Financial Performance - Ribbon Communications reported third-quarter 2024 revenue of $210 million, a 3.5% increase year-over-year from $203 million in Q3 2023 and a 8.8% increase from $193 million in Q2 2024 [1][2] - The company achieved a Non-GAAP Adjusted EBITDA of $30 million, representing 14% of sales, while GAAP Loss from Operations was ($1 million) [1][2] - Gross margins were strong, with GAAP Gross Margin at 52% and Non-GAAP Gross Margin at 55% [1][2] Business Outlook - For Q4 2024, the company expects revenue to range between $235 million and $255 million, projecting an 8% year-over-year sales growth at the midpoint [3][2] - Non-GAAP gross margin is anticipated to be between 55.5% and 56%, with Adjusted EBITDA projected to be between $46 million and $52 million [3] Strategic Initiatives - The CEO highlighted ongoing voice modernization programs with Verizon and other carriers, as well as growth in the U.S. rural broadband segment as key drivers for future growth [2][3] - The company is also focusing on executing new awards with U.S. Federal Defense agencies, which is expected to contribute positively to revenue [2] Financial Highlights - The company reported a GAAP net loss of $13 million for the third quarter, compared to a loss of $14 million in Q3 2023 [8] - Non-GAAP net income for the third quarter was $8 million, slightly down from $9 million in the same period last year [8] - The weighted average shares outstanding increased to 175 million from 171 million year-over-year [8] Cash Flow and Liquidity - Cash and cash equivalents at the end of Q3 2024 were $37.2 million, up from $26.5 million at the end of Q2 2024 [25] - The company reported net cash used in operating activities of $11.5 million for the third quarter [27]

Award recognizes success in hitting key sustainability goals including meeting emissions reduction target 7 years early PLANO, Texas, Oct. 16, 2024 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real time communications technology and IP optical networking solutions to many of the world's largest service providers, enterprises, and critical infrastructure operators to modernize and protect their networks, announced that it has been named to Newsweek's 2025 list of America's ...

Seamless transition delivers increased security and capabilities PLANO, Texas, Oct. 14, 2024 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real time communications technology and IP optical networking solutions to many of the world's largest service providers, enterprises, and critical infrastructure operators to modernize and protect their networks, today announced that it has been selected as the technology provider for the US Department of Defense Information Services Ag ...

Demo of 800G ZR+ with interoperable PCS highlights the path to dramatically lower transport TCO from metro through long haul PLANO, Texas and PARIS, Oct. 8, 2024 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real time communications technology and IP optical networking solutions to many of the world's largest service providers, enterprises, and critical infrastructure operators to modernize and protect their networks, announced the industry's first demonstration of a compac ...

PLANO, Texas, Oct. 3, 2024 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real time communications technology and IP optical networking solutions to many of the world's largest service providers, enterprises, and critical infrastructure operators to modernize and protect their networks, today announced the appointment of John Townsend as Executive Vice President and Chief Financial Officer effective November 1, 2024. Mr. Townsend will succeed Miguel "Mick" Lopez who Ribbon p ...

The Zacks Communication-Network Software industry players are suffering from challenging macroeconomic conditions and steep inflation. Small and medium businesses have deferred capital spending on infrastructure buildout due to higher interest rates and inflation, which does not bode well for industry players. Nevertheless, industry players like Weave Communications (WEAV) and Ribbon Communications (RBBN) are gaining from the ongoing digitalization efforts that include a shift to cloud computing and the rap ...

PLANO, Texas, Aug. 13, 2024 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real time communications technology and IP optical networking solutions to many of the world's largest service providers, enterprises, and critical infrastructure operators to modernize and protect their networks, today announced that Miguel "Mick" Lopez, Executive Vice President, Chief Financial Officer, intends to retire after 40 years in the technology industry. Ribbon has engaged an executive sear ...

Meets key environmental milestone ahead of schedule PLANO, Texas, Aug. 12, 2024 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real time communications technology and IP optical networking solutions to many of the world's largest service providers, enterprises, and critical infrastructure operators to modernize and protect their networks, today released its 2023 sustainability report. The report highlights Ribbon's continued efforts in achieving its sustainability initiative ...

(Mark One) Delaware 82-1669692 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.0001 RBBN The Nasdaq Global Select Market If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $193 million, a decrease of 8.5% year-over-year and below the guidance range [49][88] - Non-GAAP gross margin was 54.4%, a 240 basis point improvement over the prior year [88] - Adjusted EBITDA for the quarter was $22 million, slightly down from the prior year but up $10 million from Q1 [62][56] - Year-to-date profitability increased 65% on an adjusted EBITDA basis compared to 2023 [56] Business Line Data and Key Metrics Changes - IP Optical revenue in Q2 was $82 million, a 4% decrease year-over-year, primarily due to lower sales in Eastern Europe [63][82] - Cloud & Edge revenue was $111 million, a decrease of 12% year-over-year, mainly due to a delayed U.S. Federal defense deal [90] - Non-GAAP adjusted EBITDA for IP Optical was negative $4 million, showing significant improvement year-over-year [91] Market Data and Key Metrics Changes - Sales to India in the first half of 2024 were down approximately 20% year-over-year, but significant growth is expected in the second half [50] - EMEA region, excluding Eastern Europe, saw a 30% year-over-year increase in IP Optical sales [57] - Asia Pacific region outside of India experienced a 32% year-over-year sales increase [57] Company Strategy and Development Direction - The integration of Ribbon and ECI is progressing, creating a strong foundation for growth in 2025 and beyond [4] - The company is focusing on achieving sustainable profitability in the IP Optical business and diversifying sales in enterprise market verticals [71] - Recent industry consolidations, such as the Nokia-Infinera deal, present opportunities for Ribbon to capture market share [54][70] Management's Comments on Operating Environment and Future Outlook - Management expects significant growth in the second half of the year, projecting revenue to increase approximately 25% compared to the first half [66] - The company anticipates a strong second half driven by enterprise and U.S. Federal contracts, with revenue expected to grow more than 50% versus the first half [69] - The suspension of shipments to Eastern Europe is expected to impact revenue by approximately $20 million to $25 million in the second half [28][98] Other Important Information - The company successfully refinanced its credit facility, enhancing its capital structure and liquidity [64][93] - The backlog is currently higher than the total amount shipped in the first half of the year, indicating strong future demand [58] Q&A Session All Questions and Answers Question: What was the impact of Eastern Europe on the second quarter results? - The shortfall from Eastern Europe was approximately $20 million to $25 million, which is expected to be offset by other tailwinds in the second half [102] Question: Can you elaborate on the Verizon and Brightspeed deals? - The Verizon program is off to a great start, and the company expects significant growth from the Brightspeed partnership as they modernize their infrastructure [95][70] Question: How does the company plan to maintain R&D while managing expenses? - The company is focused on sustaining engineering and optimizing costs while ensuring that R&D remains a priority for future growth [104]