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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 29, 2012	Jul. 18, 2012
Document and Entity Information
Entity Registrant Name	SONUS NETWORKS INC
Entity Central Index Key	0001105472
Document Type	10-Q
Document Period End Date	Jun. 29, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		279,985,455
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 29, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 106,112	$ 105,451
Marketable securities	234,740	224,090
Accounts receivable, net of allowance for doubtful accounts of $0 at June 29, 2012 and December 31, 2011	41,300	53,126
Inventory	18,262	15,434
Deferred income taxes	475	486
Other current assets	18,281	12,246
Total current assets	419,170	410,833
Property and equipment, net	21,939	22,084
Intangible assets, net	1,000	1,200
Goodwill	5,062	5,062
Investments	22,890	55,427
Deferred income taxes	1,099	1,137
Other assets	14,267	8,972
Total assets	485,427	504,715
Current liabilities:
Accounts payable	12,066	12,754
Accrued expenses	20,013	21,620
Current portion of deferred revenue	36,479	38,565
Current portion of long-term liabilities	1,099	1,275
Total current liabilities	69,657	74,214
Deferred revenue	10,673	11,601
Long-term liabilities	3,229	3,599
Total liabilities	83,559	89,414
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized, none issued and outstanding
Common stock, $0.001 par value; 600,000,000 shares authorized; 279,982,468 shares issued and outstanding at June 29, 2012 and 279,318,396 shares issued and outstanding at December 31, 2011	280	279
Additional paid-in capital	1,314,946	1,309,919
Accumulated deficit	(920,367)	(902,204)
Accumulated other comprehensive income	7,009	7,307
Total stockholders' equity	401,868	415,301
Total liabilities and stockholders' equity	$ 485,427	$ 504,715

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 29, 2012	Dec. 31, 2011
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 0	$ 0
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	600,000,000	600,000,000
Common stock, shares issued	279,982,468	279,318,396
Common stock, shares outstanding	279,982,468	279,318,396

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2012	Jun. 30, 2011	Jun. 29, 2012	Jun. 30, 2011
Revenue:
Product	$ 32,586	$ 29,446	$ 73,997	$ 65,399
Service	25,024	22,326	47,952	53,672
Total revenue	57,610	51,772	121,949	119,071
Cost of revenue:
Product	11,027	9,618	20,220	32,779
Service	13,788	12,218	27,180	29,731
Total cost of revenue	24,815	21,836	47,400	62,510
Gross profit	32,795	29,936	74,549	56,561
Operating expenses:
Research and development	17,095	15,187	35,482	30,795
Sales and marketing	18,141	13,298	38,726	27,595
General and administrative	9,351	8,197	18,330	16,393
Total operating expenses	44,587	36,682	92,538	74,783
Loss from operations	(11,792)	(6,746)	(17,989)	(18,222)
Interest income, net	222	332	437	767
Loss before income taxes	(11,570)	(6,414)	(17,552)	(17,455)
Income tax (provision) benefit	(155)	480	(611)	(887)
Net loss	$ (11,725)	$ (5,934)	$ (18,163)	$ (18,342)
Loss per share:
Basic (in dollars per share)	$ (0.04)	$ (0.02)	$ (0.06)	$ (0.07)
Diluted (in dollars per share)	$ (0.04)	$ (0.02)	$ (0.06)	$ (0.07)
Shares used to compute loss per share:
Basic (in shares)	279,926	278,400	279,708	278,080
Diluted (in shares)	279,926	278,400	279,708	278,080

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2012	Jun. 30, 2011	Jun. 29, 2012	Jun. 30, 2011
Net loss	$ (11,725)	$ (5,934)	$ (18,163)	$ (18,342)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	306	162	(195)	52
Unrealized (loss) gain on available-for-sale marketable securities, net of tax	(58)	67	(103)	159
Total Other comprehensive income (loss)	248	229	(298)	211
Comprehensive loss	$ (11,477)	$ (5,705)	$ (18,461)	$ (18,131)

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

Net of tax amount of the appreciation (loss) in value of unsold available-for-sale securities attributable to the parent entity. Excludes amounts related to other than temporary impairment (OTTI) losses.

+ References

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+ Details

- Definition

Amount after tax and reclassification adjustments, resulting from the process of expressing in the reporting currency of the reporting entity those amounts that are denominated or measured in a different currency, and from transactions whose terms are denominated in a currency other than the entity's functional currency, which is attributable to the parent entity.

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-Publisher AICPA
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

- Definition

Net of tax amount of other comprehensive income (loss) attributable to the parent entity.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net loss	$ (18,163)	$ (18,342)
Adjustments to reconcile net loss to cash flows used in operating activities:
Depreciation and amortization of property and equipment	5,778	5,644
Amortization of intangible assets	200	200
Stock-based compensation	4,140	4,241
Loss on disposal of property and equipment		6
Changes in operating assets and liabilities:
Accounts receivable	11,739	17,243
Inventory	(3,390)	12,799
Other operating assets	(8,222)	6,565
Accounts payable	(2,011)	(1,926)
Accrued expenses and other long-term liabilities	(1,967)	(12,375)
Deferred revenue	(3,010)	(25,336)
Net cash used in operating activities	(14,906)	(11,281)
Cash flows from investing activities:
Purchases of property and equipment	(4,380)	(7,319)
Purchases of marketable securities	(128,931)	(101,584)
Sale/maturities of marketable securities	148,045	130,194
Net cash provided by investing activities	14,734	21,291
Cash flows from financing activities:
Proceeds from sale of common stock in connection with employee stock purchase plan	993	754
Proceeds from exercise of stock options	68	777
Payment of tax withholding obligations related to net share settlements of restricted stock awards	(134)	(902)
Principal payments of capital lease obligations	(51)	(48)
Net cash provided by financing activities	876	581
Effect of exchange rate changes on cash and cash equivalents	(43)	309
Net increase in cash and cash equivalents	661	10,900
Cash and cash equivalents, beginning of year	105,451	62,501
Cash and cash equivalents, end of period	106,112	73,401
Supplemental disclosure of cash flow information:
Interest paid	11	5
Income taxes paid	1,517	511
Income tax refunds received	42	562
Supplemental disclosure of non-cash investing activities:
Capital expenditures incurred, but not yet paid	1,813	$ 1,418
Property and equipment acquired under operating lease	$ 40

BASIS OF PRESENTATION

6 Months Ended

Jun. 29, 2012

BASIS OF PRESENTATION

BASIS OF PRESENTATION

(1) BASIS OF PRESENTATION

Business

Sonus Networks, Inc. ("Sonus" or the "Company") was incorporated in 1997 and is a leading provider of next-generation session initiation protocol ("SIP")-based solutions, including Voice over Internet Protocol ("VoIP"), video and Unified Communications through secure, reliable and scalable Internet Protocol ("IP") networks. The Company's infrastructure solutions allow efficient and reliable delivery of voice and multimedia sessions over IP networks while allowing customers to manage the flows of such sessions in their networks using business policies.

The Company's target customers comprise both service providers and enterprises. Customers and prospective customers in the service provider space are traditional and emerging communications providers, including long distance carriers, local exchange carriers, Internet service providers, wireless operators, cable operators, international telephone companies and carriers that provide services to other carriers. Enterprise customers and target enterprise customers include financial institutions, retailers, state and local governments, and other multinational corporations. The Company collaborates with its customers to identify and develop new, advanced services and applications that can help to reduce costs, improve productivity and generate new revenue.

Basis of Presentation

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC").

Effective in fiscal 2012, the Company began to report its first, second and third quarters on a 4-4-5 basis, with the quarter ending on the Friday closest to the last day of each third month. In fiscal 2012, the Company's first quarter ended on March 30, 2012, the second quarter ended on June 29, 2012 and the third quarter will end on September 28, 2012. The Company's year-end will continue to be December 31.

Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2011 ("Annual Report") filed on February 24, 2012 with the SEC.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Sonus and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates and Judgments

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and judgments relied upon in preparing these financial statements include revenue recognition for multiple element arrangements, inventory valuations, assumptions used to determine the fair value of stock-based compensation, legal contingencies and recoverability of Sonus' net deferred tax assets and the related valuation allowances. Sonus regularly assesses these estimates and records changes in estimates in the period in which they become known. Sonus bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Fair Value of Financial Instruments

The carrying amounts of the Company's financial instruments, which include cash equivalents, marketable securities, investments, accounts receivable, accounts payable and long-term liabilities, approximate their fair values.

Operating Segments

The Company operates in a single segment. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. To date, the chief operating decision maker has made such decisions and assessed performance at the company level, as one segment. The Company's chief operating decision maker is its President and Chief Executive Officer.

Recent Accounting Pronouncements

On June 16, 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income ("ASU 2011-05"), which revises the manner in which entities present comprehensive income in their financial statements. The new guidance requires companies to report components of comprehensive income in either: (1) a continuous statement of comprehensive income; or (2) two separate consecutive statements. ASU 2011-05 does not change the items that must be reported in other comprehensive income. On December 23, 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 ("ASU 2011-12"), which defers certain provisions of ASU 2011-05, including the provision that requires entities to present reclassification adjustments out of accumulated other comprehensive income by component in both the statement in which net income is presented and the statement in which other comprehensive income is presented. The unaffected provisions of ASU 2011-05 became effective for the Company in its reporting of the first quarter of fiscal 2012. The adoption of ASU 2011-05 did not have any impact on the Company's results of operations, financial position or cash flows.

On May 12, 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs ("ASU 2011-04"), which provides guidance on how (not when) to measure fair value and on what disclosures to provide about fair value measurements. ASU 2011-04 expands previously existing disclosure requirements for fair value measurements, including disclosures regarding transfers between Level 1 and Level 2 in the fair value hierarchy currently disclosed. ASU 2011-04 became effective for the Company on January 1, 2012. The adoption of ASU 2011-04 did not have any impact on the Company's condensed consolidated financial statements.

REVENUE RECOGNITION

6 Months Ended

Jun. 29, 2012

REVENUE RECOGNITION

REVENUE RECOGNITION

(2) REVENUE RECOGNITION

The Company recognizes revenue from sales when persuasive evidence of an arrangement exists, delivery has occurred, the sale price is fixed or determinable, and collectability of the related receivable is probable. In instances where customer acceptance is required, revenue is deferred until the acceptance has been achieved. When fees for products or services are not fixed and determinable, the Company defers the recording of receivables, deferred revenue and revenue until such time as the fees become due or are collected.

Revenue from maintenance and support services is recognized ratably over the service period. Maintenance revenue is deferred until the associated product is accepted by the customer and all other revenue recognition criteria have been met. Maintenance and support services include telephone support, return and repair support and unspecified rights to product upgrades and enhancements. Revenue from other professional services is typically recognized as the services are delivered if all other revenue recognition criteria have been met.

The Company's products typically have both software and non-software components that function together to deliver the products' essential functionality. In addition, hardware sold generally cannot be used apart from the software. Therefore, the Company considers its principal products to be both software and hardware-related. Many of the Company's sales involve multiple element arrangements that include product, maintenance and various professional services.

Beginning January 1, 2011, the Company adopted the provisions of ASU No. 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements ("ASU 2009-13") and ASU No. 2009-14, Software (Topic 985): Certain Revenue Arrangements That Include Software Elements ("ASU 2009-14") for new and materially modified arrangements that contain tangible products (hardware) with software elements, which comprise the majority of the Company's revenue transactions. For multiple element arrangements entered into subject to the guidance set forth in ASU 2009-13, arrangement consideration is allocated to each element based on the relative selling prices of all of the elements in the arrangement using the fair value hierarchy as required by ASU 2009-13. The Company limits the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations, or subject to customer-specific return or refund privileges.

For transactions entered into prior to January 1, 2011 and prospectively for software-only sales, the Company recognizes revenue in accordance with ASC No. 985-605, Software—Revenue Recognition ("ASC 985-605"). Under this guidance, revenue for any undelivered elements that are considered not essential to the functionality of the product and for which vendor-specific objective evidence of selling price ("VSOE") has been established is deferred and recognized upon delivery utilizing the residual method. If the Company has undelivered product for which VSOE has not been established, it defers all revenue on the entire arrangement until VSOE is established or until such elements are delivered, provided that all other revenue recognition criteria are met. If the Company has undelivered services for which VSOE has not been established, the entire arrangement is recognized as revenue over the longest remaining service period from the point in time that all services have commenced and all products have been delivered, provided that all other revenue recognition criteria are met.

The Company establishes VSOE based upon the price charged when the same element is sold separately or established by management having the relevant pricing authority. The Company has VSOE for its maintenance and support services and certain professional services. When VSOE exists it is used to determine the selling price of a deliverable. The Company has not been able to establish VSOE of any of its products and for certain of its services because the Company has not sold such products or services on a stand-alone basis, not priced its products or services within a narrow range, or had limited sales history.

When VSOE is not established, the Company attempts to establish the selling price of each element based on third-party evidence of selling price ("TPE"). The Company's solution typically differs from that of its peers as there are no similar or interchangeable competitor products or services. The Company's various product and service offerings contain a significant level of customization and differentiation and therefore, comparable pricing of competitors' products and services with similar functionality cannot be obtained. Accordingly, the Company is not able to determine TPE for its products or services.

When the Company is unable to establish selling price using VSOE or TPE, the Company uses estimated selling price ("ESP") in its allocation of arrangement consideration for the relevant deliverables. The objective of ESP is to determine the price at which the Company would transact a sale if a product or service was sold on a stand-alone basis. The Company determines ESP for its products and certain services by considering multiple factors including, but not limited to, overall market conditions, including geographic or regional-specific market factors, profit objectives and historical pricing practices for such deliverables. The determination of ESP is a formal process within the Company that includes review and approval by the Company's management.

Deferred revenue typically includes customer deposits and amounts associated with partial product shipments and maintenance or service contracts. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is reported with long-term liabilities in the condensed consolidated balance sheets. The Company defers recognition of incremental direct costs, such as cost of goods, third-party installations and commissions, until recognition of the related revenue. Such costs are classified as current assets if the deferred revenue is initially classified as current and noncurrent assets if the related deferred revenue is initially classified as long-term.

The Company excludes any taxes assessed by a governmental authority that are directly imposed on a revenue-producing transaction (i.e., sales, use, value added) from its revenue and costs. Reimbursement received for out-of-pocket expenses and shipping costs is recorded as revenue.

The Company sells the majority of its products directly to its end customers. For products sold to resellers and distributors with whom the Company has sufficient history regarding the potential for product returns or refunds or any form of concession, the Company recognizes revenue on a sell-in basis. For all other resellers and distributors, the Company recognizes revenue on a sell-through basis.

LOSS PER SHARE

6 Months Ended

Jun. 29, 2012

LOSS PER SHARE

LOSS PER SHARE

(3) LOSS PER SHARE

The calculations of shares used to compute basic and diluted loss per share for the three and six months ended June 29, 2012 and June 30, 2011 were as follows (in thousands):

	Three months ended				Six months ended

	June 29, 2012		June 30, 2011		June 29, 2012		June 30, 2011
Weighted average shares outstanding—basic		279,926		278,400		279,708		278,080
Potential dilutive common shares		—		—		—		—

Weighted average shares outstanding—diluted		279,926		278,400		279,708		278,080

Options to purchase the Company's common stock and unvested shares of restricted stock aggregating 27.6 million shares of common stock have not been included for the three and six months ended June 29, 2012 because their effect would have been antidilutive. Options to purchase the Company's common stock, unvested shares of restricted stock and unvested performance-based stock awards aggregating 21.3 million shares of common stock have not been included for the three and six months ended June 30, 2011 because their effect would have been antidilutive.

CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS

6 Months Ended

Jun. 29, 2012

CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS

CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS

(4) CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS

Cash equivalents and marketable securities are invested in debt and equity instruments, primarily U.S. government-backed and corporate obligations, which management believes to be high quality (investment grade) credit instruments.

The amortized cost, gross unrealized gains and losses and fair value of the Company's marketable debt and equity securities and investments at June 29, 2012 and December 31, 2011 were comprised of the following (in thousands):

	June 29, 2012

	Amortized cost		Unrealized gains		Unrealized losses			Fair value
Cash equivalents	$	75,182	$	—	$	—		$	75,182

Marketable securities
U.S. government agency notes	$	91,789	$	24	$	(11	)	$	91,802
Foreign government notes		3,759		1		—			3,760
Corporate debt securities		115,860		49		(63	)		115,846
Commercial paper		5,474		4		—			5,478
Certificates of deposit		17,849		5		—			17,854

	$	234,731	$	83	$	(74	)	$	234,740

Investments
U.S. government agency notes	$	15,058	$	6	$	(1	)	$	15,063
Corporate debt securities		5,320		6		(2	)		5,324
Certificates of deposit		2,501		2		—			2,503

	$	22,879	$	14	$	(3	)	$	22,890

	December 31, 2011

	Amortized cost		Unrealized gains		Unrealized losses			Fair value
Cash equivalents	$	63,105	$	—	$	—		$	63,105

Marketable securities
U.S. government agency notes	$	106,631	$	100	$	(4	)	$	106,727
Foreign government notes		1,770		1		—			1,771
Corporate debt securities		73,218		52		(20	)		73,250
Commercial paper		22,787		1		(1	)		22,787
Certificates of deposit		19,548		8		(1	)		19,555

	$	223,954	$	162	$	(26	)	$	224,090

Investments
U.S. government agency notes	$	44,144	$	4	$	(18	)	$	44,130
Corporate debt securities		11,296		9		(8	)		11,297

	$	55,440	$	13	$	(26	)	$	55,427

The contractual maturity dates for the Company's available-for-sale securities are one year or less from the respective balance sheet dates for the securities that are classified as Marketable securities and more than one year from the respective balance sheet dates for the securities that are classified as Investments in the condensed consolidated balance sheets.

Fair Value Hierarchy

The Company's financial assets or liabilities are measured using inputs from the three-tier fair value hierarchy, which is based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

Level 1.    Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2.    Level 2 applies to assets or liabilities for which there are inputs that are directly or indirectly observable in the marketplace, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets).

Level 3.    Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The following table shows the fair value of the Company's financial assets at June 29, 2012 and December 31, 2011. These financial assets are comprised of the Company's available-for-sale debt and equity securities and reported under the captions Cash and cash equivalents, Marketable securities and Investments in the condensed consolidated balance sheets (in thousands):

			Fair value measurements at June 29, 2012 using:

	Total carrying value at June 29, 2012		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents	$	75,182	$	75,182	$	—	$	—

Marketable securities
U.S. government agency notes	$	91,802	$	—	$	91,802	$	—
Foreign government notes		3,760		—		3,760		—
Corporate debt securities		115,846		—		115,846		—
Commercial paper		5,478		—		5,478		—
Certificates of deposit		17,854		—		17,854		—

	$	234,740	$	—	$	234,740		—

Investments
U.S. government agency notes	$	15,063	$	—	$	15,063	$	—
Corporate debt securities		5,324		—		5,324		—
Certificates of deposit		2,503		—		2,503		—

	$	22,890	$	—	$	22,890	$	—

			Fair value measurements at December 31, 2011 using:

	Total carrying value at December 31, 2011		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents	$	63,105	$	63,105	$	—	$	—

Marketable securities
U.S. government agency notes	$	106,727	$	—	$	106,727	$	—
Foreign government notes		1,771		—		1,771		—
Corporate debt securities		73,250		—		73,250		—
Commercial paper		22,787		—		22,787		—
Certificates of deposit		19,555		—		19,555		—

	$	224,090	$	—	$	224,090	$	—

Investments
U.S. government agency notes	$	44,130	$	—	$	44,130	$	—
Corporate debt securities		11,297		—		11,297		—

	$	55,427	$	—	$	55,427	$	—

The Company's marketable securities and investments have been valued on the basis of valuations provided by third-party pricing services, as derived from such services' pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. The Company is ultimately responsible for the condensed consolidated financial statements and underlying estimates. Accordingly, the Company assesses the reasonableness of the valuations provided by the third-party pricing services by reviewing actual trade data, broker/dealer quotes and other similar data, which are obtained from quoted market prices or other sources.

INVENTORY

6 Months Ended

Jun. 29, 2012

INVENTORY

INVENTORY

(5) INVENTORY

Inventory at June 29, 2012 and December 31, 2011 consisted of the following (in thousands):

	June 29, 2012			December 31, 2011

On-hand final assemblies and finished goods inventories	$	13,776		$	11,556
Deferred cost of goods sold		7,826			6,689

		21,602			18,245
Less current portion		(18,262	)		(15,434	)

Noncurrent portion (included in Other assets)	$	3,340		$	2,811

INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Jun. 29, 2012

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL

(6) INTANGIBLE ASSETS AND GOODWILL

The Company's intangible assets at June 29, 2012 and December 31, 2011 consisted of the following (in thousands):

Intellectual property	Useful life	Cost		Accumulated amortization		Net carrying value

June 29, 2012	5 years	$	2,999	$	1,999	$	1,000
December 31, 2011	5 years	$	2,999	$	1,799	$	1,200

The Company amortizes its intangible assets over the estimated useful lives of the respective assets. Amortization expense related to intangible assets for the three and six months ended June 29, 2012 and June 30, 2011 was as follows (in thousands):

	Three months ended				Six months ended

	June 29, 2012		June 30, 2011		June 29, 2012		June 30, 2011
Amortization of intangible assets	$	100	$	100	$	200	$	200

Estimated future amortization expense for intangible assets recorded by the Company at June 29, 2012 is as follows (in thousands):


Remainder of 2012	$	200
2013		400
2014		400

	$	1,000

Goodwill is recorded when the consideration in a business combination exceeds the fair value of net tangible and identifiable intangible assets acquired. There were no changes in the carrying amounts of the Company's goodwill in either of the six months ended June 29, 2012 or June 30, 2011.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

ACCRUED EXPENSES

6 Months Ended

Jun. 29, 2012

ACCRUED EXPENSES

ACCRUED EXPENSES

(7) ACCRUED EXPENSES

Accrued expenses at June 29, 2012 and December 31, 2011 consisted of the following (in thousands):

	June 29, 2012		December 31, 2011

Employee compensation and related costs	$	13,735	$	13,782
Other		6,278		7,838

	$	20,013	$	21,620

STOCK-BASED COMPENSATION PLANS

6 Months Ended

Jun. 29, 2012

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS

(8) STOCK-BASED COMPENSATION PLANS

The Company's 2007 Stock Incentive Plan, as amended (the "2007 Plan"), provides for the award of options to purchase the Company's common stock ("stock options"), stock appreciation rights, restricted common stock ("restricted stock"), performance-based share awards ("performance-based awards"), restricted stock units and other stock-based awards to employees, officers, directors (including those directors who are not employees or officers of the Company), consultants and advisors of the Company and its subsidiaries.

Stock Options

The activity related to the Company's outstanding stock options during the six months ended June 29, 2012 was as follows:

			Weighted average exercise price			Aggregate intrinsic value (in thousands)

Outstanding at January 1, 2012	22,627,885		$	3.82
Granted	4,985,533		$	2.80
Exercised	(36,522	)	$	1.85
Forfeited	(436,478	)	$	2.73
Expired	(570,172	)	$	4.52

Outstanding at June 29, 2012	26,570,246		$	3.63	6.83	$	209

Vested or expected to vest at June 29, 2012	24,708,106		$	3.71	6.64	$	207
Exercisable at June 29, 2012	12,854,707		$	4.64	4.30	$	171

The grant date fair value of stock options granted in the three and six months ended June 29, 2012 was estimated using the Black-Scholes valuation model with the following assumptions:

	Three months ended June 29, 2012	Six months ended June 29, 2012

Risk-free interest rate	0.71%–0.79%	0.71%–0.89%
Expected dividend yield	—	—
Weighted average volatility	67.82%	67.80%
Expected life (years)	4.5	4.5

Additional information regarding the Company's stock options is as follows:

	Three months ended June 29, 2012		Six months ended June 29, 2012

Weighted average grant date fair value of stock options granted	$	1.24	$	1.50
Total intrinsic value of stock options exercised (in thousands)	$	17	$	32
Cash received from the exercise of stock options (in thousands)	$	29	$	68

Restricted Stock Awards

The activity related to the Company's unvested restricted stock awards for the six months ended June 29, 2012 was as follows:

			Weighted average grant-date fair value

Unvested balance at January 1, 2012	602,403		$	2.38
Granted	736,946		$	2.80
Vested	(277,500	)	$	2.79
Forfeited	(11,832	)	$	2.04

Unvested balance at June 29, 2012	1,050,017		$	2.57

The total fair value of restricted stock award shares that vested during the six months ended June 29, 2012 was $0.8 million.

Performance-Based Stock Awards

The activity related to the Company's performance stock awards for the six months ended June 29, 2012 was as follows:

			Weighted average grant-date fair value

Unvested balance at January 1, 2012	1,715,056		$	3.08
Granted	—			—
Vested	—			—
Forfeited	(1,715,056	)	$	3.08

Unvested balance at June 29, 2012	—			—

At January 1, 2012, the Company had 1.7 million unvested shares of common stock related to performance-based stock awards. The performance conditions for these awards were not satisfied by December 31, 2011, the end of the performance period. As a result, these shares were forfeited on February 21, 2012, the date that the Company issued a press release reporting its financial results for the quarter and year ended December 31, 2011.

There are 2.5 million shares of the Company's common stock that are not included in the table above, as the Company has not yet established the performance conditions for these awards and accordingly, grant dates for these awards have not been established. The Company will begin to record stock-based compensation expense at the time that the performance conditions are defined and when it becomes probable that the respective performance conditions will be achieved.

Stock-Based Compensation

The condensed consolidated statements of operations include stock-based compensation for the three and six months ended June 29, 2012 and June 30, 2011 as follows (in thousands):

	Three months ended				Six months ended

	June 29, 2012		June 30, 2011		June 29, 2012		June 30, 2011
Product cost of revenue	$	36	$	109	$	89	$	217
Service cost of revenue		209		389		384		774
Research and development		633		527		1,249		1,060
Sales and marketing		491		563		958		1,060
General and administrative		654		627		1,460		1,130

	$	2,023	$	2,215	$	4,140	$	4,241

There was no income tax benefit for employee stock-based compensation expense for the six months ended June 29, 2012 or June 30, 2011 due to the income tax valuation allowance recorded.

At June 29, 2012, there was $17.6 million, net of expected forfeitures, of unrecognized stock-based compensation expense related to unvested stock options and restricted stock awards. This expense is expected to be recognized over a weighted average period of approximately three years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

MAJOR CUSTOMERS

6 Months Ended

Jun. 29, 2012

MAJOR CUSTOMERS

MAJOR CUSTOMERS

(9) MAJOR CUSTOMERS

The following customers each contributed 10% or more of the Company's revenue in at least one of the three and six month periods ended June 29, 2012 and June 30, 2011:

	Three months ended				Six months ended

Customer	June 29, 2012	June 30, 2011			June 29, 2012	June 30, 2011
AT&T Inc.	27%		12	%	31%	*
Qwest Communications International, Inc.	*		13	%	*	*
Bahamas Telecommunications Company Ltd.	*		*		*	30%

*: Represents less than 10% of revenue

At June 29, 2012, two customers each accounted for 10% or more of the Company's accounts receivable balance, representing approximately 34% in the aggregate of total accounts receivable. At December 31, 2011, one customer accounted for 10% or more of the Company's accounts receivable balance, representing approximately 21% of the Company's accounts receivable balance. The Company performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts and such losses have been within management's expectations.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

GEOGRAPHIC INFORMATION

6 Months Ended

Jun. 29, 2012

GEOGRAPHIC INFORMATION

GEOGRAPHIC INFORMATION

(10) GEOGRAPHIC INFORMATION

The Company's classification of revenue by geographic area is determined by the location to which the product is shipped or where the services are performed. The following table summarizes revenue by geographic area as a percentage of total revenue for the three and six months ended June 29, 2012 and June 30, 2011:

	Three months ended						Six months ended

	June 29, 2012			June 30, 2011			June 29, 2012			June 30, 2011
United States		73	%		78	%		74	%		55	%
Japan		10			12			13			8
Other Asia Pacific		3			1			2			1
Europe, Middle East and Africa		12			8			9			5
Other		2			1			2			31

		100	%		100	%		100	%		100	%

Bahamas Telecommunications Company Ltd. ("Bahamas Telecom") accounted for 30% of the Company's revenue in the six months ended June 30, 2011. Bahamas Telecom is located in the Caribbean and is included as a component of "Other" in the table above.

International revenue, both as a percentage of total revenue and absolute dollars, may vary from one period to the next, and accordingly, historical data may not be indicative of future periods.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Publisher FASB
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+ Details

INCOME TAXES

6 Months Ended

Jun. 29, 2012

INCOME TAXES

INCOME TAXES

(11) INCOME TAXES

The Company's income tax provisions for the six months ended June 29, 2012 and June 30, 2011 reflect the Company's estimates of the effective rates expected to be applicable for the respective full fiscal years, adjusted for any discrete events, which are recorded in the period that they occur. These estimates are reevaluated each quarter based on the Company's estimated tax expense for the full fiscal year. The estimated effective rates for the six months ended June 29, 2012 and June 30, 2011 do not include any benefit for the Company's domestic losses, as the Company has concluded that a valuation allowance on any domestic benefit is required.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

PROPOSED ACQUISITION OF NETWORK EQUIPMENT TECHNOLOGIES, INC.

6 Months Ended

Jun. 29, 2012

PROPOSED ACQUISITION OF NETWORK EQUIPMENT TECHNOLOGIES, INC.

PROPOSED ACQUISITION OF NETWORK EQUIPMENT TECHNOLOGIES, INC.

(12) PROPOSED ACQUISITION OF NETWORK EQUIPMENT TECHNOLOGIES, INC.

On June 18, 2012, the Company and Network Equipment Technologies, Inc. ("NET") entered into a definitive agreement for Sonus to acquire NET in a cash merger. The purchase price of $1.35 per share values the transaction at approximately $42 million, excluding acquisition-related costs, and is expected to close in the third quarter of 2012, subject to NET stockholder approval, the satisfaction of customary closing conditions and any applicable regulatory reviews. The acquisition has been approved by the Boards of Directors of both companies.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 29, 2012

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

(13) COMMITMENTS AND CONTINGENCIES

2001 IPO Litigation

In November 2001, a purchaser of the Company's common stock filed a complaint in the United States District court for the Southern District of New York (the "District Court") against the Company, two of its officers and the lead underwriters alleging violations of the federal securities laws in connection with the Company's initial public offering ("IPO") and seeking unspecified monetary damages. The purchaser sought to represent a class of persons who purchased the Company's common stock between the date of the IPO on May 24, 2000 and December 6, 2000. The amended complaint, filed in April 2002, alleged that the Company's registration statement contained false or misleading information or omitted to state material facts concerning the alleged receipt of undisclosed compensation by the underwriters and the existence of undisclosed arrangements between the underwriters and certain purchasers to make additional purchases in the after-market. The claims against the Company were asserted under Section 10(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Section 11 of the Securities Act of 1933, as amended (the "Securities Act"), and against the individual defendants under Sections 11 and 15 of the Securities Act and Sections 10(b) and 20(a) of the Exchange Act. Other plaintiffs had filed substantially similar class action cases against approximately 300 other publicly-traded companies and their IPO underwriters which, along with the actions against the Company, were transferred to a single federal judge for purposes of coordinated case management.

On July 15, 2002, the Company, collectively with the other issuers named as defendants in these coordinated proceedings, filed a collective motion to dismiss the consolidated amended complaints on various legal grounds common to all or most of the issuer defendants. The plaintiffs voluntarily dismissed the claims against many of the individual defendants, including the Company's officers named in the complaint. On February 19, 2003, the District Court granted a portion of the motion to dismiss by dismissing the Section 10(b) claims against certain defendants, including the Company, but denied the remainder of the motion as to the defendants.

On October 5, 2009, the District Court issued an opinion granting plaintiffs' motion for final approval of a revised proposed settlement, plan of distribution of the settlement fund and certification of the settlement classes. An Order and Final Judgment was entered on January 14, 2010. On January 13, 2012, the United States Court of Appeals for the Second Circuit issued a mandate dismissing an appeal, thereby upholding the January 14, 2010 Order and Final Judgment and ending this case. The outcome of this litigation did not have a material impact on the Company's condensed consolidated financial statements.

On October 5, 2007, Vanessa Simmonds, a purported shareholder of the Company, filed a complaint in the United States District Court for the Western District of Washington (the "Western District Court") for recovery of short-swing profits under Section 16(b) of the Exchange Act against the underwriters in the IPO in 2000. On February 28, 2008, the plaintiff filed an amended complaint asserting substantially similar claims as set forth in the initial complaint. The amended complaint sought recovery against the underwriters for profits they received from the sale of the Company's common stock in connection with the IPO. The Company was named as a nominal defendant but has no liability for the asserted claims. No Sonus officers or directors were named in the amended complaint. Several other issuers and underwriters were subsequently named as defendants. On March 12, 2009, the Western District Court entered its judgment in the case and granted the moving issuers' motion to dismiss, finding plaintiff's demand letters were insufficient to put the issuers on notice of the claims asserted against them.

Following an appeal to the United States Court of Appeals for the Ninth Circuit (the "Ninth Circuit"), on December 2, 2010, the Ninth Circuit affirmed the Western District Court's decision to dismiss the moving issuers' cases (including the Company's) on the grounds that plaintiff's demand letters were insufficient to put the issuers on notice of the claims asserted against them and further ordered that the dismissals be made with prejudice. The Ninth Circuit, however, reversed and remanded the Western District Court's decision on the underwriters' motion to dismiss as to the claims arising from the non-moving issuers' IPOs, finding plaintiff's claims were not time-barred under the applicable statute of limitations. In remanding, the Ninth Circuit advised the non-moving issuers and underwriters to file in the Western District Court the same challenges to plaintiff's demand letters that moving issuers had filed.

On April 5, 2011, the plaintiff filed a Petition for Writ of Certiorari with the U.S. Supreme Court seeking reversal of the Ninth Circuit's December 2, 2010 decision relating to the adequacy of the pre-suit demand. On April 15, 2011, underwriter defendants filed a Petition for Writ of Certiorari with the U.S. Supreme Court seeking reversal of the Ninth Circuit's December 2, 2010 decision relating to the statute of limitations issue. On June 27, 2011, the U.S. Supreme Court denied the plaintiff's petition regarding the demand issue and granted the underwriter defendants' petition relating to the statute of limitations issue. Oral arguments on underwriters' petition were heard on November 29, 2011. On March 26, 2012, the U.S. Supreme Court vacated the Ninth Circuit's holding that petitioner's claims were not time-barred, and remanded the cases to the Western District Court for proceedings consistent with the U.S. Supreme Court's opinion. On June 7, 2012, the mandate of the Ninth Circuit was formally entered. On June 11, 2012, the case was concluded when the plaintiff voluntarily dismissed the case with prejudice as to the adequacy-of-the-pre-suit demand issue, and without prejudice as to all other issues.

Other

In addition, we are often a party to disputes and legal proceedings that we consider routine and incidental to our business. Management does not expect the results of any of these actions to have a material effect on our business or condensed consolidated financial statements.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 440
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-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

SUBSEQUENT EVENT

6 Months Ended

Jun. 29, 2012

SUBSEQUENT EVENT

SUBSEQUENT EVENT

(14) SUBSEQUENT EVENT

On August 7, 2012, the Company adopted a restructuring initiative to streamline operations and reduce its operating costs. The restructuring plan will result in a workforce reduction of approximately 90 people worldwide. The Company expects to record a restructuring charge of approximately $2.3 million for cash expenditures for severance and related costs in the third quarter of fiscal 2012. This restructuring charge does not include any potential restructuring and related costs associated with the proposed acquisition of NET.

BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 29, 2012

BASIS OF PRESENTATION

Basis of Presentation

Basis of Presentation

Principles of Consolidation

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Sonus and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates and Judgments

Use of Estimates and Judgments

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Operating segments

Operating Segments

Recent Accounting Pronouncements

Recent Accounting Pronouncements

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 40
-Section 45
-URI http://asc.fasb.org/section&trid=2197723

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2196966

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 325
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=2197087

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.3A-02)
-URI http://asc.fasb.org/extlink&oid=6959686&loc=d3e355033-122828

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=16385135&loc=d3e33801-111570

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 5, 6, 16-19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 96-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name FASB Interpretation (FIN)
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Principles Board Opinion (APB)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 97-2
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph k
-Article 1

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02, 03
-Article 3A

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

LOSS PER SHARE (Tables)

6 Months Ended

Jun. 29, 2012

LOSS PER SHARE

Schedule of calculations of shares used to compute basic and diluted earnings (loss) per share

	Three months ended				Six months ended

	June 29, 2012		June 30, 2011		June 29, 2012		June 30, 2011
Weighted average shares outstanding—basic		279,926		278,400		279,708		278,080
Potential dilutive common shares		—		—		—		—

Weighted average shares outstanding—diluted		279,926		278,400		279,708		278,080

CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS (Tables)

6 Months Ended

Jun. 29, 2012

CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS

Schedule of amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments

	June 29, 2012

	Amortized cost		Unrealized gains		Unrealized losses			Fair value
Cash equivalents	$	75,182	$	—	$	—		$	75,182

Marketable securities
U.S. government agency notes	$	91,789	$	24	$	(11	)	$	91,802
Foreign government notes		3,759		1		—			3,760
Corporate debt securities		115,860		49		(63	)		115,846
Commercial paper		5,474		4		—			5,478
Certificates of deposit		17,849		5		—			17,854

	$	234,731	$	83	$	(74	)	$	234,740

Investments
U.S. government agency notes	$	15,058	$	6	$	(1	)	$	15,063
Corporate debt securities		5,320		6		(2	)		5,324
Certificates of deposit		2,501		2		—			2,503

	$	22,879	$	14	$	(3	)	$	22,890

	December 31, 2011

	Amortized cost		Unrealized gains		Unrealized losses			Fair value
Cash equivalents	$	63,105	$	—	$	—		$	63,105

Marketable securities
U.S. government agency notes	$	106,631	$	100	$	(4	)	$	106,727
Foreign government notes		1,770		1		—			1,771
Corporate debt securities		73,218		52		(20	)		73,250
Commercial paper		22,787		1		(1	)		22,787
Certificates of deposit		19,548		8		(1	)		19,555

	$	223,954	$	162	$	(26	)	$	224,090

Investments
U.S. government agency notes	$	44,144	$	4	$	(18	)	$	44,130
Corporate debt securities		11,296		9		(8	)		11,297

	$	55,440	$	13	$	(26	)	$	55,427

Schedule of fair value of financial assets

			Fair value measurements at June 29, 2012 using:

	Total carrying value at June 29, 2012		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents	$	75,182	$	75,182	$	—	$	—

Marketable securities
U.S. government agency notes	$	91,802	$	—	$	91,802	$	—
Foreign government notes		3,760		—		3,760		—
Corporate debt securities		115,846		—		115,846		—
Commercial paper		5,478		—		5,478		—
Certificates of deposit		17,854		—		17,854		—

	$	234,740	$	—	$	234,740		—

Investments
U.S. government agency notes	$	15,063	$	—	$	15,063	$	—
Corporate debt securities		5,324		—		5,324		—
Certificates of deposit		2,503		—		2,503		—

	$	22,890	$	—	$	22,890	$	—

			Fair value measurements at December 31, 2011 using:

	Total carrying value at December 31, 2011		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents	$	63,105	$	63,105	$	—	$	—

Marketable securities
U.S. government agency notes	$	106,727	$	—	$	106,727	$	—
Foreign government notes		1,771		—		1,771		—
Corporate debt securities		73,250		—		73,250		—
Commercial paper		22,787		—		22,787		—
Certificates of deposit		19,555		—		19,555		—

	$	224,090	$	—	$	224,090	$	—

Investments
U.S. government agency notes	$	44,130	$	—	$	44,130	$	—
Corporate debt securities		11,297		—		11,297		—

	$	55,427	$	—	$	55,427	$	—

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring and/or nonrecurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

INVENTORY (Tables)

6 Months Ended

Jun. 29, 2012

INVENTORY

Schedule of inventory

	June 29, 2012			December 31, 2011

On-hand final assemblies and finished goods inventories	$	13,776		$	11,556
Deferred cost of goods sold		7,826			6,689

		21,602			18,245
Less current portion		(18,262	)		(15,434	)

Noncurrent portion (included in Other assets)	$	3,340		$	2,811

INTANGIBLE ASSETS AND GOODWILL (Tables)

6 Months Ended

Jun. 29, 2012

INTANGIBLE ASSETS AND GOODWILL

Schedule of intangible assets

Intellectual property	Useful life	Cost		Accumulated amortization		Net carrying value

June 29, 2012	5 years	$	2,999	$	1,999	$	1,000
December 31, 2011	5 years	$	2,999	$	1,799	$	1,200

Schedule of amortization expense related to intangible assets

	Three months ended				Six months ended

	June 29, 2012		June 30, 2011		June 29, 2012		June 30, 2011
Amortization of intangible assets	$	100	$	100	$	200	$	200

Schedule of estimated future amortization expense for intangible assets


Remainder of 2012	$	200
2013		400
2014		400

	$	1,000

ACCRUED EXPENSES (Tables)

6 Months Ended

Jun. 29, 2012

ACCRUED EXPENSES

Schedule of accrued expenses

	June 29, 2012		December 31, 2011

Employee compensation and related costs	$	13,735	$	13,782
Other		6,278		7,838

	$	20,013	$	21,620

STOCK-BASED COMPENSATION PLANS (Tables)

6 Months Ended

Jun. 29, 2012

STOCK-BASED COMPENSATION PLANS

Schedule of activity related to outstanding stock options

			Weighted average exercise price			Aggregate intrinsic value (in thousands)

Outstanding at January 1, 2012	22,627,885		$	3.82
Granted	4,985,533		$	2.80
Exercised	(36,522	)	$	1.85
Forfeited	(436,478	)	$	2.73
Expired	(570,172	)	$	4.52

Outstanding at June 29, 2012	26,570,246		$	3.63	6.83	$	209

Vested or expected to vest at June 29, 2012	24,708,106		$	3.71	6.64	$	207
Exercisable at June 29, 2012	12,854,707		$	4.64	4.30	$	171

Schedule of assumptions used to estimate the fair value of options at the date of grant using the Black-Scholes option pricing model

	Three months ended June 29, 2012	Six months ended June 29, 2012

Risk-free interest rate	0.71%–0.79%	0.71%–0.89%
Expected dividend yield	—	—
Weighted average volatility	67.82%	67.80%
Expected life (years)	4.5	4.5

Schedule of additional information regarding stock options

	Three months ended June 29, 2012		Six months ended June 29, 2012

Weighted average grant date fair value of stock options granted	$	1.24	$	1.50
Total intrinsic value of stock options exercised (in thousands)	$	17	$	32
Cash received from the exercise of stock options (in thousands)	$	29	$	68

Schedule of activity related to restricted stock awards

			Weighted average grant-date fair value

Unvested balance at January 1, 2012	602,403		$	2.38
Granted	736,946		$	2.80
Vested	(277,500	)	$	2.79
Forfeited	(11,832	)	$	2.04

Unvested balance at June 29, 2012	1,050,017		$	2.57

Schedule of activity related to performance stock awards

			Weighted average grant-date fair value

Unvested balance at January 1, 2012	1,715,056		$	3.08
Granted	—			—
Vested	—			—
Forfeited	(1,715,056	)	$	3.08

Unvested balance at June 29, 2012	—			—

Schedule of stock-based compensation expenses which are included in condensed consolidated statement of operations

	Three months ended				Six months ended

	June 29, 2012		June 30, 2011		June 29, 2012		June 30, 2011
Product cost of revenue	$	36	$	109	$	89	$	217
Service cost of revenue		209		389		384		774
Research and development		633		527		1,249		1,060
Sales and marketing		491		563		958		1,060
General and administrative		654		627		1,460		1,130

	$	2,023	$	2,215	$	4,140	$	4,241

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

MAJOR CUSTOMERS (Tables)

6 Months Ended

Jun. 29, 2012

MAJOR CUSTOMERS

Schedule of customers contributing 10% or more of the revenue

	Three months ended				Six months ended

Customer	June 29, 2012	June 30, 2011			June 29, 2012	June 30, 2011
AT&T Inc.	27%		12	%	31%	*
Qwest Communications International, Inc.	*		13	%	*	*
Bahamas Telecommunications Company Ltd.	*		*		*	30%

*: Represents less than 10% of revenue

GEOGRAPHIC INFORMATION (Tables)

6 Months Ended

Jun. 29, 2012

GEOGRAPHIC INFORMATION

Summary of revenue by geographic area as a percentage of total revenue

	Three months ended						Six months ended

	June 29, 2012			June 30, 2011			June 29, 2012			June 30, 2011
United States		73	%		78	%		74	%		55	%
Japan		10			12			13			8
Other Asia Pacific		3			1			2			1
Europe, Middle East and Africa		12			8			9			5
Other		2			1			2			31

		100	%		100	%		100	%		100	%

BASIS OF PRESENTATION (Details)	6 Months Ended
BASIS OF PRESENTATION (Details)	Jun. 29, 2012 segment
BASIS OF PRESENTATION
Number of reportable operating segments	1

LOSS PER SHARE (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
LOSS PER SHARE (Details) - shares shares in Thousands	Jun. 29, 2012	Jun. 30, 2011	Jun. 29, 2012	Jun. 30, 2011
Reconciliation of weighted average shares outstanding from basic to diluted
Weighted average shares outstanding - basic	279,926	278,400	279,708	278,080
Weighted average shares outstanding - diluted	279,926	278,400	279,708	278,080
Common stock and unvested shares of restricted stock not included because their effect would have been antidilutive (in shares)	27,600	21,300	27,600	21,300

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References + Details

- Definition

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2012	Dec. 31, 2011
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments
Cash equivalents, amortized cost	$ 75,182	$ 63,105
Cash equivalents, fair value	75,182	63,105
Marketable securities, amortized cost	234,731	223,954
Marketable securities, unrealized gains	83	162
Marketable securities, unrealized losses	(74)	(26)
Marketable securities, fair value	234,740	224,090
Investments, amortized cost	22,879	55,440
Investments, unrealized gains	14	13
Investments, unrealized losses	(3)	(26)
Investments, fair value	$ 22,890	55,427
Maximum
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments
Period considered to classify available-for-sale securities as marketable securities	1 year
Minimum
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments
Period considered to classify available-for-sale securities as investments	1 year
U.S. government agency notes
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments
Marketable securities, amortized cost	$ 91,789	106,631
Marketable securities, unrealized gains	24	100
Marketable securities, unrealized losses	(11)	(4)
Marketable securities, fair value	91,802	106,727
Investments, amortized cost	15,058	44,144
Investments, unrealized gains	6	4
Investments, unrealized losses	(1)	(18)
Investments, fair value	15,063	44,130
Foreign government notes
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments
Marketable securities, amortized cost	3,759	1,770
Marketable securities, unrealized gains	1	1
Marketable securities, fair value	3,760	1,771
Corporate debt securities
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments
Marketable securities, amortized cost	115,860	73,218
Marketable securities, unrealized gains	49	52
Marketable securities, unrealized losses	(63)	(20)
Marketable securities, fair value	115,846	73,250
Investments, amortized cost	5,320	11,296
Investments, unrealized gains	6	9
Investments, unrealized losses	(2)	(8)
Investments, fair value	5,324	11,297
Commercial paper
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments
Marketable securities, amortized cost	5,474	22,787
Marketable securities, unrealized gains	4	1
Marketable securities, unrealized losses		(1)
Marketable securities, fair value	5,478	22,787
Certificates of deposit
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments
Marketable securities, amortized cost	17,849	19,548
Marketable securities, unrealized gains	5	8
Marketable securities, unrealized losses		(1)
Marketable securities, fair value	17,854	$ 19,555
Investments, amortized cost	2,501
Investments, unrealized gains	2
Investments, fair value	$ 2,503

CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS (Details 2) - USD ($) $ in Thousands	Jun. 29, 2012	Dec. 31, 2011
Cash and cash equivalents, Marketable securities and Investments
Cash equivalents, fair value	$ 75,182	$ 63,105
Marketable securities, fair value	234,740	224,090
Investments, fair value	22,890	55,427
Total carrying value
Cash and cash equivalents, Marketable securities and Investments
Cash equivalents, fair value	75,182	63,105
Marketable securities, fair value	234,740	224,090
Investments, fair value	22,890	55,427
Quoted prices in active markets (Level 1)
Cash and cash equivalents, Marketable securities and Investments
Cash equivalents, fair value	75,182	63,105
Significant other observable inputs (Level 2)
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	234,740	224,090
Investments, fair value	22,890	55,427
U.S. government agency notes \| Total carrying value
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	91,802	106,727
Investments, fair value	15,063	44,130
U.S. government agency notes \| Significant other observable inputs (Level 2)
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	91,802	106,727
Investments, fair value	15,063	44,130
Foreign government notes \| Total carrying value
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	3,760	1,771
Foreign government notes \| Significant other observable inputs (Level 2)
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	3,760	1,771
Corporate debt securities \| Total carrying value
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	115,846	73,250
Investments, fair value	5,324	11,297
Corporate debt securities \| Significant other observable inputs (Level 2)
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	115,846	73,250
Investments, fair value	5,324	11,297
Commercial paper \| Total carrying value
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	5,478	22,787
Commercial paper \| Significant other observable inputs (Level 2)
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	5,478	22,787
Certificates of deposit \| Total carrying value
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	17,854	19,555
Investments, fair value	2,503
Certificates of deposit \| Significant other observable inputs (Level 2)
Cash and cash equivalents, Marketable securities and Investments
Marketable securities, fair value	17,854	$ 19,555
Investments, fair value	$ 2,503

INVENTORY (Details) - USD ($) $ in Thousands	Jun. 29, 2012	Dec. 31, 2011
INVENTORY
On-hand final assemblies and finished goods inventories	$ 13,776	$ 11,556
Deferred cost of goods sold	7,826	6,689
Gross inventory	21,602	18,245
Less current portion	(18,262)	(15,434)
Noncurrent portion (included in Other assets)	$ 3,340	$ 2,811