Wed, Feb. 25, 10:41 AM
- In addition to beating Q4 estimates, BroadSoft (NASDAQ:BSFT) has guided for Q1 revenue of $52M-$56M (mostly above a $52.1M consensus) and full-year revenue of $260M-$268M (above a $253.6M consensus).
- With the VoIP/unified communications software provider planning to spend aggressively, Q1 and full-year EPS guidance is respectively at $0.13-$0.21 and $1.40-$1.64 vs. consensus estimates of $0.16 and $1.55.
- Q4 billings totaled $84.4M, +17% Y/Y and well above revenue of $65.8M; BroadSoft chalks it up to strong demand for its hosted unified communications offerings. The deferred revenue balance rose 31% to $101.5M.
- License revenue (drives future support/services revenue) rose 27% Y/Y in Q4 to $34.8M. Subscription/maintenance support revenue rose 25% to $25.2M, and professional services/other revenue 30% to $5.8M.
- Ahead of the expected spending pickup, GAAP operating expenses fell by $700K Y/Y to $38.3M (boosted EPS). Sales/marketing totaled $18.5M, R&D $12.3M, and G&A $7.5M.
- Fellow VoIP/UC tech plays Sonus (SONS +2%) and AudioCodes (AUDC +1.7%) are also higher.
- Q4 results, PR
Wed, Feb. 18, 10:43 AM
- Though it just slightly missed Q4 revenue estimates, Sonus' (SONS -7.5%) product revenue (drives future services revenue) rose 2% Y/Y in Q4 to $46.6M, down from Q3's 10%. Likewise, "growth-related revenue" (tied to VoIP session border controllers and 4G diameter signaling controllers) rose 2% to $42.5M, down from Q3's 41%.
- Services revenue fell by $100K Y/Y in Q4 to $30.2M. Growth products made up 68% of 2014 product sales.
- Q1 guidance is for revenue of $74M and EPS of $0.03 vs. a consensus of $73.6M and $0.04. Full-year guidance is for revenue of $326M-$330M and EPS of $0.54-$0.58 vs. a consensus of $327.4M and $0.56.
- Lifting Q4 EPS: Gross margin rose to 68.9% from 67.5% in Q3 and 64.7% a year ago. Operating expenses rose 6% Y/Y to $45.3M, and 200K shares were repurchased.
- Shares are at their lowest levels since October. They had been in a fairly narrow trading range in recent months.
- Q4 results, PR
Wed, Feb. 18, 7:06 AM
Tue, Feb. 17, 5:30 PM
Thu, Feb. 12, 11:03 AM
- Cisco (NASDAQ:CSCO) beat FQ2 estimates on the back of 8% Y/Y product growth (aided by favorable comps), offered in-line guidance (better than feared, given forex pressures), and reported a 5% increase in product orders. Enterprise, SMB, and public sector orders respectively rose 10%, 8%, and 7%, and service provider orders dropping 1% (compares with a 10% FQ1 service provider drop).
- Cisco still isn't modeling a rebound in service provider or emerging markets demand for several quarters, and forecasts global service provider capex will be down by a mid-single digit % in 2015. But it's more optimistic about enterprise, public sector, U.S., and EMEA demand.
- Telecom and networking equipment vendors, many of whom have been hit hard by capex pressures, are rallying following Cisco's numbers, as are a couple of component/chip suppliers. The Nasdaq is up 0.7%.
- Notable gainers include Alcatel-Lucent (ALU +4.7%), Aruba (ARUN +3.4%), Ruckus (RKUS +5.1%), Sonus (SONS +3.4%), Extreme Networks (EXTR +3.4%), Brocade (BRCD +1.9%), Adtran (ADTN +3%), Infoblox (BLOX +2.7%), Finisar (FNSR +2.1%), Cavium (CAVM +2%), Ixia (XXIA +1.9%), and Mavenir (MVNR +3.4%).
- Cisco's 18% Y/Y wireless product sales growth appears to be going over well with Aruba and Ruckus investors, and its 11% switching growth with Extreme and Brocade investors.
Thu, Jan. 8, 9:25 AM
- Sonus (NASDAQ:SONS) expects Q4 revenue of $77M, towards the low end of a $76M-$82M guidance range and below a $79.8M consensus. EPS is expected to be at $0.03, in-line with prior guidance and consensus.
- The company says there was "limited-to-no budget flush from our service provider customers" in Q4, as previously feared. Shares rose yesterday after Procera and Cyan's pre-announcement stoked hopes for a strong Q4.
- Sonus also announces: 1) A 1:5 reverse split will go into effect on Jan. 30, after being approved by shareholders last month. 2) It has bought the software-defined networking (SDN) tech assets of startup Treq Labs for $10.1M.
- Treq's offerings for the budding SDN market are focused on VoIP, IP video, and unified communications traffic (areas Sonus is quite familiar with), allowing enterprises to priority latency-sensitive traffic and quickly provision network services on an app-by-app basis.
- Sonus will pay an earn-out of 6.6M shares through 2017, if the SDN business produces at least $60M in revenue during that period. An 11M-share earn-out will be paid if $150M in revenue is produced.
- Full Q4 results are due on Feb. 18.
Nov. 5, 2014, 1:37 PM
- With shares down sharply from their 2013 highs going into earnings, BroadSoft's (NASDAQ:BSFT) Q3 beat is overshadowing the company's subdued Q4 guidance: Revenue of $60M-$65M and EPS of $0.48-$0.64 vs. a consensus of $62.2M and $0.61.
- Also going over well: Software license revenue (drives future services revenue) rose 20% Y/Y in Q3 to $25.7M. Subscription/support revenue rose 37% to $24.2M, and professional services/other revenue 27% to $4.7M.
- Gross margin fell to 76% from 81% a year ago. However, opex fell to 57% of revenue from 60%.
- VoIP/unified communications software peer Sonus (NASDAQ:SONS) is also rallying, adding to the gains it saw on Monday following an insider buy.
- Q3 results, PR
Oct. 23, 2014, 11:09 AM
- Sonus (NASDAQ:SONS) expects Q4 revenue of $76M-$82M and EPS of $0.03; the former is below an $82.2M consensus, while the latter is in-line. With several other AT&T suppliers having already provided soft guidance, the revenue outlook is being taken in stride.
- Q3 product revenue +10% Y/Y to $44.9M. Service revenue +3% to $28.3M. "Growth-related revenue," which consists of VoIP session border controllers and 4G diameter signaling controllers, rose 41%, and made up 56% of total revenue.
- Gross margin rose to 67.5% from 65.2% in Q2 and 63.4% a year ago. Q4 GM guidance is at 65.5%-66%. GAAP opex rose only 1% Y/Y to $52.1M. $6.4M was spent on buybacks.
- Fellow VoIP hardware/software provider AudioCodes (NASDAQ:AUDC) is turning in a good day amid a market rally. Its Q3 report is due on Oct. 30.
- Q3 results, PR
Oct. 23, 2014, 7:09 AM
Jul. 30, 2014, 7:07 AM
Jul. 29, 2014, 5:30 PM
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Jul. 23, 2014, 1:45 PM
- Juniper's (JNPR -9.8%) soft Q3 guidance, along with its related commentary on U.S. telco demand, is taking a toll on fellow telecom equipment suppliers Cisco (CSCO -1.2%), Ciena (CIEN -3.2%), Cyan (CYNI -2.5%), Zhone (ZHNE -6.5%) Ruckus (RKUS -1.6%), and Sonus (SONS -3.8%).
- Optical component vendors JDS Uniphase (JDSU -2.9%) and Finisar (FNSR -2%) are also off, as are several chipmakers (previous) with heavy networking/telecom exposure.
- On its CC (transcript), Juniper stated "market dynamics including M&A activity" are affecting the "sequencing and timing" of U.S. carrier projects. Jefferies reported in June AT&T has significantly cut its wireline capex in the wake of the DirecTV deal.
- There has been speculation AT&T is keeping a lid on wireline capex ahead of the full rollout of its ambitious Domain 2.0 initiative, which will feature the launch of software-defined networking (SDN) and network functions virtualization (NFV) platforms.
- Juniper insists it remains well-positioned with the aforementioned U.S. carriers, and that it has "major design wins" for next-gen projects. The company adds demand remains healthy with U.S. federal, cable, and Internet clients.
- The company's router revenue rose 7% Y/Y in Q2 to $617.8M, and its switch revenue rose 25% to $199.8M. Security product revenue fell 8% to $111.6M. The Junos Pulse VPN software ops (about to be sold for $250M) contributed $31.4M in revenue ($15.9M product, $15.5M service).
Apr. 24, 2014, 9:22 AM
- NXP (NXPI) expects Q2 revenue of $1.30B-$1.35B and EPS of $1.00-$1.10, largely favorable to a consensus of $1.30B and $1.02. Shares +2.5% premarket. (Q1 results, PR)
- Yandex (YNDX) expects 25%-30% 2014 ruble-based revenue growth vs. a consensus for 29% growth. Shares -0.9% premarket. (Q1 results, PR)
- Sonus (SONS) expects Q2 revenue of $73M-$75M ($33M-$35M from SBCs and diameter signaling) and EPS of $0.01 vs. a consensus of $74M and $0.01. Full-year guidance is for revenue of $300M ($168M from SBCs and diameter signaling) and EPS of $0.05 vs. a consensus of $301.8M and $0.05. Shares +2.9% premarket. (Q1 results, PR)
- Logitech (LOGI) is reiterating FY15 (ends March '15) guidance for revenue of $2.16B and op. income of $145M. The revenue forecast is below a $2.17B consensus. Shares -2.9% premarket. (FQ4 results, PR)
Apr. 24, 2014, 7:19 AM
Mar. 13, 2014, 12:48 PM
- Ahead of its investor day (webcast), Sonus (SONS -6.4%) states it's aiming for 10% 2015 revenue growth; that's favorable to a 6.8% consensus.
- The company, which had a 2013 op. margin of just 2.7%, also says it's shooting for a 10% 2015 op. margin, aided by top-line growth, operating leverage, and improving gross margins. The GM improvement will partly stem from higher standards-based product sales and a mix shift to software - PTIX should help with the latter.
- Sonus jumped last month after beating Q4 revenue estimates on the back of strong session border controller sales (offsetting weak VoIP gateway sales), and setting its Q1/2014 guidance. Shares made new 52-week highs earlier in March.
Feb. 20, 2014, 2:10 PM
- 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
SONS vs. ETF Alternatives
Sonus Networks Inc is aprovider of networked solutions for communications service. It is asupplier of Session Initiation Protocol-based communication equipment including VoIP, video and Unified Communications through IP networks.
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