Sonus 2Q loss narrows, projects surprise FY profit

Sonus Networks 2Q loss narrows, projects surprise 2013 profit; finance chief to depart company

Associated Press

WESTFORD, Mass. (AP) -- Sonus Networks Inc. said Monday its second-quarter loss narrowed by 58 percent, helped by higher revenue from both products and services, and projected a surprise profit for the full year.

The Westford, Mass.-based company, which makes Internet hardware and software, also said it would buy back up to $100 million in stock and said its chief financial officer plans to leave the company.

For the three months ended June 28, Sonus said its loss totaled $4.9 million, or 2 cents per share. That compares with a loss of $11.7 million, or 4 cents per share, in the 2012 second quarter. Excluding one-time items, the company posted an adjusted profit of a penny per share for the recent quarter.

Revenue rose 20 percent to $69.2 million, from $57.6 million last year.

Analysts, on average, expected a breakeven quarter on a per-share basis, on $67 million in revenue, according to FactSet.

For the current quarter, Sonus projected revenue of between $68 million and $72 million. That was above average analysts' average prediction of $65.9 million, with estimates ranging from $57.6 million to $69.2 million.

For the full year, Sonus said it expects to earn between 1 cent and 2 cents per share, on revenue of between $274 million and $278 million. Analysts expect the company to breakeven for the year on a per-share basis, on $269.1 million in revenue.

Crediting its strong finances and successful restructuring, Sonus said it would repurchase up to $100 million of its common stock.

The company also said Monday that Maurice Castonguay, its senior vice president and CFO, plans to leave the company. Castonguay will help with the search for a new CFO and remain in his job through the end of the year, if necessary, Sonus said.

Sonus shares rose 6 cents to $3.60 in aftermarket trading, after ending the regular session down 3 cents at $3.54.

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