SONS ( gap up 4, sell-off 7...$18) Sonus Q1 revenue up 45 percent, beats expectations
By Tim McLaughlin
BOSTON, April 10 (Reuters) - Switch maker Sonus Networks Inc. (NasdaqNM:SONS - news) on Tuesday said its first-quarter revenue surged 45 percent and modestly raised its revenue outlook for the rest of the year amid a spending slowdown by big telecommunications carriers.
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Sonus executives told analysts during a conference call they expect 2001 revenue between $180 million and $200 million, compared with prior estimates of $170 million to $190 million.
``Carriers are under enormous pressure to make the right spending decisions,'' Sonus Chief Financial Officer Stephen Nill told analysts. ``As a result, we believe it prudent at this time to only modestly increase our projections for calendar year 2001.''
Westford, Mass.-based Sonus also said it expects full-year pro forma earnings per share of 2 cents to 3 cents. Analysts were looking for the company to break-even.
After the market closed, Sonus said it posted first quarter net income of $151,000 before special items, beating consensus expectations it would lose 2 cents. That compared with earnings before items of about $109,000 in the preceding quarter. The company said the earnings worked out to zero cents a share.
Sonus, which makes switches that handle both voice and data traffic, said revenue increased to $41.5 million, up from $28.6 million in the preceding quarter. During the quarter, Sonus scored a huge win when it signed a multiyear, multimillion dollar contract with Qwest Communications International Inc. (NYSE:Q - news), a major telecommunications carrier of voice and data traffic.
Before the earnings announcement, shares of Westford, Mass.-based Sonus shot up $3.48, or 21.7 percent, to close at $19.49 Tuesday during regular trade on the Nasdaq. But its stock remains well below its year-high of $93.67 amid a broad sell-off of shares in network equipment makers.
Sonus said its first-quarter net loss was $82.5 million, or 51 cents a share, due to stock-based compensation, amortization of goodwill and other charges. In the previous quarter, Sonus posted a net loss of $16 million, or 69 cents a share. |
