Veraz Disappoints, Discloses SEC Probe

Veraz Networks (VRAZ) shares are sharply lower today after the company reported disappointing Q1 results and disclosed that the company is being investigated by the SEC.

The company provided few details on the SEC situation, saying only that the SEC “is conducting a confidential informal inquiry,” and that its board has named a special committee to over see “an independent investigation into matters raised by the SEC informal inquiry.”

Veraz said it is co-operating with the SEC probe. Just what they are investigating isn’t clear; analysts this morning noted that the company declined to disclose any details.

As for the earnings, Veraz reported revenue for the quarter of $27.9 million, short of the Street consensus of $30.2 million. The company lost 7 cents a share in the quarter; the Street had expected Veraz to break even. CEO Doug Sabella said the company was “disappointed with our overall financial performance.”

Veraz, which makes IP networking products, today is down 59 cents, or 23.2%, at $1.95.