Financial Data and Key Metrics Changes - In Q1 2025, Ribbon generated revenues of $181 million, an increase of 1% year over year [19] - Non-GAAP gross margin for Q1 was 48.6%, lower than expected due to higher sales in India and increased hardware shipments [19] - Adjusted EBITDA for Q1 was $6 million, a decrease of $6 million year over year, driven by tighter margins across segments [20] Business Line Data and Key Metrics Changes - Cloud and Edge segment revenues in Q1 were $108 million, a 6% year-over-year increase, with product and professional services revenue increasing 17% [22] - IP Optical segment revenues in Q1 were $74 million, a 6% decrease year over year, but up 25% when excluding Eastern Europe [23] - Cloud and Edge non-GAAP gross margins were 62.5%, down 350 basis points from the prior year [22] Market Data and Key Metrics Changes - Sales in India for the IP Optical segment increased 80% year over year, with strong performance in Southeast Asia as well [16][17] - North American sales more than doubled year over year, driven by rural broadband projects and critical infrastructure growth [18] - Service provider sales increased more than 10% year over year, with a significant increase in India [8] Company Strategy and Development Direction - The company is focusing on modernizing voice and data networks, with a strong emphasis on cloud technologies and AI deployments [5][6] - Ribbon expects to see continued growth in its Cloud and Edge business, projecting approximately 20% sales growth in Q2 year over year [27] - The company is investing in new product development, particularly in routing platforms to support TDM elimination use cases [31][32] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand from service providers and enterprises, with a backlog growth of 35% year over year [7] - The company anticipates a strong second quarter with sales projected to grow more than 10% year over year [36] - Management expressed optimism about the future despite uncertainties related to tariffs and trade barriers [35] Other Important Information - Cash from operations was a usage of $4 million in Q1, with a closing cash balance of $74 million [25] - The company expects significant improvement in gross margins in Q2 due to a better product mix [34] Q&A Session Summary Question: Was there any pull-in due to tariff uncertainty? - Management indicated no strong evidence of pull-ins related to tariffs, with bookings consistent across the quarter [39] Question: What are customers saying about potential tariffs? - Management noted that customers have not indicated changes in their strategies or plans due to tariffs, and many service providers do not expect significant impacts [41] Question: Update on AT&T's Neptune ramp? - Management stated they remain a strategic partner to AT&T and expect growth in IP optical in North America [44] Question: How does the company benefit from copper retirement in the U.S.? - Management explained that they provide solutions for both complete copper elimination and maintaining services while transitioning to fiber or IP [48] Question: Growth expectations for Cloud and Edge products? - Management expects Cloud and Edge growth to be approximately 20% year over year in Q2, with IP Optical projected to grow 5% to 10% [51][52] Question: Update on Verizon's revenue expectations? - Management confirmed expectations for Verizon to return to Q4 levels and noted the scaling of service revenue [58][60] Question: Observations on optical transport growth? - Management highlighted strong growth in India and Southeast Asia, with good opportunities stemming from competitive dynamics in the region [67]

[Financial Performance and Outlook](index=1&type=section&id=Financial%20Performance%20and%20Outlook) This section provides an overview of Ribbon Communications' financial results, key business achievements, and future projections [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Ribbon Communications reported Q1 2025 revenue of $181 million, a slight increase from $180 million in Q1 2024, experiencing a GAAP Net Loss of ($26) million and Non-GAAP Adjusted EBITDA of $6 million, with performance impacted by deal timing but supported by strong Service Provider sales and backlog growth Q1 2025 Financial Highlights (vs. Q1 2024) | In millions, except per share amounts | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **GAAP Revenue** | $181 | $180 | | **GAAP Net income (loss)** | $(26) | $(30) | | **Non-GAAP Net income (loss)** | $(5) | $(1) | | **Non-GAAP Adjusted EBITDA** | $6 | $12 | | **GAAP diluted earnings (loss) per share** | $(0.15) | $(0.18) | | **Non-GAAP diluted earnings (loss) per share** | $(0.03) | $(0.01) | - The company projects strong first-half 2025 performance with **5-8% year-over-year revenue growth**, driven by a more than **10% increase in sales to Service Providers**[2](index=2&type=chunk) - Q1 sales were lower than expected due to the delayed timing of two key Federal and Enterprise deals, which are now being fulfilled in Q2[2](index=2&type=chunk) - Bookings were solid, and the company's backlog grew by **35%** compared to the same period last year, enhancing visibility and confidence for the full year[2](index=2&type=chunk) [Business Highlights](index=2&type=section&id=Business%20Highlights) During the quarter, Ribbon secured several key projects and received industry recognition, including a network upgrade for Estonia's EENet, expansion of its high-density router portfolio, and selection by Moratelindo for a 20T capacity link, while also supporting Converge's use of Starlink and showcasing AI-enabled optical innovations - Delivered an open, programmable network upgrade to the Estonian Education and Research Network (EENet)[8](index=8&type=chunk) - Expanded its portfolio of innovative, high-density routers[8](index=8&type=chunk) - Supported Converge's use of Starlink low latency satellite solutions with Ribbon's AI-enabled data transmission technology[8](index=8&type=chunk) - Showcased AI-enabled optical innovation at the OFC conference, with its NPT 2714 Router and Apollo ADM 400/800 receiving recognition[8](index=8&type=chunk) - Selected by Moratelindo for a **20T capacity**, automated management solution for the Jakarta-Singapore link[8](index=8&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Ribbon projects second quarter 2025 revenue between $210 million and $220 million, with Non-GAAP gross margin expected to be 53% to 53.5%, and Adjusted EBITDA forecasted to be in the range of $28 million to $32 million, while full-year 2025 projections remain unchanged Q2 2025 Outlook | Metric | Projected Range | | :--- | :--- | | Revenue | $210M - $220M | | Non-GAAP Gross Margin | 53% - 53.5% | | Adjusted EBITDA | $28M - $32M | - Full Year 2025 projections remain unchanged[5](index=5&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the company's consolidated statements of operations, balance sheets, and cash flows, detailing its financial position and performance [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, total revenue was $181.3 million, slightly up from $179.7 million in the prior-year quarter, with gross margin decreasing to 45.4% from 51.2% YoY, resulting in a loss from operations of ($19.6) million and a net loss of ($26.2) million Key Operational Data (in thousands) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $181,279 | $251,359 | $179,664 | | **Gross Profit** | $82,370 | $140,073 | $91,955 | | **Gross Margin** | 45.4% | 55.7% | 51.2% | | **Income (loss) from operations** | $(19,610) | $33,220 | $(13,486) | | **Net income (loss)** | $(26,227) | $6,364 | $(30,361) | | **Diluted EPS** | $(0.15) | $0.04 | $(0.18) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Ribbon had total assets of $1.137 billion, a slight decrease from $1.163 billion at the end of 2024, with cash and cash equivalents at $71.2 million, total liabilities of $755.7 million, and total stockholders' equity of $381.8 million Key Balance Sheet Data (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $71,243 | $87,770 | | **Total current assets** | $425,063 | $463,662 | | **Total assets** | $1,137,477 | $1,162,554 | | **Total current liabilities** | $305,180 | $328,873 | | **Total liabilities** | $755,662 | $757,933 | | **Total stockholders' equity** | $381,815 | $404,621 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, the company experienced a net cash outflow from operating activities of ($3.5) million, a significant shift from a $13.1 million inflow in Q1 2024, with increased net cash used in investing activities and financing activities, resulting in a total decrease in cash of ($16.7) million Cash Flow Summary (in thousands) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(3,535) | $13,100 | | Net cash used in investing activities | $(12,149) | $(2,663) | | Net cash used in financing activities | $(1,812) | $(5,843) | | **Net (decrease) increase in cash** | **$(16,665)** | **$4,301** | [Non-GAAP Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) This section explains the company's use of non-GAAP financial measures and provides detailed reconciliations to their GAAP equivalents [Discussion of Non-GAAP Financial Measures](index=4&type=section&id=Discussion%20of%20Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures to assess its core operational performance, plan future periods, and for compensation programs, believing these measures provide better insight by excluding certain recurring and non-recurring items, serving as supplemental rather than substitute figures for GAAP measures - Management uses non-GAAP measures to analyze core business performance, make operating decisions, and plan for the future, as the company's annual financial plan is prepared on a non-GAAP basis[14](index=14&type=chunk) - Key adjustments to GAAP figures include excluding expenses for: - Stock-based compensation[16](index=16&type=chunk) - Amortization of acquired technology and intangible assets[17](index=17&type=chunk) - Certain litigation costs[18](index=18&type=chunk) - Restructuring and related expenses[18](index=18&type=chunk) - Adjusted EBITDA is a key non-GAAP metric calculated by excluding depreciation, stock-based compensation, amortization of acquired intangible assets, certain litigation costs, and restructuring expenses from income (loss) from operations[24](index=24&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20and%20GAAP%20Financial%20Measures) In Q1 2025, Ribbon's Non-GAAP Gross Margin was 48.6% compared to a GAAP Gross Margin of 45.4%, with the GAAP Net Loss of ($26.2) million adjusted to a Non-GAAP Net Loss of ($4.6) million, and the GAAP Operating Loss of ($19.6) million reconciled to a Non-GAAP Adjusted EBITDA of $5.8 million Q1 2025 Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (in thousands) | Description | Amount | | :--- | :--- | | **GAAP Net income (loss)** | **$(26,227)** | | Stock-based compensation | $4,298 | | Amortization of intangible assets | $11,543 | | Litigation costs | $800 | | Restructuring and related | $5,341 | | Preferred stock and warrant liability mark-to-market adjustment | $(1,735) | | Tax effect of non-GAAP adjustments | $1,401 | | **Non-GAAP Net income (loss)** | **$(4,579)** | Q1 2025 Reconciliation of GAAP Operating Loss to Non-GAAP Adjusted EBITDA (in thousands) | Description | Amount | | :--- | :--- | | **GAAP Income (loss) from operations** | **$(19,610)** | | Depreciation | $3,469 | | Stock-based compensation | $4,298 | | Amortization of intangible assets | $11,543 | | Litigation costs | $800 | | Restructuring and related | $5,341 | | **Non-GAAP Adjusted EBITDA** | **$5,841** | Reconciliation of Outlook for Q2 2025 (Midpoint, $ millions) | Metric | GAAP Outlook | Adjustments | Non-GAAP Outlook | | :--- | :--- | :--- | :--- | | **Gross Margin** | 50.65% | +2.60% | 53.25% | | **Adjusted EBITDA** | $9.3 | +$20.7 | $30.0 |

Core Insights - Ribbon Communications Inc. reported a 35% increase in backlog year-over-year, driven by growing demand from service providers [1] - The company expects a strong first half of 2025, with sales projected to rise by 5-8% year-over-year despite a revenue reduction in Eastern Europe [2] - Ribbon's first quarter 2025 results were impacted by the timing of two key Federal and Enterprise deals, which are expected to contribute to the second quarter [2] Financial Highlights - First quarter 2025 GAAP revenue was $181 million, slightly up from $180 million in the same quarter of 2024 [6] - GAAP net loss for the first quarter was $26 million, an improvement from a loss of $30 million in the first quarter of 2024 [6] - Non-GAAP adjusted EBITDA for the first quarter was $6 million, down from $12 million in the same quarter of 2024 [6] Business Outlook - For the second quarter of 2025, the company projects revenue between $210 million and $220 million, with a non-GAAP gross margin expected to be between 53% and 53.5% [3] - Full-year 2025 projections remain unchanged, indicating confidence in the company's business outlook [3] Operational Performance - The gross margin for the first quarter of 2025 was 45.4%, down from 51.2% in the first quarter of 2024 [6] - The company reported a GAAP operating loss of $20 million for the first quarter, compared to a loss of $13 million in the same quarter of 2024 [6] - The weighted average shares outstanding for diluted earnings per share increased to 180 million in the first quarter of 2025 from 175 million in the same quarter of 2024 [6]

Moratelindo is gaining unparalleled performance and efficiency by leveraging Ribbon's advanced 5nm- 140Gbaud optical transport solutions, with 25 800G links for 20T capacity and Muse Multilayer Automation Platform, which helps providers maximize the value of IP Optical network investments through comprehensive control, analysis, design, and planning applications. "Moratelindo plays a critical role in ensuring connectivity for people and businesses across Indonesia, and we're pleased to extend our collaborat ...

Core Viewpoint - Ribbon Communications Inc. will report its financial results for Q1 2025 on April 29, 2025, followed by a conference call to discuss the results [1]. Group 1: Financial Reporting - The financial results for the first quarter of 2025 will be released after market close on April 29, 2025 [1]. - A conference call with the financial community will take place at 4:30 p.m. ET on the same day to discuss the results [1]. Group 2: Conference Call Details - The conference call will have a domestic dial-in number of 877-407-2991 and an international dial-in number of 201-389-0925 [2]. - An instant telephone access option and a live webcast will be available via the Investor Relations website, with a replay accessible shortly after the call [2]. Group 3: Company Overview - Ribbon Communications provides secure cloud communications and IP optical networking solutions to service providers, enterprises, and critical infrastructure sectors globally [3]. - The company focuses on modernizing networks for improved competitive positioning and business outcomes, leveraging cloud-native architectures, automation, and analytics tools [3]. - Ribbon maintains a commitment to Environmental, Social, and Governance (ESG) matters, offering an annual Sustainability Report to stakeholders [3].

"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 ...

Core Insights - Converge ICT Solutions Inc. is enhancing its fiber network with advanced data transmission technology from Ribbon Communications to meet the increasing demand for high-speed and reliable connectivity [1][5][6] - The collaboration will utilize Ribbon's Muse Multilayer Automation Platform to optimize Converge's network performance and resource management [2][4] - The implementation of a 5 nanometer - 140Gbaud transmission chipset will increase Converge's network capacity to 1.2 Terabits per second [5][6] Company Overview - Converge ICT Solutions is the fastest-growing fixed broadband service provider in the Philippines, operating an end-to-end pure fiber internet network [8][9] - The company boasts over 705,000 kilometers of fiber optic assets, making it one of the most extensive fiber networks in the country [9] - Converge offers a range of services including broadband, integrated data center, and network solutions [8] Technology and Innovation - The new technology will support next-generation services such as high-speed broadband, cloud applications, and enterprise solutions [6] - Ribbon Communications is recognized for its real-time communications technology and IP optical networking solutions, aiding service providers in modernizing their networks [7][10]

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].