Session Border Controller Featured Article

November 07, 2012


Sonus Networks Third Quarter Revenue Exceeds Expectations


By Ashok Bindra
TMCnet Contributor

Global SIP communications provider Sonus Networks (News - Alert) reported 2012 third quarter financial results. The consolidated results, which include the partial quarter financial effect of recently acquired Network Equipment Technologies (NET (News - Alert)), indicate that the Q3 session border controller (SBC) revenue exceeded expectations.


In fact, according to Sonus Networks, this is the third straight fiscal 2012 quarter with revenue beating projected goals.

The report shows that the total revenue for the company was $57.0 million. The session border controller revenue, which includes maintenance and services, was $25.4 million, compared to $19.1 million in the second quarter of 2012 and $13.9 million in the 2011 Q3.

Of the total SBC revenue, the product alone accounted for $20.4 million in Q3 2012, compared to $13.5 million in Q2 2012. It was just $10.4 million in the Q3 of 2011.

Percentage-wise, the report shows that the SBC product revenue represented a record 61 percent of the total product revenue for the company in 2012.

Regarding customers, the company won 40 new customers in the Q3 quarter, 11 for Sonus and 29 for NET (post-acquisition). Furthermore, Sonus Networks reported that SBC products represented the largest portfolio of MS Lync certified SBCs on the market.

By comparison, the net revenue of $57.0 million in Q3 2012 was below Q2 2012 revenue. The company reported revenue of $57.6 million in the Q2 of fiscal 2012 and $66.4 million in the Q3 of fiscal 2011. The GAAP net loss for the Q3 of fiscal 2012 was $15.6 million, or $0.06 per share, compared to a GAAP net loss of $11.7 million, or $0.04 per share, in the Q2 of 2012 and GAAP net income of $1.9 million, or $0.01 per diluted share, in the Q3 of fiscal 2011.

The non-GAAP net loss for the Q3 of fiscal 2012 was $6.3 million, compared to a non-GAAP net loss of $8.6 million in the Q2 of fiscal 2012 and non-GAAP net income of $4.1 million in the Q3 of fiscal 2011.

Ray Dolan, president and CEO, said, “This continued momentum will enable us to more rapidly transition our business from legacy Media Gateway (News - Alert) toward a profitable SBC growth company.”


Edited by Rachel Ramsey

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