"We believe we are uniquely positioned to support Tier 1 and Tier 2 service providers worldwide with IP optical solutions that keep pace with the continued exponential growth in traffic and meet the unique requirements of emerging technologies, including AI," said Sam Bucci, Ribbon's Executive Vice President and Chief Operating Officer. "Additionally, our low-code solutions help enable citizen developers to efficiently and effectively manage their networks." Ribbon will highlight several of its offerings in ...

MANILA, Philippines, March 28, 2025 /PRNewswire/ -- Leading fiber broadband and technology provider Converge ICT Solutions Inc. (PSE: CNVRG) is enhancing its nationwide fiber network with an advanced data transmission technology from NASDAQ-listed Ribbon Communications Inc. (NASDAQ: RBBN) to strengthen its network in response to the growing need for high-speed, low-latency, and reliable connectivity. Converge will leverage Ribbon's advanced Muse Multilayer Automation Platform (MAP) designed to maximize the ...

Acquisitions and Market Position - The company completed several acquisitions since its formation in 2017, including Edgewater Networks Inc. and ECI Telecom Group Ltd., to enhance its product offerings and market position[13] - The company completed several acquisitions since its formation in 2017, including Edgewater Networks Inc., Anova Data, Inc., and ECI Telecom Group Ltd., to expand its product offerings[13] Growth Opportunities - The company anticipates significant growth opportunities due to the modernization of communications service provider networks, driven by the need to reduce total cost of ownership and migrate to new software platforms[14] - The deployment of 5G technology is expected to unlock new revenue-generating applications, with mobile carriers investing heavily in infrastructure upgrades[18] - Government funding programs in the U.S. are expected to provide billions of dollars to enhance broadband connectivity, creating opportunities for service providers to grow revenues[21] - The critical infrastructure market is under pressure to modernize communications networks, presenting significant opportunities for the company[26] - The company expects to grow its IP Optical Networks market share in North America by leveraging its extensive deployment base and federal funding programs aimed at improving internet access to underserved markets[33] Product Development and Innovation - Significant R&D investments have been made in the IP Optical product portfolio to capitalize on the multi-year 5G opportunity, focusing on access and aggregation layers of the network[33] - The transition towards software-centric and cloud-native offerings is expected to improve profitability and competitiveness, enhancing the recurring revenue portion of the business[33] - The Cloud and Edge segment provides secure and reliable software and hardware products for VoIP communications, with a focus on cloud-native solutions deployable across various infrastructures[34] - The Apollo product line offers programmable Optical Transport Network capabilities, supporting transmission speeds from 400 Gbps to 1.2 Tbps, enhancing efficiency and capacity of fiber facilities[42] - Neptune product line provides high-performance switching and routing solutions optimized for 5G deployments, supporting various access network technologies and ensuring service level agreements[44] - The Muse SDN multi-layer Domain Orchestrator enables lifecycle management and automation for Neptune IP and Apollo Optical networks, facilitating integration into wider ecosystems[44] - The company is focusing on developing Enterprise Session Border Controllers and Edge products to support secure cloud-based UC&C applications, enhancing service assurance and visibility[38] Employee and Organizational Insights - The company has 3,052 employees worldwide, with 39% in Asia, 28% in North America, 30% in EMEA, and 3% in LATAM[71] - The voluntary turnover rate in 2024 was 6.6%, up from 5.9% in 2023[74] - In 2024, the company hired 236 employees globally, with 29% of hires coming from employee referrals[75] - The company’s employee recognition program distributed approximately 3,000 awards in 2024, with 49% of employees recognized for their contributions[77] - In 2024, over 40% of employees globally donated more than 5,500 hours to support charitable organizations[83] - The average time to fill a position in 2024 was 38 days[75] - In 2024, the company delivered more than 19 live training webinars and approximately 13 training hours per employee across its workforce[78] Corporate Strategy and Governance - The company aims to integrate its operations and enhance efficiencies through the "Ribbon 3.0" program, reflecting its commitment to operational excellence[28] - The company maintains a strong commitment to ethical business practices and corporate governance, ensuring compliance with national and international laws[88] - The company has published a strategy based on an ESG materiality study to enhance its environmental performance and social benefits[86] - The company is committed to reducing environmental impact through responsible product design and compliance with international sustainability standards[87] Market Trends and Competitive Landscape - The shift to cloud-based communications has accelerated due to the COVID-19 pandemic, increasing demand for secure and scalable communication platforms[25] - The market for Cloud and Edge products is shifting towards cloud-native software network function virtualization, creating opportunities for differentiation and market share gain[37] - The competitive landscape is shifting towards open solutions and software-defined networking, presenting opportunities for the company to increase market share against traditional competitors[45] - The company is experiencing elevated inventory levels due to supply chain disruptions, but has implemented redesign efforts to improve product availability and reduce costs[56] - The ongoing unrest in the Middle East has caused some material supply chain disruptions, but the company has managed to avoid significant impacts through established business continuity processes[57] Customer Engagement and Revenue - Verizon Communications Inc. accounted for approximately 14% of the company's revenue in the year ended December 31, 2024, with the top five customers representing about 34% of total revenue[32] - The company has experienced quarterly fluctuations in customer activity, typically seeing increased order volume in Q4 due to higher spending by service provider customers[90] - The company continues to seek industry partnerships to enhance its solution offerings and address customer needs effectively[33] - The company aims to help improve the quality of life and the health of the planet through its expertise in transforming networks and enhancing security[85]

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]