Accounting & Tax

Revenue Timing Prompts Sonus Restatement

The principal adjustments made by Sonus Networks relate to revenue that was deferred, then recognized in subsequent periods.
Stephen TaubJuly 21, 2004

Sonus Networks Inc., which makes equipment for Internet phone services, announced that it will restate its results for fiscal 2001 and 2002 and the first three quarters of 2003, primarily to adjust the timing of revenue recognition and other financial-statement accounts.

The principal adjustments relate to revenue that was deferred, then recognized in subsequent periods, explained the company. Other material restatements include adjustments to purchase accounting, impairments, accruals, and deferred compensation.

The company also announced that it expects to file an amended annual report for 2003 and a quarterly report for the first quarter of fiscal 2004 within about a week.

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Sonus is currently being investigated by the Securities and Exchange Commission over its accounting practices.

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