Sonus Networks Reports 2010 Fourth Quarter and Full Year Results

Posted by admin

WESTFORD, Mass. Feb. 28, 2011 Sonus Networks, Inc. IP-based network solutions December 31, 2010

http://photos.prnewswire.com/prnh/20100928/NE71605LOGO

$83.0 million $42.7 million $68.7 million $11.4 million $0.04 $22.3 million $0.08 $10.3 million $0.04

$249.3 million $227.5 million $21.8 million $153.2 million $144.1 million $9.1 million $164.7 million $155.5 million $10.7 million $0.04 $4.9 million $0.02

$155.5 million $146.5 million $9.0 million $149.5 million $141.3 million $6.8 million $0.02 $11.6 million $0.04

Raymond P. Dolan

Sonus Financial Guidance for Fiscal Year 2011:

February 28, 2011

$265 million and $285 million $151 million to $155 million $143 million to $147 million

http://www.sonusnet.com

Conference Call Details:

4:45 p.m. ET

To listen live via telephone:

To listen live via internet:
www.sonusnet.com

About Sonus Networks

www.sonusnet.com

Important Information Regarding Forward-Looking Statements

This release may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act) 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. Such forward-looking statements may relate to, among others, expected financial and operating results, expected growth rates, future stock-based compensation and amortization expenses, future business prospects and market conditions. Such forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated. These include, but are not limited to: difficulties supporting our new strategic focus on channel sales; difficulties expanding the Company’s customer base; difficulties leveraging market opportunities; difficulties providing solutions that meet the needs of customers; market acceptance of the Company’s products and services; rapid technological and market change; the ability to recruit and retain key personnel; the ability to protect intellectual property rights; the ability to maintain partner, reseller, distribution and vendor support and supply relationships; higher risks in international operations and markets; the ability to hire and retain employees; the impact of increased competition; currency fluctuations; litigation; changes in the market price of the Company’s common stock; the timing of the Company’s recognition of revenues; actions taken by significant stockholders; failure or circumvention of the Company’s controls and procedures; and other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission by the Company, including in Item 1A – "Risk Factors" of our Annual Report on Form 10-K. 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.

For more information, please contact:


Wayne Pastore Senior Vice President and Chief Financial Officer 978-614-8291 wpastore@sonusnet.com	Fran Murphy Vice President, Finance and Investor Relations 978-614-8148 fmurphy@sonusnet.com

SONUS NETWORKS, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)


			Three months ended
			December 31,	September 30,	December 31,
			2010	2010	2009
Revenue:
	Product		$ 54,118	$ 19,391	$ 47,009
	Service		28,861	23,348	21,703
		Total revenue	82,979	42,739	68,712

Cost of revenue:
	Product		17,805	7,231	11,852
	Service		12,491	11,730	11,481
		Total cost of revenue	30,296	18,961	23,333

Gross profit			52,683	23,778	45,379

Gross profit %
	Product		67.1%	62.7%	74.8%
	Service		56.7%	49.8%	47.1%
		Total gross profit %	63.5%	55.6%	66.0%

Operating expenses:
	Research and development		16,514	16,226	13,869
	Sales and marketing		13,211	11,836	12,911
	General and administrative		11,119	17,157	10,958
	Restructuring		387	1,114	–
		Total operating expenses	41,231	46,333	37,738

Income (loss) from operations			11,452	(22,555)	7,641
Interest expense			(138)	(10)	(89)
Interest income			320	439	592
Other income, net			–	1	47

Income (loss) before income taxes			11,634	(22,125)	8,191
Income tax benefit (provision)			(224)	(153)	2,118

Net income (loss)			$ 11,410	$ (22,278)	$ 10,309

Earnings (loss) per share:
	Basic		$ 0.04	$ (0.08)	$ 0.04
	Diluted		$ 0.04	$ (0.08)	$ 0.04

Shares used to compute earnings (loss) per share:
	Basic		276,659	275,412	274,359
	Diluted		278,096	275,412	275,152

SONUS NETWORKS, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)


			Year ended
			December 31,	December 31,
			2010	2009
Revenue:
	Product		$ 146,583	$ 136,276
	Service		102,724	91,220
		Total revenue	249,307	227,496

Cost of revenue:
	Product		48,163	38,893
	Service		47,992	44,467
		Total cost of revenue	96,155	83,360

Gross profit			153,152	144,136

Gross profit %
	Product		67.1%	71.5%
	Service		53.3%	51.3%
		Total gross profit %	61.4%	63.4%

Operating expenses:
	Research and development		62,786	59,864
	Sales and marketing		51,033	48,929
	General and administrative		49,391	43,217
	Restructuring		1,501	3,510
		Total operating expenses	164,711	155,520

Leave a comment Cancel reply