Updated from July 19Sonus Networks ( SONSE) completed an internal investigation linked to a restatement of its 2001-03 fiscal years. Shares of the company rallied 16% early Tuesday, though details remained scarce. The company didn't disclose any terms of the restatement. The maker of networking gear said that its primary impact is to adjust the "timing of revenue recognition and certain other financial statement accounts," particularly on deferred revenue. Chelmsford, Mass.-based Sonus said other material restatements "include adjustments to purchase accounting, impairments, accruals and deferred compensation." On a call with investors, CEO Hassan Ahmed said the company's audit is nearly done and will be ready within a week. He said the company had taken actions following its internal probe including the firing of Sonus' controller. The company said it would file results with regulators in about a week, and that it would seek more time to regain compliance with Nasdaq listing requirements. The company has been trading under an exemption since problems with its books cropped up early this year. Ahmed said the company found it had carried accruals in excess of actual value and needed to adjust to appropriate levels. Most of the restatement resulted from changes with one customer. Sonus said in early February that it was examining its revenue-recognition procedures going back two years after firing several nonexecutive employees for unethical behavior. That disclosure knocked the stock to the low $5 range from $6.69. The company's stock had fallen there from around $10 in January, when it first said 2003 results would be delayed. Sonus disclosed last month that the Securities and Exchange Commission was looking into the matter. The statement comes at the end of a day in which Sonus shares rallied as a Wall Street analyst predicted the company would come out this afternoon with an essentially clean bill of health. On Tuesday, the stock was up 65 cents in early action at $4.75.
Even though AT&T tried a last-minute bribe of promising 5,000 new U.S. jobs to help gain support for the deal, the Justice Department filed a complaint to fight the combination of the nation's No. 2 and No. 4 wireless carriers.