On Aug. 7, SEC fined Sonus Networks for false revenue projections.
- Sonus Networks and executives agreed to pay over $1.9mn to settle charges.
Alleged Violations
- Former Sonus CFO, Mark Greenquist, was found to be aware of red flags which
undermined the company’s first quarter 2015 announced estimates of revenue. - Warnings included Sonus pulling forward deals initially projected to close 2015.
- Greenquist issued a PR saying he was fine with first quarter estimate of $74mn.
- Six weeks later, Sonus issued guidance of $74mn reveue, with forecasted sales.
- Improperly reclassified, due to pressure from Michael Swade, VP of global sales.
- Seven days pre quarter end, Sonus lowered revenue estimate to $47mn-$50mn.
- Following their announcement, Sonus’s stock price dropped by over 33 percent.
Sanctions
- Ribbon, Greenquist and Swade pay fine of $1.9mn, $30k, and $40k respectively.
