Core Viewpoint - Ribbon Communications' stock surged despite Q3 sales and earnings results missing analyst expectations, driven by encouraging forward guidance for Q4 [1][2]. Financial Performance - Q3 non-GAAP earnings per share were $0.05, with sales of $210.24 million, falling short of the average analyst estimates of $0.05 per share on sales of approximately $212.1 million [2]. - Revenue increased by roughly 3% year-over-year, supported by growth in the cloud and edge secure communications business [2]. - Adjusted earnings per share remained flat compared to the prior year [2]. Q4 Guidance - Ribbon provided guidance for Q4 sales between $235 million and $255 million, indicating a potential sequential sales growth of approximately 17% and annual growth of about 8% compared to last year's $226 million [3]. - The projected adjusted gross margin for Q4 is between 55.5% and 56%, suggesting a moderate increase from the 55% margin in Q3 [3]. Growth Drivers - The anticipated sales increase is linked to expanding business with Verizon Communications, new contracts with U.S. defense agencies, and growth in the U.S. rural broadband segment [4]. - The better-than-expected guidance has contributed to a positive sentiment among investors [4].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38267 RIBBON COMMUNICATIONS INC. (Exact name of Registrant as specified in its charter) Delaware 82-166969 ...

Ribbon Communications (RBBN) came out with quarterly earnings of $0.05 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this maker of technology for telephone services over internet networks would post earnings of $0.04 per share when it actually produced earnings of $0.05, delivering a surprise of 25%.Over the last four quarters, the company has surpassed cons ...

Revenue Performance - Revenue for Q3 2024 was $210 million, a 3.5% increase year-over-year from $203 million in Q3 2023 and a 9% increase from $193 million in Q2 2024[2]. - The company expects Q4 2024 revenue to be between $235 million and $255 million, projecting an 8% year-over-year sales growth at the midpoint[4]. - Total revenue for the three months ended September 30, 2024, was $210,238 thousand, an increase of 9.0% compared to $192,620 thousand for the previous quarter[19]. - The company projects a revenue midpoint of $245 million for the three months ending December 31, 2024, with a range of +/- $10 million[32]. Profitability Metrics - Non-GAAP Adjusted EBITDA improved to $30 million, representing 14% of sales in Q3 2024, compared to $28 million in Q3 2023[2]. - Adjusted EBITDA for Q4 2024 is projected to be between $46 million and $52 million[4]. - The company reported a GAAP loss from operations of $1 million in Q3 2024, while Non-GAAP net income was $8 million[2]. - Non-GAAP net income for the three months ended September 30, 2024, was $8,486 thousand, compared to $9,355 thousand for the same period in 2023[26]. - Non-GAAP Net Income for the nine months ended September 30, 2024, was $15,911,000, up from $14,276,000 in the same period of 2023[29]. - GAAP Net Loss decreased to $(60,599,000) for the nine months ended September 30, 2024, from $(73,285,000) in the prior year[29]. Margin Analysis - GAAP Gross Margin was 52% and Non-GAAP Gross Margin was 55% in Q3 2024, exceeding expectations due to a positive mix of product sales[2]. - Non-GAAP gross margin for Q4 2024 is projected to be in the range of 55.5% to 56%[4]. - GAAP gross margin for the three months ended September 30, 2024, was 52.1%, up from 50.8% in the previous quarter[26]. - GAAP Gross Margin for the nine months ended September 30, 2024, was 51.4%, an increase from 47.7% for the same period in 2023[29]. - Non-GAAP Gross Margin improved to 55.0% for the nine months ended September 30, 2024, compared to 51.7% in the prior year[29]. Expenses and Costs - Operating expenses totaled $110,544 thousand, an increase from $99,802 thousand in the previous quarter, primarily driven by higher research and development costs[19]. - A $5 million litigation settlement was accrued in Q3 2024, impacting general and administrative expenses[13]. - Research and development expenses for the year were $134,897 thousand, down from $145,309 thousand in the previous year, reflecting cost management efforts[20]. - Total stock-based compensation for the nine months ended September 30, 2024, was $12,061 thousand, down from $16,914 thousand for the same period in 2023[24]. - The company reported a decrease in litigation costs to $10,153,000 for the trailing twelve months ended September 30, 2024, compared to $769,000 in the previous year[30]. Cash and Debt Position - Cash and cash equivalents increased to $37,240 thousand from $26,494 thousand at the end of the previous year[21]. - Long-term debt increased to $332,428 thousand from $197,482 thousand at the end of the previous year, indicating a significant rise in leverage[21]. - The company recorded $44,106 thousand in borrowings under the revolving line of credit during the nine months ended September 30, 2024[22]. - The company reported a net increase in cash and cash equivalents of $13,463 thousand for the nine months ended September 30, 2024[22]. Leadership Changes - The new CFO, John Townsend, will join the company effective November 1, 2024, bringing telecom experience from Verizon and Vodafone[4]. Accumulated Deficit - The company’s accumulated deficit increased to $(1,580,549) thousand as of September 30, 2024, compared to $(1,519,950) thousand at the end of the previous year[21].

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 ...

Core Insights - Ribbon Communications has been selected as the technology provider for the US Department of Defense Information Services Agency (DISA) Soft Switch Backbone (SSBB) RFP awarded to ValidaTek, Inc. This initiative aims to enhance secure and resilient voice communications infrastructure for the US Department of Defense [1][3]. Company Overview - Ribbon Communications specializes in real-time communications technology and IP optical networking solutions, serving major service providers, enterprises, and critical infrastructure operators globally [1][4]. - The company focuses on modernizing networks to improve competitive positioning and business outcomes, offering a comprehensive portfolio that includes software-centric solutions, cloud-native offerings, security tools, and networking solutions for 5G [4]. Industry Context - The defense sector is facing increasing security threats that legacy communication systems cannot adequately address. Ribbon's solutions provide a migration path to modern infrastructure, enhancing capabilities and security in compliance with government mandates [3]. - Ribbon is collaborating with Tyto Athene to support ValidaTek in the global deployment of this technology [3].

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 ...

Core Viewpoint - Ribbon Communications Inc. announces the retirement of Miguel "Mick" Lopez, the Chief Financial Officer, after 40 years in the technology industry, and is in the process of finding a successor [1][2]. Company Overview - Ribbon Communications is a global provider of real-time communications technology and IP optical networking solutions, serving large service providers, enterprises, and critical infrastructure operators [1][3]. - The company focuses on modernizing networks to enhance competitive positioning and business outcomes, offering a comprehensive portfolio that includes software-centric solutions, cloud-native offers, security tools, and networking solutions for 5G [3]. Leadership Transition - Mick Lopez has been with Ribbon since 2020 and has played a crucial role in maturing the company's operations and executing strategic initiatives, including the integration of Ribbon and ECI and refinancing the capital structure [2]. - The company expresses confidence in its future growth and success, attributing a strong foundation to Lopez's leadership during a complex macro environment [2].