Hit hard by a Q3 revenue miss in October, Sonus (SONS +7.1%) is shooting higher after beating Q4 revenue estimates and issuing strong guidance. The company expects Q1 revenue of $70M ($67M exc. the PTIX acquisition) and EPS of -$0.01 vs. a consensus of $64.4M and -$0.01, and 2014 revenue of $300M ($285M exc. PTIX) and EPS $0.06 vs. a consensus of $285.6M and $0.05.
Session border controller sales rose 59% Y/Y in Q4 (better than Q3's 44% growth), and made up 55% of revenue (inc. 70% of product revenue). But declining sales of other products (inc. VoIP gateways) led total revenue to only rise 1%.
Gross margin was 64.7%, +570 bps Y/Y. $22.3M was spent on buybacks.
Q4 results, PR