Tuesday, November 6, 2007

Veraz Posts Q3 Revenue of $32 Million

Veraz Networks reported Q3 revenue of $32.2 million, which represents a year-over-year increase of 23% from the third quarter of last year. Third quarter IP product revenues were $19.4 million, an increase of 68% over the third quarter of 2006. Net income was $0.3 million, including $0.5 million in stock-based compensation expense, as compared to the third quarter of last year with a net loss of $3.4 million, including $0.5 million in stock-based compensation expense.

"In Q3, the majority of our IP product revenue came from the initial Next Generation Networks (NGN) deployments for five customers, which was a much higher portion of our revenue mix than what we have seen in prior quarters. Typically, revenues from initial NGN deployments generate lower than normal gross margins and this impact was seen in the decline in Q3 IP product gross margins," commented Al Wood, chief financial officer.

"In Q2 FY07, we raised our guidance from $120 million in revenue and a $4 million loss to $123 - $126 million in revenues and $3 - $6 million in net income. As we are now in the fourth quarter of FY07, we are updating our FY07 guidance to revenues of $124 -126 million, and net income of $2 - 4 million."http://www.veraznetworks.com

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