Sonus Networks Reports 2000 Fourth Quarter and Annual Financial Results; Q4
Revenues Grow to $28.6 Million,
Increase 84% Over Preceding Quarter; Company Reports First Profits
Business/Technology Editors
WESTFORD, Mass.--(BUSINESS WIRE)--Jan. 18, 2001--Sonus Networks,
Inc. (Nasdaq: SONS), a leading provider of voice infrastructure
solutions for the new public network, today reported financial results
for its fourth quarter and fiscal year ended December 31, 2000.
Revenues for the fourth quarter of fiscal 2000 were $28.6 million
compared with $15.6 million for the third quarter ended September 31,
2000, an increase of 84 percent. Net income, excluding stock-based
compensation, for the fourth quarter of fiscal 2000 was $0.1 million
or $0.00 per share, compared with a net loss, excluding stock-based
compensation, of $5.4 million or $0.04 per share on a pro forma basis
for the third quarter of fiscal 2000.
Net loss for the fourth quarter, including stock-based
compensation, was $6.3 million or $0.04 per share, compared with a net
loss of $12.4 million or $0.09 per share for the third quarter of
fiscal 2000.
Revenues for the fiscal year 2000 were $51.8 million. Net loss,
excluding stock-based compensation, for the fiscal year 2000 was $23.3
million or $0.17 per share, on a pro forma basis. Net loss, including
stock-based compensation, for the fiscal year 2000 was $50.0 million
or $0.37 per share on a pro forma basis.
Certain per share amounts above are on a pro forma basis, which
assumes the conversion of all redeemable convertible preferred stock
into common stock as if such conversion occurred at the date of
original issuance.
"We are extremely pleased with our fourth quarter results,
particularly since we achieved our first quarter of profitability,
excluding stock-based compensation," said Hassan Ahmed, president and
CEO, Sonus Networks. "The significant growth in revenues reflects
increased demand for our next-generation voice infrastructure
products, and the expanding number of customers who have adopted Sonus
solutions. We're very gratified with the progress we've made in our
drive to become the premier franchise in next-generation voice
infrastructure solutions."
Commenting on the year, Ahmed said: "Fiscal 2000 was a year of
significant growth across every dimension of our business. During the
year, we undertook the initiatives to establish Sonus as the leader in
the market for packet voice solutions. We embarked upon our
acquisition strategy with our purchase of telecom technologies. We
expanded our product portfolio, established new partnerships, and
moved into new geographies. At the same time, we continued to build an
excellent team of networking professionals and an infrastructure that
positions us for success as we enter the next phase of our company's
growth."
In November, Sonus announced that it would acquire privately-held
telecom technologies, inc., a leading developer of next-generation
softswitch solutions. The acquisition of Richardson, Texas-based
telecom technologies and its award-winning INtelligentIP(R)
Softswitch, furthers Sonus' drive to deliver all of the network
intelligence that service providers require to successfully deploy
end-to-end, heterogeneous, packet voice networks. The acquisition,
which also provides Sonus with a strong team of engineering and
product development talent focused on advanced software solutions for
the voice market, was completed today. (See related press release
"Sonus Networks Completes Acquisition of telecom technologies, inc.")
Also in the fourth quarter, Sonus continued to add to its list of
marquee customers. The company announced that XO Communications, one
of the world's fastest-growing providers of broadband communications
services, selected Sonus to provide an IP-based telecommunications
switching platform. XO plans to deploy the Sonus Packet Telephony
suite, including the GSX9000(TM) Open Services Switch, the PSX6000(TM)
SoftSwitch and the SGX2000(TM) SS7 Signaling Gateway, throughout its
North American fiber optic network over the next 18 months.
In December, Sonus was recognized as the worldwide leader in
providing carrier-class media gateway and softswitch solutions to the
telecommunications industry. The company's leadership position was
confirmed in reports issued by three leading industry research firms,
Synergy Research Group, Infonetics and Cahners In-Stat. Synergy
Research ranked Sonus number one in both the carrier-class
voice-over-packet media gateway and softswitch categories.
Additionally, Infonetics named Sonus as the leading provider of
voice/data switches and Cahners In-Stat data showed Sonus as the
leader in purpose-built carrier VoIP gateways.
In the fourth quarter, Sonus continued to expand its international
operations, enabling the company to better support carrier customers
in Europe and Asia as they plan, and begin to deploy, their
next-generation voice networks. In October, Sonus built on its
presence in Europe with the opening of regional offices in France and
Germany. In November, Sonus established direct operations in Asia,
locating its Asia Pacific headquarters in Singapore. Sonus' new direct
operations will serve the rapidly growing Asia service provider
market, including next-generation carriers as well as established
service providers throughout the entire region.
Additionally, Sonus continued to forge relationships that broaden
the solution set the company offers to the service provider market. In
that vein, Sonus formed a partnership with Riverstone Networks under
which Sonus will resell the Riverstone RS series of switch routers to
carrier customers. The combination of the Sonus Packet Telephony suite
and the Riverstone solutions offers service providers a reliable and
cost-effective platform to aggregate and deliver packetized voice
traffic to the network core.
About Sonus Networks
Sonus Networks, Inc. is a leading provider of voice infrastructure
products for the new public network. Sonus' solutions enable service
providers to deploy an integrated network capable of carrying both
voice and data traffic, and to deliver a range of innovative, new
services. The Sonus Open Services Architecture(TM) (OSA) and
award-winning Packet Telephony suite cut the time-to-market for
competitive new service products, allowing carriers and third-party
developers to expand marketshare and build important new revenue
streams. Its highly scalable products fully interoperate with and
extend the life and utility of today's public network. Sonus embodies
in its management and staff decades of experience in developing
carrier-class voice, data and multimedia solutions for implementation
in the world's largest networks. Sonus, founded in 1997, is
headquartered in Westford, Massachusetts. Additional information on
Sonus is available at sonusnet.com.
This release may contain projections or other forward-looking
statements regarding future events or the future financial performance
of Sonus 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 Sonus' Prospectus, dated January 12, 2001, filed with the
SEC, and the associated Registration Statement on Form S-4, which
identify important risk factors that could cause actual results to
differ from those contained in the forward-looking statements. These
risk factors include, among others, the Company's ability to grow its
customer base, dependence on new product offerings, market acceptance
of its products, integration risks relative to its acquisition of
telecom technologies, rapid technological and market change and
manufacturing and sourcing risks.
INtelligentIP is a registered trademark of Sonus Networks.
GSX9000, PSX6000, SGX2000 and Open Services Architecture are
trademarks of Sonus Networks. All other company and product names may
be trademarks of the respective companies with which they are
associated.
-0-
*T
SONUS NETWORKS, INC
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
December 31, 2000 December 31, 1999
Current Assets:
Cash and cash equivalents $ 87,108 $ 8,885
Marketable securities 54,957 14,681
Accounts receivable, net 14,100 --
Inventories 20,668 2,210
Other current assets 2,893 298
Total Current Assets 179,726 26,074
Property and Equipment,
net 14,273 4,269
Other Assets, net 836 439
$ 194,835 $ 30,782
LIABILITIES AND
STOCKHOLDERS'
EQUITY (DEFICIT)
Current Liabilities
Current portion of
long-term
obligations $ 0 $ 1,336
Accounts payable 13,439 1,412
Accrued expenses 16,239 2,691
Deferred revenues 14,451 1,031
Total current liabilities 44,129 6,470
Long-term obligations,
less current portion -- 3,402
Redeemable convertible
preferred stock -- 46,109
Stockholders' Equity
(Deficit):
Common stock 184 22
Capital in excess
of par value 266,488 25,611
Accumulated deficit (83,966) (33,882)
Stock subscriptions
receivable (238) (346)
Deferred compensation (31,697) (16,604)
Treasury stock, at cost (65) --
Total stockholders'
equity (deficit) 150,706 (25,199)
$ 194,835 $ 30,782
SONUS NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenues $ 28,599 $ 0 $ 51,770 $ 0
Manufacturing and
product costs 13,002 770 27,848 1,861
Gross Profit (Loss) 15,597 (770) 23,922 (1,861)
Operating Expenses:
Research
and development 8,199 3,275 26,430 10,780
Sales and
marketing 7,993 2,859 21,569 5,606
General and
administrative 1,728 609 5,477 1,723
Stock-based
compensation 6,382 2,233 26,729 4,404
Total operating
expenses 24,302 8,976 80,205 22,513
Loss from
Operations (8,705) (9,746) (56,283) (24,374)
Interest
income, net 2,433 204 6,245 487
Net loss (6,272) (9,542) (50,038) (23,887)
Beneficial
conversion
feature of
Series C
preferred stock -- (2,500) -- (2,500)
Net loss
applicable to
common stockholders $ (6,272) $ (12,042) $ (50,038) $ (26,387)
Net Loss Per Share:
Basic and Diluted ($ 0.04) ($ 0.63) ($ 0.52) ($ 1.84)
Shares Used in
Computation 148,912 19,110 95,877 14,324
Pro Forma Net
Loss Per Share (1):
Basic and Diluted ($ 0.04) ($ 0.09) ($ 0.37) ($ 0.25)
Basic and Diluted, $ 0.00 ($ 0.07) ($ 0.17) ($ 0.20)
Excluding
Stock-based
Compensation
Shares Used in
Computation 148,912 110,700 135,057 96,188
*T
(1) Pro forma basic and diluted net loss per share has been
calculated assuming the conversion of all outstanding preferred stock
into common stock, as if the conversion had occurred at the date of
issuance.
NOTE: Shares used in the net loss per share and the pro forma net
loss per share calculations are split adjusted.
--30--ba/bos*
CONTACT: Sonus Networks Sonus Networks
Beth Morrissey Stephen J. Nill
978-589-8579 978-392-8277
bmorrissey@sonusnet.com snill@sonusnet.com
KEYORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE NETWORKING
TELECOMMUNICATIONS
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Jan-18-2001 21:05 GMT
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