Sonus Networks swings to 3Q net loss, revenue beats consensus
November 08, 2007: 05:05 PM EST
NEW YORK, Nov. 8, 2007 (Thomson Financial delivered by Newstex) -- Sonus Networks (NASDAQ:SONS) Inc. late Thursday reported it swung to a third-quarter net loss widened to $26.8 million, or 10 cents a share, from a net profit of $14.4 million, or 6 cents a share, a year earlier.
Analysts had expected the company to post breakeven results for the quarter.
Revenue for the period ended Sept. 30 rose to $76.6 million from $76 million. Analysts had expected revenue of $76 million.
Additionally, Sonus said it reached a settlement in the lawsuit against the company alleging violations of federal securities laws in connection with its 2004 restatement. Under the settlement, the company agreed to pay $40 million to the shareholder classes in the case.
Sonus said it has recorded a $40 million charge and related liability in the third quarter for the full amount of the settlement. The company also said it hasn't determined how much, if any, of its insurance coverage will be allocated to the 2004 restatement settlement.
The stock of the Westford, Mass.-based provider of Voice-Over-Internet Protocol infrastructure solutions closed the regular session at $6.94.
Wanfeng Zhou
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