Core Insights - Ribbon Communications Inc. has introduced two new routers, the NPT 2714 and NPT 2507, enhancing network flexibility and investment protection for service providers and enterprises [1][2]. Product Features - The NPT 2714 router features an innovative orthogonal architecture that combines the benefits of modular and fixed systems, providing redundancy and I/O diversity while maintaining cost efficiency [2][3]. - The NPT 2507 is a fixed form factor router with a capacity of 7.2Tbps, designed for compact network solutions requiring 100G and 400G interfaces [3][6]. - Both routers will be generally available in Q3 2025, showcasing Ribbon's commitment to delivering innovative solutions for network operators [3]. Technological Advancements - The NPT 2714 offers a "Pay As You Grow" model, allowing it to start as a 7.2Tbps router and upgrade to 14.4Tbps by adding a switching card [6]. - Security features include software-driven MACsec, ensuring availability across all network interfaces without hardware dependencies [6]. - The routers support coherent routing with IP and DWDM on a single platform, featuring 36 x 400G ZR+ coherent interfaces [6]. Company Overview - Ribbon Communications specializes in communications software and IP optical networking solutions, focusing on modernizing networks for improved competitive positioning [4]. - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) matters, providing an annual Sustainability Report to stakeholders [4].

Core Viewpoint - Ribbon Communications Inc. is actively participating in the Citizens JMP Technology Conference to engage with institutional investors and financial sponsors, highlighting its commitment to modernizing communication networks for service providers and enterprises [1][2]. Company Overview - Ribbon Communications (Nasdaq: RBBN) specializes in delivering communications software and IP optical networking solutions globally, focusing on enhancing competitive positioning and business outcomes for its customers [3]. - The company offers a comprehensive portfolio that includes software-centric solutions, cloud-native offerings, security and analytics tools, and networking solutions tailored for 5G [3]. - Ribbon maintains a strong commitment to Environmental, Social, and Governance (ESG) matters, providing an annual Sustainability Report to stakeholders [3]. Conference Participation - CFO John Townsend will represent Ribbon Communications at the Citizens JMP Technology Conference on March 3 and 4 in San Francisco, facilitating one-on-one meetings with qualified participants [1][2].

Financial Data and Key Metrics Changes - The company reported revenues of $251 million for Q4 2024, an increase of 11% year-over-year, and full-year revenues of $834 million, up 1% from the previous year [28] - Adjusted EBITDA for Q4 was $55 million, a 30% increase year-over-year, and for the full year, adjusted EBITDA reached $119 million, up $28 million from the prior year [32][33] - Non-GAAP gross margin for Q4 was 58.1%, up 130 basis points year-over-year, while the full-year gross margin was 55.9%, an increase of 280 basis points [29] Business Line Data and Key Metrics Changes - The Cloud & Edge segment generated Q4 revenues of $165 million, a 35% increase year-over-year, and full-year revenues of $505 million, reflecting a 6% increase [34] - The IP Optical Networks segment reported Q4 revenues of $87 million, a 17% decrease year-over-year, with full-year revenues of $329 million, down 6% due to the suspension of shipments to Eastern Europe [36] Market Data and Key Metrics Changes - Sales to US Tier 1 service providers in the Cloud & Edge segment doubled year-over-year, while sales to global enterprises, including US federal agencies, increased by over 60% [9] - In India, sales increased by 30% quarter-over-quarter and 10% year-over-year, with a strong second half contributing to over 40% growth compared to the first half [20][22] Company Strategy and Development Direction - The company aims to leverage its broad portfolio and global presence, focusing on cross-selling solutions and expanding its business with Tier 1 service providers [42] - There is a commitment to improving the IP routing and optical transport business in North America, with a focus on rural broadband expansion [43][45] - The company is also targeting growth in the fiber transport market and investing in AI technologies to enhance its offerings [45][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the investment cycle in network modernization and fiber networks, expecting continued profitable growth in 2025 [11][41] - The company anticipates a revenue range of $870 million to $890 million for 2025, implying a year-over-year growth rate of approximately 5% [55] Other Important Information - The company ended Q4 with a cash balance of $90 million and a net debt leverage ratio of 2.2 times [39] - The company has over 200 potential metaswitch replacement opportunities in its pipeline [17] Q&A Session Summary Question: What should be taken away from the quarterly guide regarding seasonality? - Management indicated that the toughest comparison will be in Q1 due to the Eastern European impact, but they expect easier comparisons in subsequent quarters [62] Question: Is there a possibility to restart business in Eastern Europe? - Management confirmed that they are prepared to restart business quickly if restrictions are lifted, but the timeline is uncertain [64] Question: What is the most important driver for the Cloud & Edge and IP Optical segments moving forward? - For Cloud & Edge, execution on existing contracts is crucial, while for IP Optical, growth in North America and India are key focus areas [68][70] Question: What is the potential revenue from Verizon's modernization program? - Management indicated a run rate of over $100 million per annum with Verizon, expecting growth from that level [97] Question: What is the opportunity related to the replacement of Chinese suppliers? - Management noted that there is a long tail of opportunity related to replacing Chinese suppliers, which they continue to pursue [53]

Group 1: Earnings Performance - Ribbon Communications reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and up from $0.12 per share a year ago [1] - The earnings surprise for this quarter was 33.33%, with the company having surpassed consensus EPS estimates two times over the last four quarters [2] - The company posted revenues of $251.36 million for the quarter, surpassing the Zacks Consensus Estimate by 3.62%, and an increase from $226.4 million year-over-year [3] Group 2: Stock Performance and Outlook - Ribbon Communications shares have increased approximately 4.3% since the beginning of the year, compared to the S&P 500's gain of 3.2% [4] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $190.66 million, and $0.27 on revenues of $866.46 million for the current fiscal year [8] - The estimate revisions trend for Ribbon Communications is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Group 3: Industry Context - The Communication - Network Software industry, to which Ribbon Communications belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, which may impact stock performance [9] - Frontier Communications, another company in the same industry, is expected to report a quarterly loss of $0.19 per share, reflecting a significant year-over-year decline of -371.4% [10]

Ribbon Communications Fourth Quarter and Full Year 2024 Results February 12, 2025 © 2025 Ribbon | Public 1 © 2025 Ribbon | Public 2 Fourth Quarter and 2024 Business Highlights | Consolidated Q4 FY 2024 Revenue $251M +11% Growth YoY Gross Margin 58%; +120 bps YoY Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks ...

Financial Performance - Fourth quarter 2024 revenue reached $251 million, an increase of 11% year-over-year from $226 million in Q4 2023[4] - GAAP operating income for Q4 2024 was $33 million, compared to $17 million in Q4 2023, reflecting strong profitability growth[4] - Non-GAAP adjusted EBITDA for Q4 2024 increased by 30% year-over-year to $55 million, representing 22% of sales[4] - Full year 2024 revenue was $834 million, slightly up from $826 million in 2023, with a GAAP operating income turnaround from a loss of $24 million in 2023 to a profit of $17 million[5] - Non-GAAP adjusted EBITDA for the full year 2024 improved by 31% to $119 million, or 14% of sales[5] - Total revenue for Q4 2024 was $251,359,000, an increase of 19.6% from $210,238,000 in Q3 2024 and a 11.0% increase from $226,401,000 in Q4 2023[33] - Gross profit for Q4 2024 was $140,073,000, resulting in a gross margin of 55.7%, compared to 52.1% in Q3 2024 and 53.8% in Q4 2023[33] - Net income for Q4 2024 was $6,364,000, a significant improvement from a net loss of $13,422,000 in Q3 2024 and a net income of $7,079,000 in Q4 2023[33] - For the year ended December 31, 2024, total revenue was $833,881,000, up from $826,339,000 in 2023, with product revenue slightly increasing to $447,229,000 from $445,150,000[35] - The company reported a gross margin of 52.7% for the year ended December 31, 2024, compared to 49.4% in 2023[35] - GAAP net loss for the year ended December 31, 2024, was $54,235, compared to a net loss of $66,206 for the year ended December 31, 2023, representing a 18.4% improvement[47] - Non-GAAP net income for the year ended December 31, 2024, was $44,192, up from $35,848 in 2023, reflecting a 23.3% increase[47] - GAAP gross margin improved to 52.7% for the year ended December 31, 2024, compared to 49.4% in 2023, indicating a 3.3 percentage point increase[47] - Non-GAAP adjusted EBITDA for the year ended December 31, 2024, was $118,717, compared to $90,509 in 2023, representing a 31.1% increase[47] Future Projections - The company anticipates 2025 revenue between $870 million and $890 million, with adjusted EBITDA projected at $130 million to $140 million[12] - For Q1 2025, revenue is projected to be between $185 million and $195 million, with adjusted EBITDA expected to range from $12 million to $18 million[12] - For Q1 2025, the revenue outlook is set at a midpoint of $190 million, with a range of +/-$5 million, while the full year 2025 revenue is projected at $880 million, with a range of +/-$10 million[51] - The GAAP gross margin outlook for Q1 2025 is 50.25%, expected to improve to 52.0% for the full year 2025[51] - Non-GAAP gross margin is projected at 53.25% for Q1 2025, with a slight variation of +/-0.25%, and 54.5% for the full year 2025, with a variation of +/-0.5%[51] - The company anticipates a GAAP income from operations of $(6.4) million for Q1 2025, improving to $49.7 million for the full year 2025[51] Cash and Liabilities - The company reported a year-end cash position of $90 million, benefiting from higher collections and operational efficiency[10] - Cash and cash equivalents increased to $87,770,000 as of December 31, 2024, compared to $26,494,000 in 2023[37] - Cash and cash equivalents at the end of the period increased to $90,479 from $26,630 at the beginning of the year, a significant increase of 239.5%[39] - Total liabilities as of December 31, 2024, were $757,933,000, an increase from $691,390,000 in 2023[37] Operational Efficiency - The company reported a significant increase in accounts receivable, which rose to $12,420 from $5,726, a 117.0% increase[39] - Net cash provided by operating activities increased significantly to $50,240 for the year ended December 31, 2024, compared to $17,087 for the previous year, marking a 194.5% increase[39] - The company expects continued growth driven by network modernization across service providers, enterprise, and federal customers in 2025[11] - The fourth quarter saw a book-to-bill ratio of 1.1x, indicating strong demand and sales momentum[10] Costs and Expenses - Total stock-based compensation for the year was $16,086, down from $21,806 in 2023, a decrease of 26.4%[47] - Stock-based compensation is expected to be $4.0 million for Q1 2025 and $16.2 million for the full year 2025[51] - Litigation costs are projected at $0.3 million for Q1 2025 and $1.2 million for the full year 2025[51] - Restructuring and related costs are estimated at $2.0 million for Q1 2025 and $8.0 million for the full year 2025[51] - The company reported litigation costs of $11,198 million for the trailing twelve months, compared to $1,307 million in the previous year[49] Adjusted Measures - Adjusted EBITDA is used as a supplemental measure to assess performance, excluding non-cash and non-operational expenses[30] - The company expects to continue marking the Warrant liability to market each reporting period until it is settled[27] - The company wrote off a $6 million tax indemnity asset related to its 2020 acquisition of ECI Telecom Group Ltd. upon its expiration[28] - GAAP income from operations for the trailing twelve months was $16,872 million, a significant improvement from a loss of $24,285 million in the previous year[49] - Non-GAAP Adjusted EBITDA increased to $118,717 million, up from $90,509 million year-over-year, reflecting a strong operational performance[49]

Core Insights - Ribbon Communications Inc. reported record quarterly sales and operating income, with a revenue growth of 11% year-over-year driven by strong demand from service providers, enterprise customers, and U.S. federal agencies [1][4] Financial Performance - Fourth quarter 2024 revenue was $251 million, up from $226 million in Q4 2023 and $210 million in Q3 2024. GAAP operating income was $33 million, compared to $17 million in Q4 2023. Non-GAAP adjusted EBITDA increased by 30% year-over-year to $55 million, representing 22% of sales [2][3] - For the full year 2024, revenue reached $834 million, slightly up from $826 million in 2023. GAAP operating income improved to $17 million from a loss of $24 million in 2023. Non-GAAP adjusted EBITDA rose by 31% to $119 million, or 14% of sales [3][6] Market Demand and Growth Drivers - Revenue growth was supported by increased sales to U.S. Tier One service providers, federal defense agencies, and enterprise customers, with notable contributions from U.S. rural broadband, Europe, and India. Profitability improved by over 30% compared to 2023 [5][7] - The company anticipates further momentum in 2025, driven by industry-wide focus on network modernization and investments in fiber networks [5][8] Business Outlook - For 2025, the company projects revenue between $870 million and $890 million, with non-GAAP gross margins expected to be in the range of 54% to 55%. Adjusted EBITDA is projected to be between $130 million and $140 million [9][10] - The first quarter of 2025 is expected to generate revenue between $185 million and $195 million, with non-GAAP gross margins projected at 53% to 53.5% [9]

Core Insights - Ribbon Communications Inc. has announced the deployment of a managed optical network for EENet of HTM, enhancing network management for the Estonian Education and Research Network [1][2] - The network features Ribbon's Apollo programmable optical networks, offering flexibility with coherent wavelength solutions ranging from 100G to 1.2T and supporting layer 1 optical encryption [2][3] - EENet is utilizing Ribbon's Muse Multilayer Automation Platform to optimize IP Optical network investments through comprehensive control and planning applications [3][4] Company Overview - Ribbon Communications provides communications software and IP optical networking solutions globally, focusing on modernizing networks for improved competitive positioning [5] - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) matters, providing an annual Sustainability Report to stakeholders [5]

Core Viewpoint - Ribbon Communications Inc. will report its financial results for Q4 and the full year of 2024 on February 12, 2025, followed by a conference call to discuss the results [1] Group 1: Financial Reporting - The financial results will be released after the market closes on February 12, 2025 [1] - A conference call will be held at 4:30 p.m. ET to discuss the financial results with the financial community [1][2] Group 2: Company Overview - Ribbon Communications provides communications software, IP, and optical networking solutions to service providers, enterprises, and critical infrastructure sectors globally [3] - The company focuses on modernizing networks to improve competitive positioning and business outcomes in a data-driven environment [3] - Ribbon offers a comprehensive portfolio that includes software-centric solutions, cloud-native offerings, security, analytics tools, and networking solutions for 5G [3] - The company is committed to Environmental, Social, and Governance (ESG) matters and publishes an annual Sustainability Report [3]

Facilitates high-speed, scalable, and cost-effective data transfer PLANO, Texas, Dec. 11, 2024 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), which helps many of the world's largest service providers, enterprises and critical infrastructure operators modernize and protect their networks with its state-of-the-art real time communications technology and IP optical networking solutions, announced that Diabolocom has selected Ribbon's high density Data Center Interconnect (DCI) solution. The solutio ...