Sonus Networks Inc. (Nasdaq: SONS) closed the book on its internal review of stock option grants by filing updated financial reports with the Securities and Exchange Commission (SEC) . (See Sonus Catches Up.)

The updated results for fiscal year 2006 and the first quarter 2007 included a $54 million non-cash charge related to the company's stock option accounting due to dating errors it found in grants from May 2000 to 2005. The company also reported a $1.4 million decrease in shareholder equity as of December 31, 2005. As a result, restated earnings were reduced by approximately $55 million for the fiscal 2000 through 2005 period.

For the first quarter 2007, Sonus reported a net loss of $3.98 million, or 2 cents a share, on revenues of $71.1 million. That compared with a net gain of $5.82 million, or 2 cents a share, on revenues of $60 million during the year-ago period.

For the full year 2006, the company posted net income of $102.8 million, or 40 cents per share, on revenues of $279.5 million. That compared with earnings of $4.8 million, or 2 cents a share, on sales of $195.4 million in 2005.

Sonus opened its options probe nearly one full year ago, after regulatory and media attention led to a series of investigations into stock options backdating throughout the industry. (See Sonus Opens Options Probe and Backdating Blues.)

The company filed updated financials in an effort to regain compliance with the Nasdaq stock exchange, which has been sending the company delisting notices and issuing extensions just as regularly. The company now believes it is in full compliance with Nasdaq listing requirements and will issue its second-quarter results next week. (See Sonus Updates on H1, Nasdaq, Sonus Remains on Nasdaq, Sonus Gets New Warning, Sonus Gets Extension, Nasdaq Warns Sonus, and Nasdaq Warns Sonus.)

Sonus isn't the only company to make progress related to a stock option probe recently. Earlier this week, Sycamore Networks Inc. (Nasdaq: SCMR) announced it had regained Nasdaq compliance after its own stock options review. (See Sycamore Stays Listed, Sycamore Still Listed, and Sycamore Completes Audit.)

— Ryan Lawler, Reporter, Light Reading