Damn, no EPS, no 10-Q thanks to 'options review'. What a great way to mess up what was otherwise a great quarter. How long can such a review take to complete? A week, max? Do I smell a rat?
From Yahoo!:
Sonus Networks Reports 2006 Second Quarter Revenue Results
Monday August 7, 4:05 pm ET
Company Reports Record Revenue, Strong Growth in Q2 and Increased Non-GAAP Profitability
CHELMSFORD, Mass., Aug. 7 /PRNewswire-FirstCall/ -- Sonus Networks, Inc. (Nasdaq: SONS - News), a leading supplier of service provider Voice over IP (VoIP) infrastructure solutions, today reported its revenue results for the second quarter ended June 30, 2006.
Revenues for the second quarter of fiscal 2006 were $64.4 million compared with $60.0 million in the first quarter of fiscal 2006 and $58.1 million in the second quarter of fiscal 2005. Revenues for the first six months of fiscal 2006 were $124.4 million compared with $91.7 million in the same period last year, reflecting an increase of 36%.
"We are very pleased to report another quarter of solid execution across all aspects of the company, underscored with record revenue performance. Sonus is outpacing the market by delivering the industry's most advanced technology and an unrivaled dedication to our customers' success," said Hassan Ahmed, chairman and CEO, Sonus Networks. "In the first half of 2006, Sonus expanded its business around the world becoming a standard for IP-voice networks globally. The amount of traffic on our customers' Sonus-based networks has continued to set new levels, demonstrating the strength of our solutions and driving additional demand for our products. As leading network operators embark on new initiatives to revolutionize their networks, Sonus is proud to be their provider of choice as we strive to meet our customers' needs and provide increasing returns for our shareholders."
Non-GAAP Financial Metrics Highlights:
The Company is not providing detailed GAAP or non-GAAP financials for the quarter at this time because the Company has voluntarily initiated a review of the processes by which it has historically issued and accounted for employee stock options. The non-GAAP financial metrics noted below do not include associated stock-based compensation expense or any impact that may result from the stock option review.
* First half of 2006 revenue increased 36% compared with the first half of
2005;
* Second quarter gross margins increased modestly from the first quarter
of 2006;
* Second quarter operating expenses declined modestly as a percentage of
revenue from the first quarter of 2006;
* Second quarter net income increased meaningfully from the first quarter
of 2006;
* Deferred revenue increased $13.3 million to $115.5 million from the
first quarter of 2006;
* Cash, cash equivalents, marketable securities and long-term investments
as of the end of the second quarter were $318.3 million, after repaying
the Company's $10 million outstanding convertible note; and
* Finally, accounts receivable increased $43.9 million in the quarter.
"Given the current focus on employee option grants by public companies, we have proactively initiated a review of our documentation and accounting for historical stock option grants. In the spirit of good corporate governance, we are voluntarily evaluating the processes we used to issue options to employees in the past to be sure they are treated properly for accounting purposes. We look forward to providing you with the full details of our financial results, which reflect Sonus' leadership position and growing profitability," continued Hassan Ahmed.
Second Quarter Fiscal 2006 Business Highlights:
In Q2 2006, Sonus continued to extend its leadership position around the world, particularly in Europe, partnering with some of today's most innovative providers of communications services. In the second quarter, the Company announced a multimillion dollar contract with a subsidiary of Carphone Warehouse, Opal Telecom, one of the United Kingdom's largest telecommunications network operators. Deploying a full suite of Sonus' IP Multimedia Subsystem (IMS)-ready solutions, the Opal network is designed to reach nearly 70% of the population in the UK and to position Carphone Warehouse as a leading next generation telecommunications provider.
Also in Europe, Sonus announced that it was selected by Interoute, owner and operator of one of Europe's most advanced IP-based telecommunications networks, for a multimillion dollar expansion of its voice network into several major markets, including Madrid, Spain and Milan, Italy. Further, Tradingcom Europe Group, Europe's leading telecommunications capacities trader, selected Sonus' IMS-ready architecture solution as the foundation for its complete, end-to-end IP-based voice network. The Sonus-based network is designed to improve Tradingcom's operating leverage from its wholesale business and broaden its market reach by delivering a new Voice over WiFi (VoWiFi) service. Finally, Telio, the fastest growing access independent VoIP provider in Europe, announced that it has selected Sonus' solutions as the foundation for its next generation IP-based network.
In North America, Sonus announced contracts with Group of Gold Line, the largest prepaid long distance calling card provider in Canada; Neutral Tandem, Inc., the industry's premier tandem and voice peering company for competitive carriers; and TeleBermuda International Limited.
Sonus' success and momentum to date in 2006 was recognized by third party industry research organizations Infonetics Research and Synergy Research Group. According to Infonetics, Sonus was the market share leader in several segments of the VoIP market for Q1 2006. The Company was also named the Q1 worldwide market share leader for high density media gateways by Synergy Research Group. On a regional level, Synergy Research Group reported that Sonus holds leading market share positions in both the United States and Japan. In addition, Gartner's "Magic Quadrant for Softswitch Architecture, 2006" report (Bettina Tratz-Ryan, et al, March 29, 2006), which ranks vendors in the IP-based voice industry, positioned Sonus in the "Leader" quadrant.
In Q2, Sonus continued to drive innovation across the industry by teaming with some of the industry's most innovative companies as part of its Open Services Partner Alliance (OSPA), one of the industry's most advanced interoperability program. Sonus announced new partnerships with NMS communications to streamline the delivery of IMS-based applications and services to mobile handsets; Verint Systems Inc. to enable service providers to address interception requirements for emerging VoIP and broadband packet-data services; Netcentrex to advance consumer access to next generation voice applications; and, Atreus Systems, to deliver a fully integrated, best-in-class Self-care Access Portal that empowers service providers to automate the configuration and management of VoIP features. At Globalcomm 2006 in June, Sonus demonstrated how its own applications and services, built with Sonus' IMS application development tools, including the Sonus IMX(TM) Multimedia Application Platform, are continuing to revolutionize the communications paradigm.
"The market is reaching a critical inflection point. The impact of IP-based voice solutions can be seen in all aspects of the telecom industry. In North America, Asia and Europe, wireless and wireline network operators, incumbents and new competitors, have all recognized that Sonus can deliver the solutions and support that will help to reshape the industry and usher in a new age of communications that goes far beyond traditional voice services," continued Ahmed. "With industry analyst forecasting that the market will grow 20% - 25% annually, Sonus is outpacing the market's growth. Given our leadership position, strong product portfolio and solid execution, this is a trend that we expect to continue, and we expect that our 2006 annual revenue growth to reflect this position."
Voluntary Stock-based Compensation Review:
The Company is not providing detailed GAAP or non-GAAP financials for the quarter ended June 30, 2006 today because the Company is voluntarily reviewing the processes by which it has historically issued and accounted for employee stock options. Company management and the Audit Committee of its Board of Directors are performing this review with the assistance of independent advisors. The Company will not be in a position to publish its Form 10-Q for the quarter ended June 30, 2006 until the review has been completed and the Company determines if any non-cash, stock-based compensation adjustments are necessary and the impact, if any, to its financial statements. Further, the Company does not expect that the review will be completed in time for the Company to file its Form 10-Q by August 9, 2006. As a result, the Company intends to file a Form 12b-25 with the Securities and Exchange Commission stating that it will be unable to file its Form 10-Q until its review has been completed
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