Sonus Networks, Inc.NASDAQ
Sonus Networks: New Products Accelerating Overall Growth - 60% Upside
Cobiaman • 15 Comments
Cobiaman • 15 Comments
Thu, Sep. 29, 3:00 PM
Thu, Sep. 29, 12:46 PM
Wed, Jul. 27, 7:03 AM
Tue, Jul. 26, 5:30 PM
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Tue, Jun. 14, 10:22 AM
- Mark Greenquist, Sonus' (SONS -10.6%) CFO since Nov. 2013, has resigned to "take a similar role at a leading e-commerce platform company." Financial planning/analysis VP Susan Villare will serve as interim CFO while Sonus looks for a successor.
- Sonus has affirmed its Q2 and 2016 revenue/EPS guidance. Shares have nonetheless fallen sharply.
Tue, Jun. 7, 3:31 PM
- Nanocap Inventergy (INVT +10.6%) has settled its six-patent infringement suit against VoIP/4G signaling infrastructure provider Sonus (SONS -0.5%). The deal requires Sonus to make "a one-time payment to Inventergy in exchange for a license to all Inventergy IMS and VoIP patents."
- The license covers Inventergy porfolios purchased from Nokia and Huawei. CEO Joe Beyers: "The royalty rate for the patent license agreement is consistent with the rate we have established in other license agreements for these patent assets... In addition to our patent licensing efforts, we continue to negotiate larger transactions involving the sales of portions of our patent assets."
Wed, Apr. 27, 7:06 AM
- Sonus Networks (NASDAQ:SONS): Q1 EPS of $0.03 beats by $0.05.
- Revenue of $59.2M (+18.1% Y/Y) beats by $0.82M.
Tue, Apr. 26, 5:30 PM
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Mon, Feb. 29, 1:01 PM
- BroadSoft's (BSFT +16.4%) Q4 beat has been accompanied by full-year guidance for revenue of $332M-$340M and EPS of $1.90-$2.10, favorable to a consensus of $325.1M and $1.93. Q1 guidance is for revenue of $70M-$74M and EPS of $0.20-$0.32 vs. a consensus of $68.7M and $0.24.
- Q4 billings (revenue + change in deferred revenue) totaled $91M, up 8% Y/Y. License software billings fell 2% to $36.4M. The deferred revenue balance stood at $111.1M (+9% Y/Y) at quarter's end.
- License revenue (drives future maintenance/services revenue) totaled $35.4M, subscription and maintenance support revenue $30.6M, and professional services/other revenue $23.6M. Non-GAAP operating expenses rose 22% Y/Y to $41M. BroadSoft ended 2015 with $248M in cash and $188M in convertible debt.
- Fellow VoIP/unified communications software provider Sonus (SONS +4%) is also having a good day.
- BroadSoft's Q4 results, earnings release
Tue, Feb. 16, 1:57 PM
- In addition to beating Q4 estimates, Sonus (SONS +24.5%) is guiding for Q1 revenue of $58M-$59M and EPS of -$0.03 to -$0.01, above a consensus of $56.4M and -$0.04.
- 2016 guidance is in-line: Revenue of $255M-$265M and EPS of $0.20-$0.27 vs.a consensus of $259.8M and $0.24.
- "[O]ur fourth quarter revenue results were driven by a high volume of orders from a diverse set of customers," says CEO Ray Dolan. He adds Sonus had no 10% customers in Q4, though one historical 10% customer (AT&T?) came close.
Financials: Lifting Q4 EPS: Non-GAAP gross margin rose 140 bps Q/Q and 250 bps Y/Y to 71.4%, aided by a favorable product mix. GM is expected to drop to 66.5% in seasonally weak Q1.
Also helping: Sales/marketing and G&A spend respectively fell by $2.5M and $0.6M Y/Y to $17.3M and $7.3M; R&D rose by $0.4M to $18M. $1.8M was spent on buybacks. Sonus ended Q4 with $142.2M in cash/investments, $45.9M in deferred revenue, and no debt.
- VoIP hardware/software peer AudioCodes (AUDC +4.7%) is also having a good day. The Nasdaq is up 2%.
- Sonus' Q4 results, earnings release
Tue, Feb. 16, 12:46 PM
Tue, Feb. 16, 7:02 AM
- Sonus Networks (NASDAQ:SONS): Q4 EPS of $0.23 beats by $0.03.
- Revenue of $76.3M (-0.7% Y/Y) beats by $2.39M.
Mon, Feb. 15, 5:30 PM
Wed, Feb. 3, 1:32 PM
- Though the Nasdaq is down 1.5%, many telecom equipment and optical component firms are rallying after network test equipment/telecom software provider Viavi (VIAV +17.6%) and optical component vendor Oclaro (OCLR +11.4%) beat calendar Q4 estimates and issued strong Q1 guidance.
- The list includes optical networking hardware firms Ciena (CIEN +3.9%) and Infinera (INFN +4.9%), component vendors Finisar (FNSR +5.3%) and Alliance Fiber (AFOP +2.2%), Wi-Fi hardware provider Ruckus (RKUS +3.5%), and VoIP and 4G signaling hardware/software firm Sonus (SONS +2.5%).
- Component maker NeoPhotonics (NPTN +14.7%) is posting double-digit gains, aided by an upgrade to Strong Buy from Raymond James. RJ says its checks point to strong sales fueled by Chinese demand and 100G metro optical buildouts.
- Oclaro guided for calendar Q1 (FQ3) revenue of $97M-$100M, soundly above a $90M consensus. The FQ2 beat was fueled by a 21% Y/Y increase in 100G product sales (53% of total revenue), which offset a 7% drop in sales of 10G and lower-speed products (35% of revenue). (earnings release)
- Viavi's beat was aided by a 5.7% Y/Y sales increase for the company's core network enablement (test instrument) business. The unit delivered Y/Y sales growth for the first time in five quarters. (earnings release)
- Viavi and Oclaro's numbers came shortly after optical component contract manufacturer Fabrinet soared in response to an FQ2 beat and strong FQ3 guidance. Fabrinet's revenue from 100G programs nearly tripled Y/Y in FQ2.
Dec. 10, 2015, 2:11 PM
- Ciena (CIEN -16.8%) has tumbled after issuing light FQ1 guidance to go with an FQ4 beat. In addition, the optical networking hardware vendor has guided for 8%-9% FY16 (ends Oct. '16) revenue growth, below a 13.8% consensus.
- With Ciena's outlook raising new fears about telecom capex (under pressure for a while), rival Infinera (INFN -3.3%) is also off, as are optical component vendors Lumentum (LITE -2.2%) and Alliance Fiber (AFOP -1.9%), VoIP/4G signaling infrastructure provider Sonus (SONS -1.6%), and network test equipment/software provider Viavi (VIAV -2%). The Nasdaq is up 0.7%.
- Northland Securities' Tim Savageaux has gone contrarian and upgraded Ciena to Outperform. He notes the company's FY16 outlook still implies an acceleration in organic sales growth (accounts for the Cyan acquisition) to over 7% from FY15's 3%, and calls the selloff an attractive entry point for buying an industry leader.
- Wells Fargo's Jess Lubert (Outperform rating) is also defending Ciena. "While we are disappointed by Ciena’s FQ1 and F2016 outlook, we sense the company’s forecast likely embeds conservative assumptions surrounding the Cyan business and the timing of revenue recognition on several large opportunities. That said, with Ciena having secured 100G metro deployments with many of the world’s largest carriers and likely to see improved mix further benefit margins, we remain positive regarding the company’s 2016/2017 prospects and see the potential for the current forecast to prove conservative if execution remains strong."
Earnings/guidance details: Ciena's FY16 op. margin is expected to be in a range of 11%-12% vs. 10.9% in FY15 before rising to ~15% in the next 3-4 years. Gross margin (non-GAAP) is expected to be in the mid-40s; it was at 44.9% in FQ4, -40 bps Q/Q and +700 bps Y/Y.
The company had two 10%+ customers in FQ4 (possibly AT&T and Verizon) that collectively made up 29.6% of revenue. Non-U.S. customers were 34.5% of revenue, and Cyan contributed $84.4M (12% of total revenue), primarily via its Z-Wave packet-optical (integrated optical networking/Ethernet switching) platform. Altogether, packet-optical products made up 70% of revenue, packet networking (Ethernet switches) 9.2%, optical transport 2.4%, and software/services 18.4%. (earnings release)
Oct. 29, 2015, 11:20 AM
- Northland Securities has upgraded Sonus (SONS +5.4%) to Outperform and set a $10 target a day after the company posted a Q3 beat and offered light Q4 guidance amid low expectations.
- The VoIP infrastructure/4G signaling software provider is now up 9% from Tuesday's close. Shares go for 2.4x a 2016 sales consensus of $265.5M after backing out net cash.