Composite of activity today
- Started with this, as part of an update on their options situation:
Fourth Quarter Business Update
The Company also reported very strong customer activity in the fourth
quarter of 2006, resulting in both fourth quarter and full year 2006 orders at
record levels. The growth in Sonus' business is being fueled by continued
demand for its solutions and services globally as major network operators in
each of Sonus' target geographic regions increase the adoption and deployment
of IP-Voice networks. This activity is underscored by the continued traffic
growth on Sonus-based networks and was also recently affirmed by the respected
research firms Synergy Research Group and Infonetics Research in their latest
market reports in which Sonus is recognized as the market leader for the first
nine months of 2006. The Company expects to host a conference call with the
financial community to discuss financial results for the fourth quarter and
fiscal year ended December 31, 2006 on or before March 1, 2007.
"Our tremendous progress in 2006 has culminated in business activity
exceeding our previous outlook for the year with profitable growth well ahead
of estimated market growth. Building on our solid momentum earlier in the
year, we achieved the record order activity in the fourth quarter that we had
anticipated, reflecting our customers' confidence in Sonus' services and
solutions. Sonus received a significant level of orders from a broad base of
new and existing customers throughout the world, setting a new record for the
Company and providing a strong close to a robust growth year for Sonus," said
Hassan Ahmed, chairman and CEO, Sonus Networks. "We look forward to completing
the stock option review as soon as possible and reporting our full financial
results, which will underscore the continuous progress we are making in our
business."
- An update from Citi
SUMMARY
? The new trading year looks to be off to a strong start with two pieces of
positive news for the telecom equipment space affirming our positive stance on
the sector for 2007.
? First, Sonus announced it had record 4Q orders, above its earlier views and
guidance. We think there was a lot of investor concern about potential
weakness at Sonus in 4Q from potentially lower Cingular orders and believe
today's announcement will be viewed by the street as an upside surprise.
? Secondly, the AT&T and BellSouth merger closed last week. This has positive
spending implications, especially in the second quarter and beyond, for a host
of vendors including ALU, JDSU, ADCT, NT, CSCO, JNPR, SONS, CIEN
and ERIC.
- An update from S&P
Based on strong Q4 customer activity, SONS expects to exceed its previous outlook for second half '06 revenues increasing 10% from first half's. Separately, SONS receives an exception from NASDAQ listing qualifications panel to file its Q2 and Q3 financials, which have been delayed because of option backdating issues, by 2/17. With its strong market position in next generation networking, we are positive on SONS' growth potential amid accelerating deployments of carrier VoIP networks. On an improving outlook and better visibility, we are raising our target price by $2 to $7.50
- An update from LEHM
Sonus Networks-SONS raising est & tgt to $9, reit Overweight@LEHM
- And LEHM is now the Street high for revenue estimates.
Q4 '06 - $70MM
FY 2006 - 270MM
FY 2007 - 333MM
FY 2008 - 424MM
- Still nothing from CSFB, Goldman, or the others. |
