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Sonus follow-up: Guidance strong, new $100M buyback, CFO leaving

  • Q3 guidance is for revenue of $68M-$72M and basic EPS of $0.01. Consensus is for revenue of $65.9M and diluted EPS of $0.01.
  • 2013 guidance is for revenue of $274M-$278M and diluted EPS of $0.01-$0.02, above a consensus of $269.1M and $0.00.
  • CFO Maurice Castonguay, 61, will leave once a successor is in place. He'll remain for the rest of 2013, if necessary.
  • Services chief Matt Dillon is also leaving. He'll be replaced by sales VP Peter Polizzi.
  • The Q2 beat was fueled by a 52% Y/Y increase in session border controller (SBC) revenue to $29M (42% of total). SBC growth appears to be offsetting slowing VoIP gateway sales.
  • Enterprise sales grew to make up 21% of revenue.
  • Gross margin was 63.6%, +390 bps Q/Q and +670 bps Y/Y.
  • SG&A spend -9% Q/Q to $28.9M thanks to restructuring.
  • The buyback is good for repurchasing 9.5% of shares at current levels.
  • SONS +3.1% AH, CC at 4:45PM ET (webcast).
  • Q2 results, PR
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