Today's slump is related to this story. I added at 3.78 on the news and on Su's dissing of a good company, both of which practically guarantee success:
google.com
Analysts warns of Cingular hit to Sonus revenue
Thursday December 8, 12:07 pm ET
Cingular Wireless LLC reportedly is considering shifting purchases of Internet voice switches from Sonus Networks Inc. to Lucent Technologies Inc. Sonus (Nasdaq: SONS - News) is based in Chelmsford, Mass., and counts Cingular among its largest customers for gear managing voice-over-Internet-protocol networks. Lucent (NYSE: LU - News) is based in Murray Hill, N.J.
Cingular is reevaluating VoIP equipment plans now that it has begun purchasing systems from Lucent that connect wireless and landline networks, according to analyst Troy Jensen of Piper Jaffray & Co. in Minnesota.
"Cingular may be capping off deployments of non-Lucent VoIP suppliers due to interoperability concerns," said Jensen, in a statement "We believe this creates a higher risk profile for Sonus."
Sonus previously supplied switching gear for AT&T Wireless, which was acquired by Cingular last year. In the second and third quarter, Sonus recorded $39 million in revenue from the Atlanta carrier, representing more than a third of Sonus sales during the period.
In the third quarter, Sonus lost $2.7 million on $46 million in revenue.
Sonus has a significant amount of revenue backlog from T-Mobile and other companies, Jensen said, which should help to offset any revenue decline from Cingular. |
