No matter how you measure it, Sonus Networks third quarter revenues dropped. The company cites a slowdown in September as the cause.
Sonus reported $62.2 million in revenues for 3Q08, compared to $87.7 million in 2Q08 and $75.8 million in 3Q07. It's an 18 percent decrease compared to 3Q07. There's also a 3Q08 GAAP loss of $19.6 million and around $0.07 per share, definitely down from GAAP income of $3.5 million in 2Q08.
In the company's statement of 3Q numbers, officials were blunt.
"We had a challenging quarter, and are disappointed with our results," said Richard Nottenburg, president and CEO of Sonus Networks. "We experienced a downturn during September that impacted our revenue and earnings performance." The statement goes on to tout Sonus's $400-ish million in cash and investments - a typical its-ok-don't-panic move.
However, the economy is not the only issue the company is dealing with. Last year, Sonus purchased Zynetix, a UK-based GSM softswitch and femtocell software company, for $13.2 million in cash and is now turning around and dumping it - hmm, what's that all about? Sonus went big on wireless as one of its four key areas of growth during that time and has been bullish on femtocells in Europe and Asia.
Both events are likely to result in further grumbling by Sonus stockholders. Over the summer, its largest investor Legatum Capital sent a letter to Sonus execs grumbling about the company's five-year low stock price.
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