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Ribbon munications (RBBN) - 2024 Q1 - Quarterly Results
RBBNRibbon munications (RBBN)2024-04-24 12:03

Revenue Performance - Revenue for Q1 2024 was 180million,adecreasefrom180 million, a decrease from 186 million in Q1 2023[4] - Total revenue for Q1 2024 was 179.664million,adecreaseof20.6179.664 million, a decrease of 20.6% from 226.401 million in Q4 2023 and a decrease of 3.4% from 186.159millioninQ12023[30]−ThecompanyprojectsQ22024revenuebetween186.159 million in Q1 2023[30] - The company projects Q2 2024 revenue between 200 million and 210million,withNon−GAAPgrossmarginexpectedtobebetween53.5210 million, with Non-GAAP gross margin expected to be between 53.5% and 54.5%[10] - The company projects Q2 2024 revenue to be approximately 205 million, with a range of +/- 5million,andFY2024revenuetobearound5 million, and FY 2024 revenue to be around 855 million, with a range of +/- 15million[44]ProfitabilityMetrics−GAAPLossfromOperationsimprovedby15 million[44] Profitability Metrics - GAAP Loss from Operations improved by 22 million year over year, while Non-GAAP Adjusted EBITDA improved by 14millionto14 million to 12 million[4] - Gross Margin increased by over 700 basis points year over year, exceeding 40% for the IP Optical Networks segment[4][6] - Gross profit for Q1 2024 was 91.955million,resultinginagrossmarginof51.291.955 million, resulting in a gross margin of 51.2%, compared to 53.8% in Q4 2023 and 43.7% in Q1 2023[30] - GAAP Gross margin for Q1 2024 decreased to 51.2% from 53.8% in Q4 2023 and 43.7% in Q1 2023[40] - Non-GAAP Net income for Q1 2024 was a loss of 1.096 million, compared to a profit of 21.572millioninQ42023andalossof21.572 million in Q4 2023 and a loss of 2.827 million in Q1 2023[40] - Non-GAAP Adjusted EBITDA for the trailing twelve months reached 104.634million,upfrom104.634 million, up from 90.509 million in the previous quarter and 70.272millionayearago[42]−AdjustedEBITDAforQ22024isprojectedtobebetween70.272 million a year ago[42] - Adjusted EBITDA for Q2 2024 is projected to be between 20 million and 25million[10]−GAAPincome(loss)fromoperationsforQ22024isprojectedat25 million[10] - GAAP income (loss) from operations for Q2 2024 is projected at (2.5) million, with an expected Non-GAAP outlook of 22.5million[44]OperatingExpensesandCashFlow−Operatingexpensestotaled22.5 million[44] Operating Expenses and Cash Flow - Operating expenses totaled 105.441 million in Q1 2024, slightly up from 105.038millioninQ42023anddownfrom105.038 million in Q4 2023 and down from 116.591 million in Q1 2023[30] - Cash from operations for Q1 2024 was 13million,indicatingsolidorderbookings[9]−Thecompanyreportedanetcashprovidedbyoperatingactivitiesof13 million, indicating solid order bookings[9] - The company reported a net cash provided by operating activities of 13.100 million in Q1 2024, compared to 11.133millioninQ12023[34]−Cashandcashequivalentsincreasedto11.133 million in Q1 2023[34] - Cash and cash equivalents increased to 30.931 million as of March 31, 2024, up from 26.630millionattheendof2023[32]DebtandLiabilities−Currentliabilitiessurgedto26.630 million at the end of 2023[32] Debt and Liabilities - Current liabilities surged to 504.315 million as of March 31, 2024, compared to 341.073millionattheendof2023,primarilyduetothecurrentportionoftermdebt[32]−Thecompanyiscurrentlyseekingtorefinanceitstermdebt,whichisscheduledtomatureonMarch3,2025[32]RegionalPerformance−EMEAregionsalesgrewby24341.073 million at the end of 2023, primarily due to the current portion of term debt[32] - The company is currently seeking to refinance its term debt, which is scheduled to mature on March 3, 2025[32] Regional Performance - EMEA region sales grew by 24% year over year across Service Provider and Critical Infrastructure markets[5] - IP Optical Networks segment sales increased by 9% year over year for the seventh consecutive quarter[6] Stock-Based Compensation and Other Expenses - Stock-based compensation for Q1 2024 totaled 4.522 million, down from 4.892millioninQ42023and4.892 million in Q4 2023 and 5.848 million in Q1 2023[38] - The company incurred litigation costs of 951,000inQ12024,comparedto951,000 in Q1 2024, compared to 538,000 in Q4 2023 and 177,000inQ12023[40]−AmortizationofacquiredintangibleassetsforQ12024was177,000 in Q1 2023[40] - Amortization of acquired intangible assets for Q1 2024 was 13.257 million, slightly up from 13.166millioninQ42023anddownfrom13.166 million in Q4 2023 and down from 14.653 million in Q1 2023[40] Shareholder Metrics - The weighted average shares used to compute GAAP diluted earnings per share increased to 172,428 in Q1 2024 from 171,755 in Q4 2023 and 168,541 in Q1 2023[40]