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Earnings reports

Sonus Drops a Bomb

Sonus Networks Inc. (Nasdaq: SONS) says that faulty accounting and an independent audit are among the causes delaying its earnings report for the period ended December 31, 2003 (see Sonus Explains Delay in Q4 Results). The softswitch maker saw its shares fall $1.37 (20.45%) to $5.32 in after-hours trading Wednesday after explaining its delay.

The company has already fired a non-executive employee and hired Hale and Dorr LLP and PricewaterhouseCoopers to help audit its finances and investigate problems. Calls to Sonus weren't immediately returned on Wednesday evening.

The company says it has told the Securities and Exchange Commission (SEC) of the investigation and will keep the agency posted.

“We are deeply concerned and disappointed to have discovered that certain employees at Sonus Networks were engaged in behavior that violated our code of conduct and may have compromised the integrity of our financial reporting,” said Hassan Ahmed, the company's president and CEO in a prepared statement.

— Phil Harvey, News Editor, Light Reading

Ishmeal 12/5/2012 | 2:27:59 AM
re: Sonus Drops a Bomb It said it had told the U.S. Securities and Exchange Commission (News - Websites) of the probe and terminated "certain non-executive employees."

Witness Sonus' apt use of the "Ken Lay defense" in the face of this scandal. But hey look at the big picture, you can't make your first quarter of profitability without falsifying your finances and obliterating the savings of small shareholders.

I think we're going to see the blame for this one get passed around like a joint at a Grateful Dead show. By the way, Jerry's dead so don't try to blame him Hassan!


realdeal 12/5/2012 | 2:27:58 AM
re: Sonus Drops a Bomb Booking revenue before its time is so 90's. What non-executive employee could have possibly had access to so much information? Maybe one of the leased janitorial staff from Walmart?

This baby is going to get a DNA test by the time it is all said and done.
Route_495 12/5/2012 | 2:27:58 AM
re: Sonus Drops a Bomb
...and going down the crapper is so 00's.

Buh.......bye. Can you hear me now?
ATMRules 12/5/2012 | 2:27:57 AM
re: Sonus Drops a Bomb I remember when Hassan left Lucent because he had to take care of family issues back in Canada, three weeks later he was named CEO of Son-ron..something smells fishy here... a non executive employee???? fired??, Quartely results delayed?...this is sounding more and more like a run away train...maybe Lucent will buy them and all their troubles will be gone...stay tuned...this is going to get juicy...

ATMRules.....
Route_495 12/5/2012 | 2:27:55 AM
re: Sonus Drops a Bomb
Yes, like some kind of dysfunctional family gathering, all the Cascade Salmon will return to spawn in Westford.

Hopefully there'll be some grizzly around to put them out of their misery.
materialgirl 12/5/2012 | 2:27:43 AM
re: Sonus Drops a Bomb Questionable recording of revenues is going around. LU had that $150M problem in India about a year ago. In Q3, NT admitted to about $935M in bad accounting in the September quarter, and had to delay reporting. In fact, their recently reported Q4 results that got the stock moving are NOT audited, which is truly questionable behavior. SONS could have posted a bunch of unaudited junk too, but did not.

Then there is UTSI. They have about six months of revenues sitting there in inventory waiting for recognition. It seems like as the networking paradigm changes, and/or as revenues begin to be realized from around the world, actually closing business on hardware is getting tricky.
right_leading 12/5/2012 | 2:27:41 AM
re: Sonus Drops a Bomb
Penicillin will clear that up.
DocGonzo 12/5/2012 | 2:27:38 AM
re: Sonus Drops a Bomb "The only way to fix this problem is by rating the sonus exec's on RoloStar.COM. You can go to "Provide Rated Referral" tab and rate the exec's. Your identity is kept confidential. This is the only way to weed-out bad exec's from telecom industry."

mamamia - enough with the nonsense. No one here in their right mind believes the website you so shamelessly push is going to have any effect. Find someplace else to peddle this crapola.

LR, delete away.

Doc
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