Revenue during the quarter dropped 4.20 percent to $65.01 million from $67.86 million in the previous year period. Gross margin for the quarter contracted 32 basis points over the previous year period to 67.04 percent. Operating margin for the quarter stood at negative 6.64 percent as compared to a negative 2.01 percent for the previous year period.

Operating loss for the quarter was $4.32 million, compared with an operating loss of $1.36 million in the previous year period.

However, the adjusted operating income for the quarter stood at $6.44 million compared to $6.13 million in the prior year period. At the same time, adjusted operating margin improved 87 basis points in the quarter to 9.90 percent from 9.03 percent in the last year period.

"I am pleased with our strong financial performance in the third quarter of 2016 as our sustained investment in the transition to software-based solutions continues to pay off. As our customers shift to a Cloud-based approach, Sonus is pleased to provide the critical network architecture and support to make this transition simple and affordable," said Ray Dolan, Sonus president and chief executive officer.

For the fourth-quarter, Sonus Networks expects revenue to be in the range of $65 million to $67 million. Sonus Networks expects revenue to be in the range of $250 million to $252 million for financial year 2016. The company projects diluted loss per share to be in the range of $0.05 to $0.02 for the fourth-quarter. For financial year 2016, the company projects diluted loss per share to be in the range of $0.27 to $0.24. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.09 to $0.12 for the fourth-quarter. For financial year 2016, the company projects diluted earnings per share to be in the range of $0.33 to $0.36 on adjusted basis.

The company has spent $20.65 million cash to meet investing activities during the nine month period as against cash inflow of $6.44 million in the last year period

The company has spent $7.21 million cash to carry out financing activities during the nine month period as against cash outgo of $4.32 million in the last year period.

Cash and cash equivalents stood at $32.57 million as on Sep. 30, 2016, down 27.26 percent or $12.21 million from $44.77 million on Sep. 25, 2015.

Working capital declines
Sonus Networks has witnessed a decline in the working capital over the last year. It stood at $94.37 million as at Sep. 30, 2016, down 24.11 percent or $29.98 million from $124.34 million on Sep. 25, 2015. Current ratio was at 2.42 as on Sep. 30, 2016, down from 2.61 on Sep. 25, 2015.

Cash conversion cycle (CCC) has decreased to 90 days for the quarter from 148 days for the last year period. Days sales outstanding went down to 66 days for the quarter compared with 67 days for the same period last year.

Days inventory outstanding has decreased to 45 days for the quarter compared with 102 days for the previous year period. At the same time, days payable outstanding was almost stable at 20 days for the quarter, when compared with the previous year period.