Ribbon Communications Inc - Ordinary Shares 8-K Other Events

Exhibit 99.1

SONUS NETWORKS, INC.

Unaudited Consolidated Balance Sheet information as of December 31, 2008 and 2007 and

Unaudited Consolidated Statements of Operations for the years ended December 31, 2008 and 2007

The effects of this immaterial restatement on the unaudited Consolidated Balance Sheets as of December 31, 2008 and 2007 are as follows (in thousands):

	December 31, 2008									December 31, 2007
	As previously									As previously
	reported			Adjustment			As restated			reported			Adjustment			As restated
Deferred income taxes (noncurrent assets)	$	1,611		$	—		$	1,611		$	49,296		$	118		$	49,414
Total assets	$	535,585		$	—		$	535,585		$	694,050		$	118		$	694,168
Stockholders’ equity:
Preferred stock	$	—		$	—		$	—		$	—		$	—		$	—
Common stock	275			—			275			273			—			273
Additional paid-in capital	1,269,790			3,162			1,272,952			1,244,232			694			1,244,926
Accumulated deficit	(870,716		)	(3,162		)	(873,878		)	(751,920		)	(576		)	(752,496		)
Accumulated other comprehensive income	7,353			—			7,353			1,268			—			1,268
Treasury stock	(267		)	—			(267		)	(267		)	—			(267		)
Total stockholders’ equity	$	406,435		$	—		$	406,435		$	493,586		$	118		$	493,704

The effects of this immaterial restatement on the unaudited Statements of Operations for the years ended December 31, 2008 and 2007 are as follows (in thousands, except per share data):

	Year ended									Year ended
	December 31, 2008									December 31, 2007
	As previously									As previously
	reported			Adjustment			As restated			reported			Adjustment			As restated
Revenue:
Product	$	203,387		$	—		$	203,387		$	225,644		$	—		$	225,644
Service	109,758			—			109,758			93,771			—			93,771
Total revenue	313,145			—			313,145			319,415			—			319,415
Cost of revenue:
Product	74,168			106			74,274			90,947			29			90,976
Service	55,704			316			56,020			37,424			89			37,513
Total cost of revenue	129,872			422			130,294			128,371			118			128,489
Gross profit	183,273			(422		)	182,851			191,044			(118		)	190,926
Operating expenses:
Research and development	72,223			875			73,098			78,652			246			78,898
Sales and marketing	73,499			865			74,364			81,358			244			81,602
General and administrative	61,739			306			62,045			56,566			86			56,652
Settlement of litigation, net of recoveries	19,100			—			19,100			24,672			—			24,672
Impairment of intangible assets and goodwill	2,727			—			2,727			—			—			—
Restructuring	702			—			702			—			—			—
Total operating expenses	229,990			2,046			232,036			241,248			576			241,824
Loss from operations	(46,717		)	(2,468		)	(49,185		)	(50,204		)	(694		)	(50,898		)
Interest expense	(291		)	—			(291		)	(164		)	—			(164		)
Interest income	12,643			—			12,643			18,393			—			18,393
Other income, net	358			—			358			1,068			—			1,068
Loss from continuing operations before income taxes	(34,007		)	(2,468		)	(36,475		)	(30,907		)	(694		)	(31,601		)
Income tax (provision) benefit	(79,557		)	(118		)	(79,675		)	8,356			118			8,474
Loss from continuing operations	(113,564		)	(2,586		)	(116,150		)	(22,551		)	(576		)	(23,127		)
Loss from discontinued operations, net of tax	(4,491		)	—			(4,491		)	(1,086		)	—			(1,086		)
Loss from disposal of discontinued operations, net of tax	(741		)	—			(741		)	—			—			—
Net loss	$	(118,796	)	$	(2,586	)	$	(121,382	)	$	(23,637	)	$	(576	)	$	(24,213	)
Loss per share:
Basic:
Continuing operations	$	(0.42	)	$	(0.01	)	$	(0.43	)	$	(0.09	)	$	—		$	(0.09	)
Discontinued operations	(0.02		)	—			(0.02		)	—			—			—
	$	(0.44	)	$	(0.01	)	$	(0.45	)	$	(0.09	)	$	—		$	(0.09	)
Diluted:
Continuing operations	$	(0.42	)	$	(0.01	)	$	(0.43	)	$	(0.09	)	$	—		$	(0.09	)
Discontinued operations	(0.02		)	—			(0.02		)	—			—			—
	$	(0.44	)	$	(0.01	)	$	(0.45	)	$	(0.09	)	$	—		$	(0.09	)

This error resulted in changes to the Company’s net income (loss), stock-based compensation and deferred income taxes within cash flows from operating activities; however, this error did not result in any changes to net cash flows from operating, investing or financing activities.