Slump socks Sonus

Sonus Networks, the packet telephony company that seemed to be going great guns of late, is the latest to be stung by The Industry Downturn.

The company revised guidance for its third quarter, lowering revenue and earnings forecasts, and announced it will take a one-time charge of US$466 million due to softening demand for its softswitches and media gateways. Demand has slowed from existing customers - which include BellSouth Corp., Qwest Communications International Inc., Time Warner Telecom Inc. and Level 3 Communications Inc. - as well as from new customers.

Sonus projects a loss of $0.05 to $0.07 per share on revenue of $40 million. Analysts had expected a profit of $0.01 per share on revenue of $55 million for the third quarter (Sonus to cut staff, close buildings).

Telseon became the latest service provider to endorse free-space optics, the laser wireless technology aimed at linking buildings in a campus. Telseon will use Terabeam's gear to extend the coverage of its fiber-based metro Ethernet networks. Qwest recently said it would offer LightPointe's FSO (free-space optics) equipment to bring broadband to customers it cannot reach with fiber.

Speaking of Telseon and optical, the service provider said it is adding OC-12 services to its roster of OC-48 and OC-192 flexible wavelength services in an effort to broaden its market reach. The OC-12 wavelengths, to be provisioned using ONI Systems' gear, are targeted at companies looking for smaller amounts of bandwidth than the OC-48 and OC-192 wavelengths commonly offered in optical networks. Earlier this year, Telseon and ONI teamed on a deal to enable Dynegy to provide city-to-city connectivity between Telseon's metro optical networks using ONI gear.

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More about BellSouthCommunications InternationalDynegyLevel 3 CommunicationsOni SystemsQwestQwest CommunicationsSonusSonus NetworksTelseonTime Warner

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