The 10-second takeaway
For the quarter ended June 29 (Q2), Sonus Networks met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share expanded.
Margins dropped across the board.
Sonus Networks logged revenue of $57.6 million. The five analysts polled by S&P Capital IQ expected to see a top line of $58.2 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $51.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.03. The eight earnings estimates compiled by S&P Capital IQ forecast -$0.03 per share. GAAP EPS were -$0.04 for Q2 compared to -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.9%, 90 basis points worse than the prior-year quarter. Operating margin was -20.5%, 750 basis points worse than the prior-year quarter. Net margin was -20.4%, 890 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $67.2 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $278.4 million. The average EPS estimate is -$0.03.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 377 members out of 402 rating the stock outperform, and 25 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Sonus Networks a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sonus Networks is outperform, with an average price target of $3.54.
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