Late filer Sonus posted strong sales and says it is now in compliance with federal financial reporting guidelines.
For its second quarter ended June 30, the Chelmsford, Mass., advanced phone switching shop posted a profit of $4.9 million, or 2 cents a share. That reverses the year-ago loss of $7.3 million, or 3 cents a share. Sales jumped 16% from a year ago to $42 million, easing past Wall Street's $39 million estimate.
In the previous quarter ended March, Sonus made a penny a share on sales of $36 million.
The news comes just a week after the
delisted Sonus for its failure to file its second-quarter finances with regulators within 40 days of the quarter's end. Sonus had earlier dodged a brush with delisting based on the filing of its restated financials for previous years.
"With today's filings, we have successfully regained compliance with
reporting requirements," said CEO Hassan Ahmed, in a press release. "We are pleased with our performance for the second quarter and are optimistic about the opportunity ahead of us."
Sonus was delisted from the Nasdaq a week ago for failing to file its financial reports on time despite two extensions. The company has been scrubbing its books ever since an internal audit in February revealed some revenue recognition problems. The company has said it seeks to gain relisting on the Nasdaq after a pending appeal.
The company fired several managers for unethical behavior. Its shares tumbled as the episode broadened into an accounting scandal and the subject of an investigation by the Securities and Exchange Commission.
The company says most of its accounting problem was related to one customer, and to the timing of when sales and shipments were booked as revenue. The biggest adjustment over the three-year restatement was an increase in deferred revenue to about $90 million from the $34 million that had previously been reported.
Sonus shares, which now trade only on the thinly regulated pink sheets, dropped a penny Friday to close at $4.10. While that is about $1 above its 52-week low last month, it is well below the $10 high for the year in January.
The company is expected to discuss its second-quarter results on a conference call Monday, before the market opens.