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 Sonus Networks Reports 2017 First Quarter Results
   Wednesday, April 26, 2017 7:01:00 AM ET

Sonus Networks, Inc. (SONS ), a global leader in secure and intelligent cloud communications, today announced results for the first quarter ended March 31, 2017.

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"We are pleased with our first quarter 2017 financial results, which were slightly better than our previously provided guidance," said Ray Dolan, president and chief executive officer. "We continue to make good progress on our technology investments, with many new products released this past quarter coupled with several strategic customer wins."

"Unlike many of our competitors, Sonus Networks is investing in the real-time communications security market, catering to both service providers and enterprises. We believe that this focus will result in a unique security offering, which leverages our deep experience in SIP," continued Dolan.

Financial Highlights The following table summarizes the consolidated first quarter financial results (in millions, except per share amounts):

                                                          Quarter Ended
                                                          March 31, March 31,
                                                          2017      2016
Product revenue                                           $25.4     $34.8
Service revenue                                           $28.0     $24.4
Total revenue                                             $53.4     $59.2
GAAP gross margin                                         63.2%     64.9%
Non-GAAP gross margin1                                    67.0%     68.4%
GAAP loss from operations as a % of revenue               (20.2)%   (6.6)%
Non-GAAP (loss) income from operations as a % of revenue1 (8.7)%    4.2%
GAAP loss per share                                       $(0.22)   $(0.09)
Non-GAAP (loss) per share or diluted income per share1    $(0.09)   $0.03

-- Cash and investments were $128.8 million at the end of the first quarter 2017, compared to $126.1 million at the end of the fourth quarter of 2016.

1 Please see the reconciliation of non-GAAP and GAAP financial measures in the press release appendix.

Technology and Customer Highlights

-- Introduced Sonus Session Border Controller Software edition Lite (SBC SWe Lite). Sonus’ newest SBC is optimized for small and mid-sized businesses (SMBs), providing a virtual Customer Premise Equipment (vCPE) option for security and interworking of Skype for Business and other Unified Communications (UC) deployments that require an optimized, small resource footprint.

-- Introduced a cloud-native version of its Diameter Signaling Controller Software edition (DSC SWe). The cloud-native DSC SWe provides signaling for both Diameter and SS7 STP deployments, enabling an easy transition from hardware-based signaling equipment to modernized network function virtualization (NFV) architectures.

-- Introduced a new addition to its mobility suite: LTE Calling. This new capability is offered in conjunction with Sonus’ Mobile Client, Virtual Mobile Core and SBC SWe, allowing Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs) to decrease costs and increase subscriber satisfaction.

-- Telegate, a leading telecom solutions provider in Asia-Pacific region, selected the Sonus SBC SWe to secure and control its peering network.

-- Korea Telecom, the largest tier one service provider in South Korea, selected the DSC 8000 as the foundation for its signaling network.

Partnership Highlights

-- Sonus and Palo Alto Networks teamed together to deliver advanced mobile network protections from cyber threats targeting rich communication services. The new architecture is designed to mitigate the impacts of rogue endpoint devices and erroneous IP traffic crossing 4G-LTE mobile networks.

-- Sonus is now partnering with Substentio to offer a cloud based Lawful Intercept Solution.

Management Comments and Outlook "We had the third consecutive quarter of a book-to-bill ratio of greater than one, and maintain a healthy revenue backlog. We expect our first half 2017 revenue will be approximately $107 million, with approximately $54 million in our second quarter. We expect a GAAP loss per share of $0.25 and a non-GAAP loss per share of $0.101 in our second quarter," said Dolan.

Dolan continued, "Looking forward to fiscal 2017, we maintain our previously provided guidance of flat to low single digit revenue growth as compared to fiscal 2016. We expect a GAAP loss per share of $0.25 and maintain our outlook for non-GAAP diluted earnings per share of $0.261 for fiscal 2017."

Susan Villare, interim chief financial officer, commented, "In our first quarter of 2017, we exceeded our February 2017 guidance for both revenue and EPS. Our flagship SBC 7000 and SBC 5000 both performed well, and product revenue from these products was $12.9 million in the first quarter of 2017, compared to $12.5 million in our fourth quarter of 2016. We generated $3.6 million of cash from operating activities in our first quarter of 2017 and ended the quarter with cash and investments of $128.8 million."

1 Please see the reconciliation of non-GAAP and GAAP financial measures in the press release appendix.

Stock Buyback Program Since the inception of the stock buyback program in July 2013, the Company has repurchased a total of 6.6 million shares at an average price of $14.32, for a total of $94.6 million as of March 31, 2017. As of March 31, 2017, there were 49.3 million shares of the Company’s common stock outstanding. Under the current stock buyback program, the Company is authorized to repurchase up to an additional $5.4 million of the Company’s common stock. The Company did not repurchase any shares in the first quarter of 2017.

Conference Call Details Date: April 26, 2017 Time: 8:30 a.m. (ET) Dial-in number: 800-677-8143 International Callers: +1-303-223-4389

The Company will offer a live, listen-only webcast of the conference call via the Sonus Networks Investor website at http://investors.sonusnet.com/events.cfm where supporting materials, including a presentation and supplemental financial and operational data, have been posted.

Replay Information An archived version of the broadcast will be available on the Sonus Networks Investor website shortly after the conclusion of the live event. A telephone playback of the call will be available following the conference call until May 10, 2017 and can be accessed by calling 800-633-8284 or +1-402-977-9140 for international callers. The reservation number for the replay is 21848629.

About Sonus Networks Sonus brings intelligence and security to real-time communications. By helping the world embrace the next generation of cloud-based SIP and 4G/LTE solutions, Sonus enables and secures latency-sensitive, mission critical traffic for VoIP, video, instant messaging and online collaboration. With Sonus, enterprises can give priority to real-time communications based on smart business rules while service providers can offer reliable, comprehensive and secure on-demand network services to their customers. With solutions deployed in more than 100 countries and nearly two decades of experience, Sonus offers a complete portfolio of hardware-based and virtualized session border controllers (SBCs), diameter signaling controllers (DSCs), policy/routing servers, network intelligence applications, media and signaling gateways and network analytics tools. For more information, visit www.sonus.net or call 1-855-GO-SONUS.

Important Information Regarding Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts contained in this release, including statements made by our executive officers in the introductory paragraph and the section "Management Comments and Outlook", statements in the sections "Technology and Customer Highlights" and "Partnership Highlights" and statements regarding our future results of operations and financial position, business strategy, strategic position, plans and objectives of management for future operations and plans for future product development and manufacturing are forward-looking statements. Without limiting the foregoing, the words "anticipates", "believes", "could", "estimates", "expects", "expectations", "intends", "may", "plans", "seeks", "projects" and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to, the timing of customer purchasing decisions and our recognition of revenues; economic conditions; our ability to recruit and retain key personnel; difficulties supporting our strategic focus on channel sales; difficulties retaining and expanding our customer base; difficulties leveraging market opportunities; the impact of restructuring and cost-containment activities; our ability to realize benefits from the acquisitions that we have completed; the effects of disruption from the acquisitions that we have completed, making it more difficult to maintain relationships with employees, customers, business partners or government entities; the success implementing the integration strategies with respect to the acquisitions that we have completed; litigation; actions taken by significant stockholders; difficulties providing solutions that meet the needs of customers; market acceptance of our products and services; rapid technological and market change; our ability to protect our intellectual property rights; our ability to maintain partner, reseller, distribution and vendor support and supply relationships; higher risks in international operations and markets; the impact of increased competition; currency fluctuations; changes in the market price of our common stock; and/or failure or circumvention of our controls and procedures. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. We therefore caution you against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in these forward-looking statements are discussed in Part I, Item 1A. "Risk Factors", Part II, Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in the Company’s most recent Annual Report on Form 10-K. Any forward-looking statement made by us in this release speaks only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Sonus is a registered trademark of Sonus Networks, Inc. All other Company and product names may be trademarks of the respective companies with which they are associated.

Discussion of Non-GAAP Financial Measures Sonus management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. Our annual financial plan is prepared both on a GAAP and non-GAAP basis, and the non-GAAP annual financial plan is approved by our board of directors. Continuous budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis (in addition to GAAP) and actual results on a non-GAAP basis are assessed against the annual financial plan. We consider the use of non-GAAP financial measures helpful in assessing the core performance of our continuing operations and liquidity, and when planning and forecasting future periods. By continuing operations, we mean the ongoing results of the business excluding certain expenses and credits, including, but not limited to: stock-based compensation, amortization of intangible assets, acquisition-related expense, restructuring, certain gains and losses included in other income (expense) and deferred income tax adjustments. We consider the use of non-GAAP earnings (loss) per share helpful in assessing the performance of the continuing operations of our business. While our management uses non-GAAP financial measures as a tool to enhance their understanding of certain aspects of our financial performance, our management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, our presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to Sonus’ financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future.

Stock-based compensation is different from other forms of compensation, as it is a non-cash expense. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to us is based on a stock-based compensation valuation methodology and underlying assumptions that may vary over time. We believe that excluding non-cash stock-based compensation expense from our operating results facilitates the comparison of our financial statements to our historical operating results and to other companies in our industry.

We exclude the amortization of acquired intangible assets from non-GAAP expense and income measures. These amortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that intangible assets contribute to revenue generation. We believe that excluding the non-cash amortization of intangible assets facilitates the comparison of our financial results to our historical operating results and to other companies in our industry as if the acquired intangible assets had been developed internally rather than acquired.

We consider certain transition, integration and other acquisition-related costs to be unpredictable and dependent on a significant number of factors that may be outside of our control. We do not consider these acquisition-related costs to be related to the continuing operations of the acquired business or the Company. In addition, the size, complexity and/or volume of an acquisition, which often drives the magnitude of acquisition-related costs, may not be indicative of such future costs. We believe that excluding acquisition-related costs facilitates the comparison of our financial results to our historical operating results and to other companies in our industry.

We have recorded restructuring expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing our worldwide workforce. Additionally, as previously announced, we expect to record restructuring expense in connection with new restructuring initiatives over the next twelve months. We review our restructuring accruals regularly and record adjustments (both expense and credits) to these estimates as required. We believe that excluding restructuring expense and credits facilitates the comparison of our financial results to our historical operating results and to other companies in our industry, as there are no future revenue streams or other benefits associated with these costs.

In December 2016, we sold a block of IP addresses that we had acquired in connection with our acquisition of Performance Technologies, Incorporated and recognized a gain, net of commission and fees, of $0.5 million. This amount is included as a component of Other income, net, in the three months ended December 31, 2016. We expect to complete the sale of IP address blocks in the second half of 2017 and, accordingly, have included a gain of $0.6 million in our outlook for the full year 2017. We believe that such gains are not part of our core business or ongoing operations. Accordingly, we believe that excluding the other income arising from these sales facilitates the comparison of our financial results to our historical results and to other companies in our industry.

We anticipate that we will reverse $0.7 million of deferred tax assets related to net operating loss carryforwards for our subsidiary in Canada based on positive earnings evidence in the subsidiary over a consecutive three-year period. This adjustment will result in an income tax credit and reduce our provision in the reversal period. We believe that such adjustments are not part of our core business or ongoing operations. Accordingly, we believe that excluding the income tax credit arising from the reversal of the deferred tax assets facilitates the comparison of our financial results to our historical results and to other companies in our industry.

We believe that providing non-GAAP information to investors, in addition to the GAAP presentation, will allow investors to view the financial results in the way management views the operating results. We further believe that providing this information helps investors to better understand our financial performance and evaluate the efficacy of the methodology and information used by our management to evaluate and measure such performance.

For more information Sara Leggat (978) 614-8841 sleggat@sonusnet.com

SONUS NETWORKS, INC.
Condensed Consolidated Statements of Operations
(in thousands, except percentages and per share amounts)
(unaudited)
                                             Three months ended
                                             March 31,               December 31,            March 31,
                                             2017                    2016                    2016
Revenue:
          Product                            $             25,395    $             37,662    $             34,769
          Service                            27,973                  29,910                  24,382
                    Total revenue            53,368                  67,572                  59,151
Cost of revenue:
          Product                            9,753                   12,137                  11,536
          Service                            9,867                   10,041                  9,212
                    Total cost of revenue    19,620                  22,178                  20,748
Gross profit                                 33,748                  45,394                  38,403
Gross margin:
          Product                            61.6%                   67.8%                   66.8%
          Service                            64.7%                   66.4%                   62.2%
                    Total gross margin       63.2%                   67.2%                   64.9%
Operating expenses:
          Research and development           20,209                  19,836                  17,318
          Sales and marketing                14,676                  17,649                  16,595
          General and administrative         9,019                   9,292                   8,371
          Acquisition-related                56                      201                     -
          Restructuring                      570                     1,120                   -
                    Total operating expenses 44,530                  48,098                  42,284
Loss from operations                         (10,782)                (2,704)                 (3,881)
Interest income, net                         258                     179                     164
Other income, net                            1                       508                     103
Loss before income taxes                     (10,523)                (2,017)                 (3,614)
Income tax provision                         (123)                   (614)                   (1,040)
Net loss                                     $           (10,646)    $             (2,631)   $             (4,654)
Loss per share:
          Basic                              $               (0.22)  $               (0.05)  $               (0.09)
          Diluted                            $               (0.22)  $               (0.05)  $               (0.09)
Shares used to compute loss per share:
          Basic                              49,114                  49,232                  49,484
          Diluted                            49,114                  49,232                  49,484
SONUS NETWORKS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
                                                                 March 31,              December 31,
                                                                 2017                   2016
Assets
Current assets
          Cash and cash equivalents                              $             31,931   $             31,923
          Short-term investments                                 59,680                 61,836
          Accounts receivable, net                               39,616                 53,862
          Inventory                                              17,671                 18,283
          Other current assets                                   12,988                 12,010
                        Total current assets                     161,886                177,914
Property and equipment, net                                      10,954                 11,741
Intangible assets, net                                           27,938                 30,197
Goodwill                                                         49,891                 49,393
Investments                                                      37,193                 32,371
Deferred income taxes                                            1,578                  1,542
Other assets                                                     4,914                  4,901
                                                                 $           294,354    $           308,059
Liabilities and stockholders’ equity
Current liabilities
          Accounts payable                                       $               5,988  $               6,525
          Accrued expenses                                       15,786                 25,886
          Current portion of deferred revenue                    46,430                 43,504
          Current portion of long-term liabilities               1,172                  1,154
                        Total current liabilities                69,376                 77,069
Deferred revenue                                                 8,142                  7,188
Deferred income taxes                                            3,255                  3,047
Other long-term liabilities                                      1,566                  1,633
                                      Total liabilities          82,339                 88,937
Commitments and contingencies
Stockholders equity
          Common stock                                           49                     49
          Additional paid-in capital                             1,254,155              1,250,744
          Accumulated deficit                                    (1,047,820)            (1,037,174)
          Accumulated other comprehensive income                 5,631                  5,503
                                      Total stockholders’ equity 212,015                219,122
                                                                 $           294,354    $           308,059
SONUS NETWORKS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
                                                                                                                                            Three months ended
                                                                                                                                            March 31,             March 31,
                                                                                                                                            2017                  2016
Cash flows from operating activities:
             Net loss                                                                                                                       $           (10,646)  $             (4,654)
             Adjustments to reconcile net loss to cash flows provided by operating activities:
                                      Depreciation and amortization of property and equipment                                               1,823                 1,981
                                      Amortization of intangible assets                                                                     2,259                 1,946
                                      Stock-based compensation                                                                              3,263                 4,415
                                      Loss on disposal of property and equipment                                                            -                     14
                                      Deferred income taxes                                                                                 238                   418
                                      Changes in operating assets and liabilities:
                                                               Accounts receivable                                                          14,324                17,267
                                                               Inventory                                                                    315                   (1,237)
                                                               Other operating assets                                                       (405)                 (3,531)
                                                               Accounts payable                                                             (651)                 (1,592)
                                                               Accrued expenses and other long-term liabilities                             (10,530)              (13,855)
                                                               Deferred revenue                                                             3,614                 2,142
                                                                                        Net cash provided by operating activities           3,604                 3,314
Cash flows from investing activities:
             Purchases of property and equipment                                                                                            (998)                 (952)
             Business acquisitions, net of cash acquired                                                                                    -                     (750)
             Purchases of marketable securities                                                                                             (18,632)              (29,574)
             Sale/maturities of marketable securities                                                                                       15,693                21,867
                                                                                        Net cash used in investing activities               (3,937)               (9,409)
Cash flows from financing activities:
             Proceeds from sale of common stock in connection with employee stock purchase plan                                             593                   632
             Proceeds from exercise of stock options                                                                                        51                    5
             Payment of tax withholding obligations related to net share settlements of restricted stock awards                             (496)                 (786)
             Repurchase of common stock                                                                                                     -                     (1,456)
             Principal payments of capital lease obligations                                                                                (10)                  (14)
                                                                                        Net cash provided by (used in) financing activities 138                   (1,619)
Effect of exchange rate changes on cash and cash equivalents                                                                                203                   252
Net increase (decrease) in cash and cash equivalents                                                                                        8                     (7,462)
Cash and cash equivalents, beginning of year                                                                                                31,923                50,111
Cash and cash equivalents, end of year                                                                                                      $             31,931  $             42,649
SONUS NETWORKS, INC.
Supplemental Information
(In thousands)
(unaudited)
The following tables provide the details of stock-based compensation, amortization of intangible assets, and the gain on the sale of IP address blocks included in the Company’s Statements of Operations and the line items in which these amounts are reported.
                                                                                                                               Three months ended
                                                                                                                               March 31,                     December 31,                  March 31,
                                                                                                                               2017                          2016                          2016
Stock-based compensation
                             Cost of revenue - product                                                                         $                    99       $                  100        $                    71
                             Cost of revenue - service                                                                         317                           329                           332
                                                          Cost of revenue                                                      416                           429                           403
                             Research and development expense                                                                  1,317                         1,327                         1,179
                             Sales and marketing expense                                                                       (88)                          917                           1,020
                             General and administrative expense                                                                1,618                         1,631                         1,813
                                                          Operating expense                                                    2,847                         3,875                         4,012
                                                                                       Total stock-based compensation          $               3,263         $               4,304         $               4,415
Amortization of intangible assets
                             Cost of revenue - product                                                                         $               1,566         $               1,501         $               1,627
                             Sales and marketing expense                                                                       693                           506                           319
                                                          Operating expense                                                    693                           506                           319
                                                                                       Total amortization of intangible assets $               2,259         $               2,007         $               1,946
Gain on sale of IP address blocks
                             Other income, net                                                                                 $                      -      $                  498        $                      -
SONUS NETWORKS, INC.
Reconciliation of Non-GAAP and GAAP Financial Measures - Historical
(in thousands, except percentages and per share amounts)
(unaudited)
                                                                               Three months ended
                                                                               March 31,               December 31,            March 31,
                                                                               2017                    2016                    2016
GAAP gross margin - product                                                    61.6%                   67.8%                   66.8%
Stock-based compensation expense                                               0.4%                    0.3%                    0.2%
Amortization of intangible assets                                              6.2%                    3.9%                    4.7%
Non-GAAP gross margin - product                                                68.2%                   72.0%                   71.7%
GAAP gross margin - service                                                    64.7%                   66.4%                   62.2%
Stock-based compensation expense                                               1.2%                    1.1%                    1.4%
Non-GAAP gross margin - service                                                65.9%                   67.5%                   63.6%
GAAP total gross margin                                                        63.2%                   67.2%                   64.9%
Stock-based compensation expense                                               0.8%                    0.6%                    0.7%
Amortization of intangible assets                                              3.0%                    2.2%                    2.8%
Non-GAAP total gross margin                                                    67.0%                   70.0%                   68.4%
GAAP total gross profit                                                        $             33,748    $             45,394    $             38,403
Stock-based compensation expense                                               416                     429                     403
Amortization of intangible assets                                              1,566                   1,501                   1,627
Non-GAAP total gross profit                                                    $             35,730    $             47,324    $             40,433
GAAP research and development expense                                          $             20,209    $             19,836    $             17,318
Stock-based compensation expense                                               (1,317)                 (1,327)                 (1,179)
Non-GAAP research and development expense                                      $             18,892    $             18,509    $             16,139
GAAP sales and marketing expense                                               $             14,676    $             17,649    $             16,595
Stock-based compensation expense                                               88                      (917)                   (1,020)
Amortization of intangible assets                                              (693)                   (506)                   (319)
Non-GAAP sales and marketing expense                                           $             14,071    $             16,226    $             15,256
GAAP general and administrative expense                                        $               9,019   $               9,292   $               8,371
Stock-based compensation expense                                               (1,618)                 (1,631)                 (1,813)
Non-GAAP general and administrative expense                                    $               7,401   $               7,661   $               6,558
GAAP operating expenses                                                        $             44,530    $             48,098    $             42,284
Stock-based compensation expense                                               (2,847)                 (3,875)                 (4,012)
Amortization of intangible assets                                              (693)                   (506)                   (319)
Acquisition-related expense                                                    (56)                    (201)                   -
Restructuring                                                                  (570)                   (1,120)                 -
Non-GAAP operating expenses                                                    $             40,364    $             42,396    $             37,953
GAAP loss from operations                                                      $           (10,782)    $             (2,704)   $             (3,881)
Stock-based compensation expense                                               3,263                   4,304                   4,415
Amortization of intangible assets                                              2,259                   2,007                   1,946
Acquisition-related expense                                                    56                      201                     -
Restructuring                                                                  570                     1,120                   -
Non-GAAP income (loss) from operations                                         $             (4,634)   $               4,928   $               2,480
GAAP loss from operations as a percentage of revenue                           -20.2%                  -4.0%                   -6.6%
Stock-based compensation expense                                               6.1%                    6.3%                    7.5%
Amortization of intangible assets                                              4.2%                    3.0%                    3.3%
Acquisition-related expense                                                    0.1%                    0.3%                    0.0%
Restructuring                                                                  1.1%                    1.7%                    0.0%
Non-GAAP income (loss) from operations as a percentage of revenue              -8.7%                   7.3%                    4.2%
GAAP net loss                                                                  $           (10,646)    $             (2,631)   $             (4,654)
Stock-based compensation expense                                               3,263                   4,304                   4,415
Amortization of intangible assets                                              2,259                   2,007                   1,946
Acquisition-related expense                                                    56                      201                     -
Restructuring                                                                  570                     1,120                   -
Gain on sale of IP address blocks                                              -                       (498)                   -
Non-GAAP net income (loss)                                                     $             (4,498)   $               4,503   $               1,707
Diluted earnings per share or (loss) per share
GAAP loss per share                                                            $               (0.22)  $               (0.05)  $               (0.09)
Stock-based compensation expense                                               0.07                    0.09                    0.08
Amortization of intangible assets                                              0.05                    0.04                    0.04
Acquisition-related expense                                                    *                       *                       -
Restructuring                                                                  0.01                    0.02                    -
Gain on sale of IP address blocks                                              -                       (0.01)                  -
Non-GAAP diluted earnings (loss) per share                                     $               (0.09)  $                 0.09  $                 0.03
Shares used to compute diluted earnings per share or (loss) per share
GAAP shares used to compute loss per share                                     49,114                  49,232                  49,484
Non-GAAP shares used to compute diluted earnings per share or (loss) per share 49,114                  49,522                  49,685
*  Less than $0.1 impact on earnings (loss) per share
SONUS NETWORKS, INC.
Reconciliation of Non-GAAP and GAAP Financial Measures
Outlook - Q2 and FY 2017
(unaudited)
                                                     Three months ending
                                                     June 30, 2017
Earnings (loss) per share
                   GAAP loss per share               $                             (0.25)
                   Stock-based compensation expense  0.08
                   Amortization of intangible assets 0.05
                   Restructuring                     0.03
                   Sale of IP address blocks         (0.01)
                   Non-GAAP outlook                  $                             (0.10)
                                                     Year ending
                                                     December 31, 2017
Earnings (loss) per share
                   GAAP loss per share               $                             (0.25)
                   Stock-based compensation expense  0.30
                   Amortization of intangible assets 0.19
                   Acquisition-related expense       *
                   Restructuring                     0.04
                   Sale of IP address blocks         (0.01)
                   Deferred tax asset adjustment     (0.01)
                   Non-GAAP outlook                  $                              0.26
*                  Less than $0.01 impact on earnings (loss) per share

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sonus-networks-reports-2017-first-quarter-results-300445776.html

SOURCE Sonus Networks, Inc.

https://rt.prnewswire.com/rt.gif?NewsItemId=NE72211&Transmission_Id=201704260701PR_NEWS_USPR_____NE72211&DateId=20170426



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