Sonus Networks' Stock Halted After Company Slashes Outlook For Current Quarter

Sonus Networks' stock remain halted for trading, as news that it slashed its first-quarter revenue outlook and that it now expects to report an adjusted loss is disseminated. The secure communications services company said it now expects revenue of $47 million to $50 million and an adjusted per-share loss of 29 cents to 34 cents, compared with its previous estimates of $74 million and a profit of 3 cents a share, respectively. The company said it has initiated a company-wide review of its costs, as it no longer expects to receive certain orders that were expected to be received at the back end of the first quarter. Sonus said it has at least $100 million in cash and marketable securities, and no debt. "As a result of the review announced today, we expect to achieve a cost structure that will ensure we are well-equipped to return to positive cash flow by the end of this fiscal year despite the volatility we are facing," said Chief Executive Ray Dolan. The stock, which is expected to resume trading at 8 a.m. Eastern, has tumbled 34% year to date, while the S&P 500 has gained 2.2%.