Sonus reports strong 2Q
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Cleared by the U.S. Securities and Exchange Commission and fueled by growth in its wireless and foreign markets, Sonus Networks this week reported positive growth for its second quarter.
Sonus reported revenue of $58.1 million, up almost $25 million from the previous quarter and better by $15.7 million than the second quarter last year. Sonus’ quarter ended on June 30th.
The company also turned a net loss of $3.7 million last quarter into a net income of $9.7 million and beat last year’s second-quarter income of $4.9 million.
Sonus’ wireless business saw the most growth, thanks in part to the continuing deployment at Cingular.
“We expect our wireless business and our deployment with Cingular will continue to be an important driver of our business in 2005,” said Hassan Ahmed, chairman and CEO of Sonus.
Technical highlights from the quarter were Sonus’ launch of its IP multimedia subsystem (IMS) strategy--which won a Frost & Sullivan Award for technology innovation--and the launch of its GSX4000 Open Services Switch, a compact version of its high-end softswitch.
Ahmed said it was the most new technology the company has ever introduced.
Sonus also introduced its IMX Application Platform, a Web-based multimedia environment that wireline and wireless service providers can use to develop, integrate, and manage enhanced telecommunication applications and services.
The IMX Platform further strengthens the value proposition of the Sonus Open Services Partner Alliance by allowing service providers to take advantage of existing applications through Sonus' OSPA partners and also to launch new innovative applications from Sonus and its partners.
During the quarter, Sonus announced that Japan’s Jupiter Telecommunications is implementing its platform as the foundation for its new VoIP cable network. The service provider also will be one of Sonus’ first implementations of its IMX Application Platform.
“The Japanese market represents an important opportunity for us. We have a dominant position in this region of the world with nearly every major service provider in the country using Sonus equipment,” Ahmed said. “As the Japanese government encourages operators to move more aggressively to IP, we expect…to expand our Japanese business.”
Sonus reported that several customers, including Level 3 Communications, are now using Sonus' platform to support delivery of E-911. They also reported growing international relationships designed to expand its global position, including NK Networks in Western Europe and TFJY in China. Sonus also aligned with a major consumer electronics retailer, Belkin Corp., in the U.S. Sonus and Belkin have successfully completed interoperability testing between Sonus' Voice over Broadband solutions and Belkin's line of VoIP broadband phone adapters.
Sonus announced that it received written notification from the Securities and Exchange Commission regarding the formal inquiry that the SEC undertook in connection with the Company's previously announced independent investigation of its financial reporting that its investigation had been terminated and that no enforcement action had been recommended.
Overall, Ahmed said that while the VoIP access market is still in an early point in its development, the company is building a pivotal footprint in some of the world’s largest voice-over-broadband services, including those offered by AOL and AT&T.
“Both these companies contributed to our revenue in the second quarter,” Ahmed said.
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