Sonus Networks, Inc. Q2 2009 Earnings Call Transcript

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2009-07-30 15:23:22.0

Tags: Call Transcript, AT&T Corp., Earnings, Credit Suisse Group AG, Operational Accounting, Finance, Seeking Alpha, Sonus Networks

Question-and-Answer Session

Operator

(Operator Instructions) Your first question is coming from the line of Paul Silverstein - Credit Suisse.

Paul Silverstein - Credit Suisse

Rich, I think you mentioned when you got a win at Cox for deployment, can you give a little bit more insight on that?

Richard N. Nottenburg

Paul, I would like to talk a lot more about that Paul and to be honest, you probably noticed that we have had a limited amount of information we have been able to release there. We are just not in a position we can release more information right now and we would love to and we will do so when we are able to.

Paul Silverstein - Credit Suisse

On your top line customers given that they were 42%, I assume Global Crossing was greater than 10% wasn’t traumatically greater?

Richard J. Gaynor

I would say this. It was somewhere between 10% and 20%.

Paul Silverstein - Credit Suisse

Okay. And AT&T on the deferred revenue, I know you guys walked through that last around. If you could just revisit that Rick in terms of looking for minus 10 years to get the stuff with each quarter because it keeps building out.

Richard J. Gaynor

Correct, correct, yes.

Paul Silverstein - Credit Suisse

In terms of the recognition, as we go forward to the next two years, we should see the recognized portion from each pricing your quarter gets build in and therefore there is going to be natural increase. Is that correct?

Richard J. Gaynor

That is absolutely correct.

Paul Silverstein - Credit Suisse

Okay. Can you talk a little bit beyond the deferred revenue number? Can you talk about the quality of trend, at AT&T what you are seeing there and I recognized it is only so much you can give on any customer?

Richard N. Nottenburg

Let me just give you a little color on that. There is some interest here. I think we would like to say that AT&T is the stronger [31.52] and we have a very good relationship with them and we continue to see a lot more opportunities while providing excellent service and value given the size of our install base. We feel really good about AT&T but we really cannot comment on a lot of more specifics on new projects and what is going on there.

Paul Silverstein - Credit Suisse

And one last question if I may, OpEx Richard has done a very good job, historically I know you are projecting and increasing Q3. What the [growth] here is, are you going start growing OpEx modestly or is Q3 an anomaly and you are going to hold the line and keep reducing as we go forward?

 

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