Financial Data and Key Metrics Changes - Ribbon generated revenues of $207 million in Q3 2022, slightly below guidance, with non-GAAP gross margin at 54.5% [14][15] - Non-GAAP adjusted EBITDA was $23 million, and non-GAAP diluted earnings per share was $0.02 [14] - Cash and cash equivalents increased by $18 million to $56 million, primarily due to a successful $50 million capital raise [17] Business Line Data and Key Metrics Changes - The Cloud and Edge business reported Q3 revenue of $125 million, down 12% year-over-year and 9% quarter-over-quarter, while IP Optical networks revenue was $82 million, up 21% year-over-year and 20% quarter-over-quarter [15][16] - Non-GAAP gross margin for the Cloud and Edge segment was 65%, while IP Optical gross margin improved to 38%, a 9 percentage point increase from the previous quarter [15][16] Market Data and Key Metrics Changes - Sales in Europe increased by over 40% compared to Q2, while North America saw over a 15% increase; however, IP Optical sales in India were down about 6% due to component supply issues [6][15] - International customers accounted for 58% of total revenue, reflecting a higher percentage from the increase in IP Optical business [16] Company Strategy and Development Direction - The company is focusing on the large service provider IP routing market and expanding its portfolio of IP routing solutions, with significant bookings for Neptune IP routing products [6][19] - Ribbon plans to implement additional expense reductions and functional integration to improve profitability and cash generation in 2023 [21][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for diversified business and the momentum from the expanded product portfolio, despite caution regarding macroeconomic conditions affecting capital investments [20][32] - The company anticipates revenue growth in both IP routing and optical transport segments in Q4, supported by a strong backlog [19][22] Other Important Information - The company has made significant progress in its pipeline of major Tier 1 mobile and telecom carrier opportunities, with initial purchase orders from several RFPs [7][60] - Ribbon's focus on added value applications received a boost with significant deals in the US and France, leading to a doubling of application revenue [11] Q&A Session Summary Question: Can you provide the book-to-revenue ratio for the overall company? - The book-to-revenue ratio for the overall company was 1.28 [26] Question: What are the demand trends in a macro weakness, especially outside the US? - Demand for IP Optical improved significantly, while Cloud and Edge business faced declines due to previous quarter's strong performance with Verizon [28][29] Question: Is the caution regarding federal and European markets due to macro concerns? - The caution is based on longer decision-making times in the current macro environment, not necessarily due to direct communication from customers [32] Question: How much of the increase in bookings is attributed to Airtel? - Airtel contributed to the growth, but it was not the dominant factor; strength was seen across other regions as well [33] Question: What is the current status of the supply chain? - Supply chain conditions have improved incrementally, but specific component shortages still exist [66][67]

Financial Performance - Total revenue for Q2 2022 was $205.8 million, a decrease of 2.0% compared to $211.2 million in Q2 2021[15] - Net loss for Q2 2022 was $30.2 million, compared to a net income of $23.2 million in Q2 2021[15] - Gross profit for Q2 2022 was $104.6 million, a decline of 11.9% from $118.7 million in Q2 2021[15] - For the six months ended June 30, 2022, Ribbon Communications reported a net loss of $100.155 million, compared to a net loss of $21.446 million for the same period in 2021, indicating a significant increase in losses[27] - The gross profit for the six months ended June 30, 2022, was $182.605 million, down 16.6% from $219.213 million for the same period in 2021[15] Revenue Breakdown - Product revenue for the first half of 2022 was $194.7 million, down 7.8% from $211.0 million in the same period of 2021[15] - Service revenue for the three months ended June 30, 2022, was $93.129 million, down from $98.081 million in the same period of 2021, representing a decline of approximately 5%[126] - Product revenue for the three months ended June 30, 2022, was $112.667 million, slightly down from $113.129 million in the same period of 2021[126] - Revenue from indirect sales through the channel partner program for the three months ended June 30, 2022, was $28.453 million, compared to $27.114 million in 2021, reflecting an increase of 5%[126] - The Cloud and Edge segment generated $137.080 million in revenue for the three months ended June 30, 2022, down from $141.421 million in 2021, a decrease of about 3%[139] Expenses and Costs - Research and development expenses increased to $51.1 million in Q2 2022, up 9.8% from $46.8 million in Q2 2021[15] - The company incurred stock-based compensation expenses of $8.654 million for the six months ended June 30, 2022, compared to $9.850 million for the same period in 2021[27] - The company reported depreciation and amortization expenses of $7.773 million for property and equipment and $30.943 million for intangible assets for the six months ended June 30, 2022[27] Cash and Assets - Cash and cash equivalents were $36.2 million as of June 30, 2022, significantly down from $103.9 million at the end of 2021[13] - Total current assets decreased to $415.4 million as of June 30, 2022, down from $481.0 million at the end of 2021[13] - The total stockholders' equity as of June 30, 2022, was $451.344 million, a decrease from $669.281 million as of June 30, 2021[24] - The company experienced a decrease in fair value of investments amounting to $39.411 million for the six months ended June 30, 2022[27] Liabilities and Debt - Total liabilities decreased to $779.3 million as of June 30, 2022, compared to $820.6 million at the end of 2021[13] - The outstanding balance of the 2020 Credit Facility was $340.5 million as of June 30, 2022[45] - The Company is required to make quarterly principal payments of approximately $10 million in the first year, increasing to $30 million in the last year of the 2020 Credit Facility[80] Future Outlook and Challenges - The company anticipates ongoing challenges due to supply chain disruptions and geopolitical instabilities, which may impact future performance[9] - The company projects it may not maintain compliance with its financial covenants under the 2020 Credit Facility for the quarter ended September 30, 2022, due to market conditions[45] Stock and Shares - The company had a total of 150,459,784 shares outstanding as of June 30, 2022, an increase from 148,895,308 shares at the beginning of the year[27] - The weighted average shares used to compute basic loss per share was 150.2 million for Q2 2022, compared to 147.5 million for Q2 2021[15] Restructuring and Strategic Plans - The company plans to streamline operations through the 2022 Restructuring Plan, which includes workforce reductions and facility consolidations[74] - The company recorded restructuring expenses of $2.90 million and $7.70 million for the three and six months ended June 30, 2022, respectively, as part of its strategic restructuring plan[72]

Ribbon Communications Inc. (NASDAQ:RBBN) Q2 2022 Earnings Conference Call July 27, 2022 4:30 PM ET Company Participants Bita Milanian - Senior Vice President, Global Marketing Bruce McClelland - President and Chief Executive Officer Miguel Lopez - Chief Financial Officer Conference Call Participants Paul Silverstein - Cowen Inc. Tim Savageaux - Northland Capital Markets Dave Kang - B. Riley Securities Operator Greetings, and welcome to Ribbon Communications Second Quarter 2022 Financial Results Conference C ...

Ribbon Communications 1 Second Quarter 2022 Results July 27, 2022 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 and uncertainties. All statements other than statements of historical facts contained in this presentation, including without limitation statements regarding the projected financial results for th ...

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 March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (State or other jurisdiction of incorporation or organization) Delaware 82-1669692 (I.R.S. Employer Identification No.) 6500 Chase Oaks Boulevard, Suite 100, ...

1 Ribbon Communications First Quarter 2022 Results April 27, 2022 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 and uncertainties. All statements other than statements of historical facts contained in this presentation, including without limitation statements regarding the projected financial results for th ...

Ribbon Communications Inc. (NASDAQ:RBBN) Q1 2022 Earnings Conference Call April 27, 2022 4:30 PM ET Company Participants Bita Milanian - SVP, Marketing Bruce McClelland - CEO Mick Lopez - CFO Conference Call Participants Paul Silverstein - Cowen Tim Savageaux - Northland Capital Markets Dave Kang - B. Riley Operator Greetings. Welcome to the Ribbon Communications First Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ 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) (State or other jurisdiction of incorporation or or ...

Ribbon Communications Inc. (NASDAQ:RBBN) Q4 2021 Earnings Conference Call February 16, 2022 4:30 PM ET Company Participants Tom Berry - IR Bruce McClelland - CEO Mick Lopez - CFO Sam Bucci - General Manager, Ribbon's IP Optical Networks Conference Call Participants Tim Savageaux - Northland Capital Markets Operator Greetings, and welcome to the Ribbon Communications Fourth Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session ...

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, 2021 ☐ 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) (State or other jurisdiction of incorpo ...