Sonus Networks Announces Privately-Negotiated Share Repurchase

WESTFORD, Mass.--(BUSINESS WIRE)--

Sonus Networks, Inc. SONS, a global leader in SIP communications, today announced that as part of the Company's previously announced stock buyback program, it has agreed to repurchase 2 million shares of the Company's common stock in a privately negotiated transaction reached with Empire Capital Management, L.L.C. ("Empire") on Friday, May 23, 2014. The shares will be repurchased at $3.63 per share, the market closing price on May 23, 2014, for a total purchase price of approximately $7.3 million. The Company will pay for the shares repurchased using cash on hand.

Prior to the transaction, as reflected in filings made by Empire with the Securities and Exchange Commission, Empire owned approximately 26.5 million shares, or approximately 10.7%, of the Company's outstanding common stock. Following the transaction, Empire will own approximately 24.5 million shares, or just below 10% of the Company's outstanding common stock.

President and Chief Executive Officer of Sonus Networks, Ray Dolan, commented, “Since announcing our stock buyback program last summer, we have substantially reduced the concentration of our two largest shareholders in an orderly manner. Following the repurchase with Empire, no single shareholder owns more than 10 percent of our total shares outstanding. Our strong financial performance, as evidenced by our improved profitability and growth in cash from operations, underscores our confidence to execute these share repurchases and is an important aspect of our strategy to maximize shareholder value.”

Prior to the transaction with Empire, there were approximately 247.7 million shares of the Company's common stock outstanding (245.7 million following the transaction with Empire). As of March 28, 2014, the Company had cash, cash equivalents and investments of $159.6 million. Following the transaction with Empire, approximately $32.5 million remains under the Company's current stock buyback program as previously announced on July 29, 2013.

Tags

Sonus Networks, Sonus, SONS, share repurchase, stock, buyback, IP-based network solutions, SBC, SBC SWe, software SBC, SBC 1000, SBC 2000, SBC 5100, SBC 5200, SBC 7000, SBC 9000, session border controller, VX series, session management, SIP trunking, Cloud VoIP communications, unified communications, UC, VoIP, IP, TDM.

About Sonus

Sonus helps the world's leading communications service providers and enterprises embrace the next generation of SIP-based solutions including VoIP, video and Unified Communications through secure, reliable and scalable IP networks. With customers around the globe and 15 years of experience transforming networks to IP, Sonus has enabled service providers and enterprises to capture and retain users and generate significant ROI. Sonus products include session border controllers, policy/routing servers, subscriber feature servers and media and signaling gateways. Sonus products are supported by a global services team with experience in design, deployment and maintenance of some of the world's largest and most complex IP networks. For more information, visit www.sonus.net or call 1-855-GO-SONUS.

Important Information Regarding Forward-Looking Statements

The information in this release may contain certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding future events that involve risks and uncertainties. Although Sonus believes that its expectations are based on reasonable assumptions, readers are cautioned that these forward-looking statements are only predictions and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. All statements other than statements of historical facts contained in this report are forward-looking statements. Our actual results may differ materially from those contemplated by the forward-looking statements. For further information regarding risks and uncertainties associated with Sonus' business, please refer to the “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Sonus' filings with the Securities and Exchange Commission. Any forward-looking statements represent Sonus' views only as of the date on which such statement is made, and should not be relied upon as representing Sonus' views as of any subsequent date. While Sonus may elect to update forward-looking statements at some point, Sonus specifically disclaims any obligation to do so, except as required by law.