Revenues for the second quarter of fiscal 2001 were $52.6 million compared with $41.5 million for the first quarter of fiscal 2001, an increase of 27 percent. Adjusted net income for the second quarter of fiscal 2001, which excludes stock-based compensation and amortization of goodwill and purchased intangibles was $1.2 million or $0.01 per share, compared with adjusted net income, which excludes stock-based compensation, amortization of goodwill and purchased intangibles and an in-process research and development charge relating to the acquisition of telecom technologies, inc., completed in January 2001, of $151,000 or $0.00 per share for the first quarter of fiscal 2001.

Net loss for the second quarter, including stock-based compensation and amortization of goodwill and purchased intangibles, was $51.4 million or $0.30 per share, compared with a net loss, including stock-based compensation, amortization of goodwill and purchased intangibles and an in-process research and development charge, of $82.5 million or $0.51 per share for the first quarter of fiscal 2001.

Revenues for the first six months of fiscal year 2001 were $94.1 million compared with $7.6 million for the same six month period in fiscal year 2000. Adjusted net income for the first six months of fiscal year 2001 was $1.3 million or $0.01 per share, compared with an adjusted net loss of $18.0 million or $0.15 per share for the same six month period in fiscal year 2000. Net loss for the first six months of fiscal year 2001, including the non-cash charges, was $133.9 million or $0.80 per share compared to a net loss, including the non-cash charges of, $31.4 million or $0.72 per share for the same six month period in fiscal year 2000.

This was an exceptionally good quarter for Sonus, particularly in light of the currently challenging telecommunications market, commented Hassan Ahmed, president and CEO, Sonus Networks. We’ve seized a significant market opportunity as carriers shift their spending to technologies that provide dramatic improvements in economics and the ability to offer new revenue-generating services. Ahmed continued, Today we announced the addition of a major incumbent carrier, BellSouth, to our customer roster. The selection by BellSouth represents an important milestone for Sonus in our drive to penetrate the incumbents.

During the quarter, we also strengthened our presence internationally, particularly in Asia. We went live with our deployment with Fusion Communications in Japan, furthered our progress internationally with Global Crossing, and signed a distribution agreement with Sumitomo Corporation. Finally, we made good progress in broadening our solutions to extend from the core to the edge of the network, concluded Ahmed.

Coincident with this release, Sonus announced that BellSouth has chosen Sonus to provide its industry-leading packet voice infrastructure solutions to supplement BellSouth’s existing voice network (see related announcement Sonus Networks Provides Internet Call Diversion Solution for BellSouth.) BellSouth will implement a full Sonus packet voice solution as the foundation for offloading Internet traffic from its circuit-switched voice network. By deploying Sonus’ solutions for Internet call diversion (ICD), BellSouth will be able to scale its network resources to efficiently manage Internet and voice traffic.

Earlier in the quarter, Sonus announced that Fusion Communications deployed Sonus’ packet voice solutions in the core of their next-generation voice network, which is already carrying live, revenue-generating traffic. Initially, Fusion has rolled out the Sonus systems in 17 cities across Japan, with plans to rapidly build out a network footprint that will encompass all major cities and population centers. Launched in April, the Fusion network currently supports more than 510,000 subscribers.

Further expanding its reach in Japan, Sonus formed a distribution relationship with Sumitomo Corporation. Under this non-exclusive agreement, Sumitomo will provide the full range of Sonus packet voice products to the Japanese carrier market, including Sonus’ award-winning GSX9000(TM) Open Services Switch, the PSX6000(TM) SoftSwitch, the INtelligentIP(R) Softswitch, the SGX2000(TM) SS7 Signaling Gateway, and the Sonus Insight(TM) Element Management System.

In April 2001, Sonus forged a partnership with Juniper Networks in which the two companies will work together to help service providers build integrated voice and data networks with the highest levels of performance, reliability and quality of service. Through their joint sales and marketing alliance, Juniper Networks and Sonus are working together to deliver carrier-class solutions harnessing the latest innovations in MPLS/Traffic Engineering, service-aware routing and differentiated services.

Sonus also continued to draw leading telecom companies to its Open Services Partner Alliance(TM) (OSPA), increasing the range and scope of the Sonus partner initiative. During the quarter, 44 companies joined the OSPA as partners, and 18 companies successfully completed interoperability testing with Sonus to achieve Powered status in the OSPA. In a widely-attended demonstration at SUPERCOMM 2001 in Atlanta last month, Sonus and 32 of its Powered OSPA partners showcased an extensive range of innovative, next-generation products, services and solutions in a live IP/PSTN network.

In May, Sonus filed an S-3 shelf registration statement under which the Company may raise up to $1 billion in debt, equity or other securities, and the Company completed a $10 million private placement of convertible subordinated debt.

SOURCE: COMPANY PRESS RELEASE