Sonus shares fall after it reported preliminary sales
Sonus Networks Inc. shares fell today after the Westford company predicted its fourth-quarter revenue will slightly miss analysts' estimates and gave first-quarter and 2008 guidance that disappointed analysts.
The networking hardware and software maker's shares fell 62 cents, or 16.1 percent, to $3.24, in morning trading on the Nasdaq Stock Market. In the past year, the stock has traded between $3 and $9.03.
Sonus said late yesterday that according to preliminary results it expects fourth-quarter revenue of $97.1 million, compared with $79 million in the year-ago quarter.
Analysts polled by Thomson Financial expect revenue of $97.3 million.
For the full year, Sonus anticipates $320.3 million in revenue, compared with $279.5 million in the prior year.
The company said it is waiting to release full financial results until an audit of its financial statements has been finished, and it plans to file a late filing notification for its annual report with the Securities and Exchange Commission.
Sonus plans to report its full-year 2007 results in mid-March.
Also Thursday, the company predicted in a conference call that its first-quarter revenue will total about $72 million to $76 million. Sonus also predicted 2008 revenue will rise 20 percent over 2007 revenue -- which assumes an expectation for about $384.4 million in full-year revenue.
Analysts expect first-quarter revenue of $90.4 million and 2008 revenue of $417 million.
Cantor Fitzgerald analyst Edward Jackson reiterated his "Buy" rating for the stock and lowered his price target to $4.75 from $5.50 on Friday, based on the company's preliminary fourth-quarter results and "disappointing" first-quarter and full-year 2008 guidance.
"While yesterday's call was frustrating, it does not negate the strength of Sonus' financial position or the competitive position the company maintains in its addressable markets," he said in a note to investors.
The analyst also lowered his 2008 estimates for Sonus.
Also Friday, Jefferies & Co. analyst George C. Notter reiterated his "Hold" rating for the stock in a note to investors and lowered his price target to $3.50 from $6.25.
"This quarter's disappointing guidance was consistent with our concerns about the company's 'real' quarterly run-rate. In hindsight, one has to wonder if Sonus is really a $75 million/quarter business with fourth-quarter results that were anomalous," he said.
Notter also lowered his 2008 estimates for the company. (AP)
Comment
Permalink
E-mail
