The Securities and Exchange Commission Aug. 7 charged the former Sonus Networks, which following a merger conducts business as Ribbon Communications Inc., and two executives with providing misleading quarterly revenue estimates, the regulator said in a statement.
According to SEC’s order, Sonus’s former CEO Mark Greenquist, was aware of “red flags” which undermined the company’s first quarter 2015 revenue estimates, but said in a press release he was comfortable with analyst estimates.
Six weeks later, the company issued guidance reflecting certain forecasted sales that had been improperly reclassified, due to pressure from Sonus executive Michael Swade.
The company later lowered its revenue estimate for the quarter and shares dropped 33 percent following the announcement.
Ribbon, Greenquist and Swade consented to the SEC order without admitting or denying the findings. They agreed to pay penalties of $1.9 million, $30,000, and $40,000 respectively.
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