FRAMINGHAM (10/16/2003) - Sonus Networks Inc. this quarter made a profit for the first time in its seven-year history and announced a new customer: AT&T.
The packet-voice equipment company's bottom line made a US$4.4 million swing between the second and third quarters of this year. The leap up from the second quarter's $3.2 million loss put the company $1.2 million in the black for the third quarter.
Over the same time, total revenues jumped from $21.4 million in the second quarter to $28.6 million in the third, a change of $7.2 million.
One investment firm took this as a hopeful sign and upped its revenue estimates from $93 million to $101 million. Goldman Sachs Group Inc. also bumped up its Sonus outlook for next year from $155 million to $175 million.
AT&T was a big reason for the company's good fortune. Sonus announced that the carrier bought enough equipment in the third quarter to account for 10 percent or more of revenue.
Other service providers falling into this category for Sonus are Global Crossing, Qwest and Verizon, who are using the equipment primarily for long distance traffic. Together, they represent about 65 percent of Sonus's third quarter revenue, Goldman Sachs says.
Overall, Sonus has 17 customers, the investment firm says.
Sonus also raised $126 million from issuing new stock in September, and opened an office in India, a hotbed of Internet Protocol-voice network construction.