Sonus Networks reported accounting irregularities concerning the timing of revenue recognized from certain customer transactions and other financial statements. The issue may affect the company’s 2003 financial statements and possibly financial statements for prior periods. Sonus said certain employees associated with the transactions have been terminated. It is conducting an independent investigation, employing the services of Hale and Dorr LLP and PricewaterhouseCoopers. The company said it is unable to provide at this time an anticipated date for the completion of its review or the year-end audit, or for the rescheduling of the release of its Q4 and fiscal year 2003 results.
“We are deeply concerned and disappointed to have discovered that certain employees at Sonus Networks were engaged in behavior that violated our code of conduct and may have compromised the integrity of our financial reporting,” said Hassan Ahmed, president and CEO, Sonus Networks. http://www.sonusnet.com
