Sonus Networks (SONS) Tops Q2 EPS by 5c; Announces Restructuring Program

Sonus Networks (NASDAQ: SONS) reported Q2 EPS of $0.08, $0.05 better than the analyst estimate of $0.03. Revenue for the quarter came in at $60.9 million versus the consensus estimate of $59.7 million.

The Company is announcing a restructuring program to further accelerate its investment in new technologies as the communications industry migrates to a Cloud-based architecture. The Company expects to record between $3 million and $4 million of restructuring expense over the next twelve months in connection with this action, resulting in expected annual savings of approximately $6 million to $8 million. The Company intends to utilize the entire savings to shift headcount towards new strategic initiatives (e.g., new products, expanded go-to-market footprint in selected geographies and discrete vertical markets). The Company plans to provide additional information regarding this program when it reports its third quarter of 2016 results.

GUIDANCE:

Sonus Networks sees Q3 2016 EPS of $0.08-$0.09, versus the consensus of $0.09. Sonus Networks sees Q3 2016 revenue of $63-65 million, versus the consensus of $67.0 million.

Sonus Networks sees FY2016 EPS of $0.35-$0.39, versus the consensus of $0.31. Sonus Networks sees FY2016 revenue of $257-263 million, versus the consensus of $261.4 million.

For earnings history and earnings-related data on Sonus Networks (SONS) click here.

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