Never a dull moment with Sonus Networks Inc. (Nasdaq: SONSE).
Yesterday morning it said it still hadn't filed its financial restatements, and its share price fell (see Sonus: Not out of the Woods Yet). Then yesterday evening it said it had filed its documents with the Securities and Exchange Commission (SEC), and its stock rocketed (see Sonus Files Restatements, Reports Q1).
Having closed the day at $4.34, down more than 4 percent, the softswitch vendor announced it had restated its financial results for "fiscal years 2001 and 2002 and the first three quarters of fiscal 2003," and reported financial results "for the fourth quarter and fiscal year ended December 31, 2003, and for its first quarter ended March 31, 2004." In after-hours trading the share price leapt more than 26 percent to $5.48.
The company also announced that CFO and VP of business operations, Stephen Nill, has "resigned at the request of the company," which is a most polite way of saying he's out on his ears (there's one for you anagram fans).
Now the vendor has to put on its best pleading voice with Nasdaq, which yesterday notified Sonus that its stock is due to be delisted from the exchange from next Monday, August 2.
Sonus says yesterday's filings bring it back into compliance with the SEC requirements, and that it has asked to remain listed on the Nasdaq National Market "because [it] is now in compliance with Nasdaq's filing requirement."
To remain compliant, Sonus must file its second-quarter results by August 9.
The restatement situation, which first came to light in February (see Sonus Drops a Bomb), came about due to the mistiming of revenue recognition, according to Sonus (see Sonus Soothes Numbers Nerves and Sonus Completes Financial Review).
And if the first quarter's results are anything to go by, its business has been on a sharp growth curve while it was revisiting its books. Its first-quarter revenues were $36.5 million, nearly four times higher than a year earlier, and it achieved a net income of $3 million compared with a net loss of $9.7 million.
The company is hosting a conference call at 8:15 a.m. Eastern today.
— Ray Le Maistre, International News Editor, Light Reading
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