.sonusnet.com
Lauren Bishop, Lead Consultant, Catalysis
Tel: +44 (0)20 7101 7332
Tel: +44 (0)20 7101 7300
Tel: +44 (0)79 6735 1904
Fax: +44 (0)20 7101 7301
e-mail: lauren.bishop@catalysis.co.uk
WWW: http://www.catalysis.co.uk
((M2 Communications Ltd disclaims all liability for information
provided within M2 PressWIRE. Data supplied by named party/parties.
Further information on M2 PressWIRE can be obtained at
http://www.presswire.net on the world wide web. Inquiries to
info@m2.com)).
Copyright ? 2008 M2 Communications Ltd.
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