Why Sonus Networks Plunged

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What: Shares of Sonus Networks (NAS: SONS) plunged today by as much as 11% before beginning to recover after the company reported earnings.

So what: Revenue in the first quarter came out on top of forecasts at $64.3 million, which generated a non-GAAP loss of $0.02, slightly better than the $0.03 loss that the market was expecting. CEO Ray Dolan said the company has strong momentum in the growing session border controller market.


Now what: The second-quarter outlook was a little mixed, though, with revenue expected between $57 million and $59 million, which should generate a loss of $0.03 per share. Full-year guidance is unchanged, and sales should be between $270 million and $280 million. The company expects to lose between $0.01 and $0.02 per share for fiscal 2012.

Interested in more info on Sonus Networks? Add it to yourWatchlist.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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