Tuesday, January 13, 2009

Sonus resolves board issues with shareholder Legatum

By Mass High Tech staff

Communications infrastructure equipment maker Sonus Networks Inc. reports that it has come to an agreement with its largest stockholder, Legatum Capital Limited, which will result in Westford-based Sonus adding add two new independent members to its board of directors

Dubai-based Legatum Capital, which currently owns approximately 65 million shares, or 25 percent of Sonus (Nasdaq: SONS) common stock, will get to name the directors, subject to the terms of the agreement, officials said. As a result, Legatum will not put forth any proposals or take actions in connection with Sonus’ 2009 annual meeting.

The move is that latest in a round of corporate governance changes Sonus has undergone following months of discussions between the Internet protocol communications company and Legatum. In late December, Sonus announced the first moves in those changes, declassifying its board and formally separating the firm’s chairman and CEO positions.

Sonus director Howard Janzen was appointed to the role of non-executive chairman, with Richard Nottenburg staying in the company’s CEO role. Longtime Sonus CEO Hassan Ahmed, who had led the company for 10 years, retired from the CEO position last spring and from the chairman position in early December.

Also in December, Sonus cut 50 jobs, or about five percent of its global workforce.

In the company’s last reported quarter, ending Sept. 30, Sonus reported $61.7 million in revenue, a decrease of more than $26 million over the previous quarter, and a net loss of $19.6 million, a significant decline from the company’s net gain of $126,000 the previous quarter.