Sonus predicts revenue growth

Sonus Networks Inc., which makes Internet telephony equipment and software, said today that it expects to report revenue growth for the first half of the year based on its preliminary results.

Sonus Networks expects revenue to increase between 16 percent and 18 percent for the first half of 2007.

Sonus said its performance in the first half of 2007 reflects an expected shift in some capital spending to the second half of the year.

The company also noted that its has experienced a longer than expected approval cycle for a significant initial order from a new customer, which is now expected in the second half of the year.

"While we achieved solid revenue growth during the 1st half of 2007, we are of course disappointed that we did not reach the even greater revenue growth opportunities we have been targeting due to the shift in capital spending patterns of certain operators," said Chairman and Chief Executive Hassan Ahmed.

Sonus shares plunged $2.03, or 24.5 percent, to $6.25. The stock has traded between $3.96 and $9.03 during the past 52 weeks.

For fiscal year 2007, Sonus expects full-year revenue growth of 14 percent to 17 percent, due to the capital spending shift combined with the scope and complexity of certain large deployments.

For the fourth quarter, Sonus said it continues to target adjusted operating income growth of 17 percent to 20 percent. (AP)