Voice-over-IP telephony expert Sonus Networks
Sales fell by 30% quarter-over-quarter and 24% year over year to $42.7 million in the third quarter, leading the company back to reporting a net loss after reporting three quarters either in the black, or near break-even. The reason for the weak sakes was the timing of "several large orders," according to management.
The balance of deferred revenue from largest customer AT&T
Sonus is under new management. CEO Ray Dolan has all of three weeks of experience on the job but 25 years of industry-specific background to fall back on. Ray will need all of it as he faces down direct competition by major network equipment builders from Cisco Systems
That also makes buyout bait out of Sonus, and low share prices could fuel acquisition interest in the company. Dolan fought off questions on that topic in the earnings call, but his reign might be a short one if hungry sharks start circling the waters.
Do you see Sonus bouncing back, going under, or getting eaten in the near future? Share your theories in the comments below.
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