Ribbon Communications Inc. Reports First Quarter 2025 Financial Results

Core Insights - Ribbon Communications Inc. reported a 35% increase in backlog year-over-year, driven by growing demand from service providers [1] - The company expects a strong first half of 2025, with sales projected to rise by 5-8% year-over-year despite a revenue reduction in Eastern Europe [2] - Ribbon's first quarter 2025 results were impacted by the timing of two key Federal and Enterprise deals, which are expected to contribute to the second quarter [2] Financial Highlights - First quarter 2025 GAAP revenue was $181 million, slightly up from $180 million in the same quarter of 2024 [6] - GAAP net loss for the first quarter was $26 million, an improvement from a loss of $30 million in the first quarter of 2024 [6] - Non-GAAP adjusted EBITDA for the first quarter was $6 million, down from $12 million in the same quarter of 2024 [6] Business Outlook - For the second quarter of 2025, the company projects revenue between $210 million and $220 million, with a non-GAAP gross margin expected to be between 53% and 53.5% [3] - Full-year 2025 projections remain unchanged, indicating confidence in the company's business outlook [3] Operational Performance - The gross margin for the first quarter of 2025 was 45.4%, down from 51.2% in the first quarter of 2024 [6] - The company reported a GAAP operating loss of $20 million for the first quarter, compared to a loss of $13 million in the same quarter of 2024 [6] - The weighted average shares outstanding for diluted earnings per share increased to 180 million in the first quarter of 2025 from 175 million in the same quarter of 2024 [6]