Ribbon munications (RBBN) - 2022 Q2 - Quarterly Report

Financial Performance - Total revenue for Q2 2022 was $205.8 million, a decrease of 2.0$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$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$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$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$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]