The surprising revenues seem to still have their impact on Sonus Networks, Inc. (NASDAQ:SONS) stock. The rally continued yesterday and even led to a new yearly high on exploding trading volume.The price of Sonus Networks’ stock jumped another 5.90% yesterday and closed the market at $3.23. Nearly 9.2 million shares were traded and the demand for the shares reached its peak as the price hit another new 52-week high at $3.36 during the trading session. The market did not seem consolidated however, noticed on the broad range within which the price moved throughout the day.
It seems that the second quarter results, filed last Tuesday, are still capturing investor attention, whereby they were actually not glorious enough to justify the large increase in the stock price. One positive thing was probably the fact that Sonus revenues surpassed some analysts’ expectations. With forecasted revenues of around $59 million, the actual number reported for this year’s second quarter was slightly above $61 million.
But apart from the surpassed expectations, it seems that Sonus has not improved substantially its performance. The revenues keep declining over the last three quarters, as well as on an annual basis over the last three years. Although the last quarter was profitable, on an yearly basis the company is losing money and the total gross margin decreased in the three months ended this June to 62.9% from 65.4% last year. Investing activity continues to be mostly in marketable securities.
A positive thing to be pointed out is that the restructuring process of the company was paused or completely ended during the last quarter. No more restructuring expenses have been reported and the further workforce has been cut off. This could influence positively the future profitability of the company.
Still, the management does not sound very optimistic about this year’s total revenues and expects flat to low growth as compared to the fiscal 2009 revenues.
