Sunday, May 7, 2006

Sonus Reports Q1 Revenue of $60 Million

Sonus Networks reported Q1 revenues (ending 31-Mar-06) of $60 million, compared with $57.2 million in the fourth quarter of fiscal 2005 and $33.6 million for the first quarter of fiscal 2005. Net income on a GAAP basis for the first quarter of 2006 was $5.7 million or $0.02 per share.

"Q1 was another solid quarter for Sonus. We reported record quarterly revenues and healthy cash flow from operations, while making strides toward achieving our long-term financial model," said Hassan Ahmed, chairman and CEO, Sonus Networks.

Sonus also noted that it has completed two years of selling its products through Motorola, and, as a result of its positive history with Motorola, is now reporting this revenue on a sell-in basis where revenue is recognized upon the shipment of products to Motorola, resulting in approximately an additional $3 million in revenue being recognized in the first quarter of fiscal 2006.

In Q1 2006, Sonus announced new or expanded customer relationships with eight service providers. In North America, Vonage deployed Sonus' IP Multimedia Subsystem (IMS)-ready solution to support traffic from their rapidly growing subscriber base. Also in the U.S., West Interactive Corporation and 360networks Corporation each selected Sonus' IMS-ready architecture. Sonus also announced Intrado as a customer. In Japan, KDDI selected Sonus as its exclusive vendor for its convergence-enabled packet voice network. Sonus also announced its first Japanese wireless customer, WILLCOM. JAPAN TELECOM, which is a wholly owned subsidiary of SOFTBANK, also announced that it selected Sonus as the foundation for its next-generation IP-based voice network.

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