Westford, MA, February 28, 2011 - Sonus Networks, Inc. (Nasdaq: SONS), a market leader in next generation IP-based network solutions, today announced results for the fourth quarter and full year ended December 31, 2010.
Revenue for the fourth quarter of 2010 was $83.0 million, compared to $42.7 million in the third quarter of 2010 and $68.7 million for the fourth quarter of 2009. The Company's net income on a GAAP basis for the fourth quarter of 2010 was $11.4 million, or $0.04 per diluted share, compared to a net loss of $22.3 million, or $0.08 per share, for the third quarter of 2010, and net income of $10.3 million, or $0.04 per diluted share, for the fourth quarter of 2009.
Revenue for 2010 was $249.3 million, compared to $227.5 million for 2009, a year-over-year increase of $21.8 million. Gross profit on a GAAP basis for 2010 was $153.2 million, compared to $144.1 million for 2009, reflecting a year-over-year increase of $9.1 million. Operating expenses on a GAAP basis for 2010 were $164.7 million, compared to $155.5 million for 2009. The Company's net loss on a GAAP basis for 2010 was $10.7 million, or $0.04 per share, compared to a net loss of $4.9 million, or $0.02 per share, in 2009.
Gross profit on a non-GAAP basis for 2010 was $155.5 million, compared to $146.5 million for 2009, reflecting a year-over-year increase of $9.0 million. Operating expenses on a non-GAAP basis for 2010 were $149.5 million, compared to $141.3 million for 2009. The Company's net income on a non-GAAP basis for 2010 was $6.8 million, or $0.02 per diluted share, compared to net income of $11.6 million, or $0.04 per diluted share, for 2009.
"I am pleased with the Company's ability to execute during the fourth quarter. These results reflect strength in all of our product platforms, giving us confidence regarding our strategy and future prospects," said Raymond P. Dolan, President and Chief Executive Officer of Sonus. "We will continue to focus on execution in 2011 and bringing world class solutions to the marketplace."
Sonus Financial Guidance for Fiscal Year 2011:
The following forward-looking statements reflect the Company's expectations as of February 28, 2011:
The Company expects to achieve total revenue between $265 million and $285 million for 2011. For 2011, GAAP gross margin is expected to be within the range of 58% to 62%, and total GAAP operating expenses are expected to be in the range of $151 million to $155 million. Non-GAAP gross margin is expected to be within the range of 59% to 63% on an annual basis, and total non-GAAP operating expenses are expected to be in the range of $143 million to $147 million for 2011.
The Company's GAAP financials for the fourth quarter and fiscal 2010, as well as GAAP to non-GAAP reconciliations, are attached to this press release. Additional reconciliations of GAAP to non-GAAP financial information will also be available on the Sonus Investor Relations Website at , About Us, Investor Relations, Financial Information.
Conference Call Details:
Sonus Networks will host a conference call for analysts and investors to discuss its fourth quarter and full year 2010 results as well as certain forward-looking information today at 4:45 p.m. ET.
To listen live via telephone:
Dial-in number: 800-915-4586
International Callers: +1 212-231-2900
To listen live via internet:
Sonus Networks will host a live webcast of the conference call. To access the webcast, visit www.sonusnet.com , About Us, Investor Relations.
About Sonus Networks
Sonus Networks, Inc. is a leader in IP networking with proven expertise in delivering secure, reliable and scalable next generation infrastructure and subscriber solutions. With customers in over 50 countries across the globe and over a decade of experience in transforming networks to IP, Sonus has enabled service providers and enterprises to capture and retain users and generate significant ROI. Sonus products include media and signaling gateways, policy/routing servers, session border controllers and subscriber feature servers. Sonus products are supported by a global services team with experience in design, deployment and maintenance of some of the world's largest and most complex IP networks. For more information, visit www.sonusnet.com.
Important Information Regarding Forward-Looking Statements
This release may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act) regarding future events that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. Such forward-looking statements may relate to, among others, expected financial and operating results, expected growth rates, future stock-based compensation and amortization expenses, future business prospects and market conditions. Such forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated. These include, but are not limited to: difficulties supporting our new strategic focus on channel sales; difficulties expanding the Company's customer base; difficulties leveraging market opportunities; difficulties providing solutions that meet the needs of customers; market acceptance of the Company's products and services; rapid technological and market change; the ability to recruit and retain key personnel; the ability to protect intellectual property rights; the ability to maintain partner, reseller, distribution and vendor support and supply relationships; higher risks in international operations and markets; the ability to hire and retain employees; the impact of increased competition; currency fluctuations; litigation; changes in the market price of the Company's common stock; the timing of the Company's recognition of revenues; actions taken by significant stockholders; failure or circumvention of the Company's controls and procedures; and other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission by the Company, including in Item 1A - "Risk Factors" of our Annual Report on Form 10-K. Any forward-looking statements represent Sonus' views only as of today and should not be relied upon as representing Sonus' views as of any subsequent date. While Sonus may elect to update forward-looking statements at some point, Sonus specifically disclaims any obligation to do so, except as 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.
For more information, please contact:
Wayne Pastore
Senior Vice President and Chief Financial Officer
978-614-8291
wpastore@sonusnet.com
Fran Murphy
Vice President, Finance and Investor Relations
978-614-8148
fmurphy@sonusnet.com
