Sonus Networks takes big Q1 revenue hit

Reporting its first-quarter 2009 numbers, Sonus Networks reported revenue of $41 million and a net loss on a GAAP basis of $16.2 million. While the company ended the quarter with cash and investments of $386 million, Wall Street analysts predicted the company would lose 3 cents a share - not the 6 cents per share reported today.

Sonus had revenues of $89.5 million in Q4 2008 and $73.6 million in revenues in Q1 2008.  The company lost $99 million in Q4 2008, which translates to a loss of $0.37 a share. Back in Q1 2008, the company had income of $1 million.

In a conference call Tuesday, Sonus CEO Richard Nottenburg said 2009 was "going to be a difficult year," but the company saw some positive signs with more RFP activity. "Hopefully that RFP activity will drive more capex," he said.

Sonus ended the quarter with 910 employees and executives said that the company continued to hire in "lower cost geographies" to lower cost. However, the number of customers at the end of the Q1 - 82 - remained steady from Q4 2008, with AT&T being Sonus's biggest customer.

During the call, analysts attempted to pin down the current relationship between BT and Sonus, with one suggesting that BT and Sonus are now going down a "different path."  It was a characterization with which a Sonus executive appeared to agree.

For more:
- Sonus's terse financial announcement. Release.

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