Ribbon munications (US:RBBN)2024-10-23 20:15Revenue 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].