SONUS NETWORKS REPORTS
2011 SECOND QUARTER RESULTS
Westford, MA, August 2, 2011 - Sonus Networks, Inc. (NASDAQ:SONS, news, filings), a market leader in next-generation IP-based network solutions, today announced results for the quarter ended June 30, 2011.
Second Quarter Highlights
- Revenue from session border controller (SBC) products was $7.7 million in the second quarter of fiscal 2011, compared to $2.3 million in the first quarter of fiscal 2011 and $9.4 million in the second quarter of fiscal 2010.
- Customer bookings for the NBS5200 session border controller represented over 50% of total SBC bookings in the quarter for the first time since launching this product.
- Sonus is reiterating full year revenue guidance: for fiscal year 2011, the Company expects revenue of $265 million to $285 million, representing revenue growth of 6% to 14%.
- The Company's previous full year guidance for non-GAAP gross margin, non-GAAP operating expenses and year-end cash also remains unchanged.
Revenue for the second quarter of fiscal 2011 was $51.8 million, compared to $67.3 million in the first quarter of fiscal 2011 and $61.2 million in the second quarter of fiscal 2010. The Company's net loss for the second quarter of fiscal 2011 was $5.9 million, or $0.02 per share, compared to a net loss of $12.4 million, or $0.04 per share, for the first quarter of fiscal 2011 and net income of $0.3 million, or $0.00 per diluted share, for the second quarter of fiscal 2010.
"The team and I remain enthusiastic about our opportunity to grow our business, building on our solid history of technical excellence, strong customer relationships and a healthy balance sheet," said Ray Dolan, President and Chief Executive Officer of Sonus Networks. "Reiterating our full year guidance underscores our confidence in our growth strategy and our ability to execute for the remainder of the year. The NBS5200, our innovative carrier and enterprise-class Session Border Controller, was recently recognized by TMC as a 2010 Communications Solutions Product of the Year. This product, launched roughly one year ago, is experiencing solid momentum and represents an attractive area of growth for the Company."
Forward-looking Fiscal 2011 Guidance:
- Revenue of $265 million to $285 million, up between 6% and 14% from the prior year
- SBC revenue of $40 million, up 64% from the prior year
- Non-GAAP gross margins of 59% to 63%
- Non-GAAP operating expenses of $143 million to $147 million, down 2% to 4% from the prior year
- Year-end cash between $400 million and $410 million
The Company's GAAP financials for the three months ended June 30, 2011, March 31, 2011 and June 30, 2010 and the six months ended June 30, 2011 and 2010, as well as GAAP to non-GAAP reconciliations, are attached to this press release. Additional reconciliations of GAAP to non-GAAP financial information will also be available on the Sonus Investor Relations website at www.sonusnet.com, About Us, Investor Relations, Financial Information.
Earnings Conference Call Details:
Sonus Networks will host a conference call for analysts and investors to discuss its second quarter 2011 results as well as certain forward-looking information today at 4:45 p.m. ET.
To listen live via telephone:
Dial-in number: 800-954-0592
International Callers: +1 212-231-2925
To listen via internet:
Sonus Networks will host a live webcast of the conference call. To access the webcast, visit www.sonusnet.com, About Us, Investor Relations.
About Sonus Networks
Sonus Networks, Inc. is a leader in IP networking with proven expertise in delivering secure, reliable and scalable next generation infrastructure and subscriber solutions. With customers in over 50 countries across the globe and over a decade of experience in transforming networks to IP, Sonus has enabled service providers and enterprises to capture and retain users and generate significant ROI. Sonus products include media and signaling gateways, policy/routing servers, session border controllers and subscriber feature servers. Sonus products are supported by a global services team with experience in design, deployment and maintenance of some of the world's largest and most complex IP networks. For more information, visit 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. Readers are referred to Item 1A "Risk Factors" included in Sonus' Annual Report on Form 10-K for the year ended December 31, 2010 and Quarterly Reports on Forms 10-Q for the quarters ended March 31, 2011 and June 30, 2011, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. 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.
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