Advest Raises Sonus Networks to 'Buy'
Sonus Networks (SONS ) posted 1 cent per share loss in the second quarter, vs. 9-cents loss a year ago, on flat revenue. Advest upgraded the stock to buy from neutral.
Analyst Herbert Tinger says second-quarter results beat his and the consensus estimates; this is the third straight quarter of strong sequential revenue growth and narrower losses He notes the company also said Verizon Communications (VZ ) is already carrying long distance traffic using its infrastructure and is in process of expanding its network footprint. He says Verizon was 10% of revenue customer in the second quarter; and given ongoing network expansion, it should be a significant customer in future quarters as well.
Tinger raised his 2003 revenue estimate by $16.6 million to $89.4 million, and by $90 million in 2004 to $110 million. He narrowed his 2003 9-cent loss estimate to a 5-cent loss, and 7-cent 2004 loss to 2-cents loss.