Ribbon Communications Inc. Reports Third Quarter 2024 Financial Results

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]