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February 28, 2007

VoIP Supplier Sonus Posts Strong 2006 Sales

By Spencer D. Chin, TMCnet Web Editor


The industry’s continuing move to VoIP has paid dividends for Voice over IP (VoIP) infrastructure solutions company Sonus Networks (News - Alert) Inc., which reported encouraging financial results for the fourth quarter and fiscal year ended Dec. 31, 2006.
 
Revenues for the fourth quarter of 2006 were $79 million compared to $75 million in the third quarter of fiscal 2006. Full 2006-year revenue was $279 million. Cash, cash equivalents and investments increased by $47 million during 2006, to $361 million.
 
"2006 was a great year for Sonus. We set new records for revenue, profitability, order activity, cash flow from operations and, perhaps most importantly, consumer and business traffic on our customers' networks. These results reflect the increasing momentum for our solutions as the industry moves aggressively to IP," said Hassan Ahmed, chairman and CEO, Sonus Networks, in a statement.
 
Sonus is not providing detailed GAAP or non-GAAP financial results for the quarter or full year at this time because it has not yet completed its previously announced restatement of certain historical consolidated financial statements resulting from its voluntary review of employee stock options granting processes. The company is filing a Form 12b-25 with the SEC stating that it will be unable to file its Form 10-K for 2006 until the review has been completed.
 
Sonus said both fourth-quarter and full year 2006 net earnings increased over a year ago. Fourth quarter 2006 gross margin declined modestly from the previous quarter but met the company’s fiscal guidance.
 
Cash and cash equivalents, marketable securities and long-term investments as of Dec. 31, 2006 were a record $361 million.
 
In the fourth quarter of 2006, Sonus announced that eTel, an Internet Service Provider (ISP) and fixed telephony service provider in Central Europe, selected Sonus' Voice over Broadband (VoBB) network infrastructure for its next generation voice network. Sonus also developed a suite of IP-based emergency voice calling features to serve National Security/Emergency Preparedness (NS/EP) needs as outlined by the National Communications System (NCS), whose Executive Agent is the Department of Homeland Security.
 
Sonus also expanded its partnership with Cantata Technology (News - Alert) by integrating the Cantata SnowShore IP Media Server with Sonus' IMS- ready architecture to perform the Media Resource Function (MRF) and facilitate the seamless delivery of subscriber-focused services and applications.
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Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his
columnist page.



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