Sonus posts loss; will sell Zynetix
Sonus Networks reported a “challenging” third quarter in which it sustained a large loss in revenue, swung to a loss, and decided to sell its Zynetix subsidiary, purchased only a year ago.
Revenue from continuing operations for the third quarter of fiscal 2008 was $62.2 million, compared to $87.8 million in the second quarter of fiscal 2008 and $75.8 million for the third quarter of fiscal 2007.
The shortfall led to a $19 million loss, a significant improvement from its third quarter last year, when it recorded a $26.6 million loss. On the other hand, the Q3 loss was a reverse on recent success; in the immediately preceding second quarter, the company turned in a profit of $3.5 million.
"We had a challenging quarter, and are disappointed with our results," said Richard Nottenburg, president and CEO of Sonus Networks. "We experienced a downturn during September that impacted our revenue and earnings performance. We have maintained a strong cash position and a stable financial platform which allow us to focus on managing the business through the current economic climate."
Sonus said it is currently in negotiations to sell Zynetix; it did not identify the potential buyer. Sonus said it will continue to own and sell the Sonus mobilEdge wireless solution. Sonus is treating Zynetix as a discontinued operation, so its results were not included in Sonus’ Q3 numbers.
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