Sonus Networks Reports 2013 Second Quarter Results

Sonus Networks, Inc. (Nasdaq: SONS), a global leader in SIP-based communications, today announced results for the second quarter ended June 28, 2013. Sonus also announced that its Board of Directors has approved a stock buyback program of up to $100 million.

Second Quarter 2013 Highlights
  • Total revenue was $69.2 million.
  • Total SBC revenue, including product, maintenance and services, was $29.0 million, up 52% over the prior year.
  • SBC product-only revenue was $20.4 million, up 51% over the prior year.
  • Enterprise revenue comprised 21% of total product revenue.
  • GAAP loss per share was $0.02; non-GAAP diluted earnings per share was above expectations at $0.01.
  • Cash and investments totaled $304 million at period end.
  • The Board of Directors has approved a stock buyback program of up to $100 million.

Revenue for the second quarter of 2013 was $69.2 million, compared to $63.3 million in the first quarter of 2013 and $57.6 million in the second quarter of 2012. The GAAP net loss for the second quarter of 2013 was $4.9 million, or $0.02 per share, compared to a GAAP net loss of $13.7 million, or $0.05 per share, in the first quarter of 2013 and a GAAP net loss of $11.7 million, or $0.04 per share, in the second quarter of 2012. Non-GAAP net income for the second quarter of 2013 was $3.2 million, or $0.01 per diluted share, compared to a non-GAAP net loss of $6.4 million, or $0.02 per share, in the first quarter of 2013 and a non-GAAP net loss of $8.6 million, or $0.03 per share, in the second quarter of 2012.

2013 Third Quarter and Full Year Outlook

The Company’s outlook is based on current indications for its business, which may change during the current quarter. Gross margin, operating expenses and EPS are presented on a non-GAAP basis. A reconciliation of the non-GAAP to GAAP outlook and a statement on the use of non-GAAP financial measures are included at the end of this press release.

Third Quarter 2013
                         

Guidance
Total Revenue $68 to $72 million
SBC Total Revenue $28 to $32 million
SBC Product Revenue $21 to $25 million
Gross Margin 64% to 65%
Operating Expenses $42 to $43 million
Basic EPS $0.01
Cash and Investments $300 to $305 million *
Basic Shares 284 million
Diluted Shares 287 million
 

Full Year 2013

Guidance
Total Revenue $274 to $278 million
SBC Total Revenue $120 to $124 million
SBC Product Revenue $98 to $102 million
Gross Margin 64% to 65%
Operating Expenses $171 to $172 million
Diluted EPS $0.01 to $0.02
Cash and Investments

Basic Shares
$305 million *

283 million
Diluted Shares 286 million
 

* Does not reflect potential stock buybacks in the period.

Stock Buyback Program

The Board of Directors has authorized a stock buyback program to repurchase up to $100 million of the Company’s common stock from time to time on the open market or in privately negotiated transactions. The timing and amount of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The buyback program may be suspended or discontinued at any time. The buyback program will be funded using the Company's working capital. As of June 28, 2013, the Company had cash, cash equivalents and investments of $304.0 million. As of June 28, 2013, there were 282,803,260 shares of the Company’s common stock, $0.001 par value, outstanding.

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