PLANO, Texas, July 17, 2025 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global leader of real-time communications technology and IP optical networking solutions, has appointed Fahad Najam as Senior Vice President, Investor Relations and Corporate Strategy, effective immediately. This strategic hire reflects Ribbon's focus on accelerating its transformation and strengthening relationships with key stakeholders across the industry as it helps service providers, enterprises and critical infras ...

Group 1 - Ribbon Communications Inc. will report its financial results for Q2 2025 on July 23, 2025, after market close [1] - A conference call will be held at 4:30 p.m. ET on the same day to discuss the financial results [2] - The company provides secure cloud communications and IP optical networking solutions globally, focusing on modernizing networks for improved business outcomes [3] Group 2 - Ribbon Communications emphasizes its commitment to Environmental, Social, and Governance (ESG) matters, providing an annual Sustainability Report [3]

Company Overview - Ribbon Communications Inc. is a leading supplier of real-time communications technology and IP optical networking solutions, focusing on assisting service providers, enterprises, and critical infrastructure operators in modernizing and safeguarding their networks and services [1][2] - The company offers a comprehensive portfolio of secure cloud communications and IP optical networking solutions, emphasizing cloud-native architectures, automation, analytics tools, and security [2] Upcoming Events - Ribbon Communications executives will participate in the Rosenblatt 5th Annual Technology Virtual Summit Tech Conference on June 10, 2025, and the Northland Capital Virtual Growth Conference on June 25, 2025 [5] - Qualified participants can set up virtual meetings with Ribbon leadership by contacting the company [1]

Core Viewpoint - Ribbon Communications Inc. has announced a share repurchase program of up to $50 million, reflecting the Board's confidence in the company's strategic plan and improved performance, particularly highlighted by record financial results in Q4 2024 [1][2]. Financial Performance - The company reported a 30% increase in earnings for 2024, achieving results at the high end of its original guidance [2]. - Business with US Tier One Service Providers doubled in 2024, supported by a multi-year contract with Verizon for modernizing telecom voice infrastructure [2]. Share Repurchase Program - The share repurchase program will commence on June 5, 2025, and continue through December 31, 2027 [1]. - The program may involve purchases in the open market, privately negotiated transactions, or structured through investment banking institutions, with the timing and amount subject to various factors [2]. Business Strategy and Outlook - The company has seen significant growth in business with Enterprise customers and U.S. Federal agencies [2]. - There is improved visibility in the business with positive book-to-bill ratios and a growing backlog, indicating a focus on driving profitable growth and strong cash flow generation [2]. Company Overview - Ribbon Communications provides secure cloud communications and IP optical networking solutions globally, focusing on modernizing networks for better competitive positioning [3]. - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) matters, offering an annual Sustainability Report to stakeholders [3].

Financial Data and Key Metrics Changes - ADTRAN reported revenue of $247.7 million for Q1 2025, representing a year-over-year increase of $21.6 million or approximately 10% and a sequential increase of $4.9 million or 2% [23][24] - Non-GAAP gross margin was 42.6%, an increase of 146 basis points sequentially and 193 basis points year-over-year [27] - Non-GAAP operating profit was $10.1 million or 4.1% of revenue, compared to a non-GAAP operating profit of $6 million or 2.5% of revenue in Q4 2024 and an operating loss of $10.7 million in Q1 2024 [28] - Free cash flow for Q1 2025 was $22.9 million, a significant turnaround from negative $10.4 million in Q4 2024 [31] Business Line Data and Key Metrics Changes - Access and Aggregation Solutions generated revenue of $89.1 million, accounting for approximately 36% of total revenue, with a 10% year-over-year increase [25] - Optical Networking Solutions revenue was $78.2 million, representing a 4% year-over-year increase [25] - Subscriber Solutions revenue was $80.4 million, increasing 15% year-over-year [25] Market Data and Key Metrics Changes - Non-U.S. revenue accounted for 58% of total revenue, while U.S. revenue comprised 42% [26] - The U.S. market saw a 21% year-over-year increase in optical networking solutions, particularly from enterprise, government, and Internet content provider customers [14] Company Strategy and Development Direction - ADTRAN aims to strengthen its capital structure and enhance financial flexibility through the divestiture of non-core assets [32][36] - The company is focused on expanding its manufacturing capabilities and optimizing its supply chain to adapt to evolving trade policies [10][11] - ADTRAN's product portfolio is positioned to benefit from the growing demand for fiber infrastructure and AI-driven networking solutions [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving market conditions and anticipated continued revenue growth, particularly in Europe [19][36] - The company is actively managing the evolving tariff landscape and believes its supply chain strategy places it in a favorable position relative to peers [21][37] - Management expects revenue for Q2 2025 to range between $247.5 million to $262.5 million, with a non-GAAP operating margin of approximately 4% [38] Other Important Information - ADTRAN's cash and cash equivalents increased to $101.3 million, reflecting a significant improvement in liquidity [31] - The company is exploring options to monetize certain non-core assets, including corporate real estate, to strengthen its financial position [32] Q&A Session Summary Question: Outlook for growth across revenue segments - Management indicated that growth in Access and Aggregation was strong, while Subscriber Solutions faced supply-related challenges but is expected to improve [40][41] Question: Margin pressure in Q2 - Management confirmed that margin pressure is primarily due to operating expenses related to foreign exchange, not gross margin [45][46] Question: Customer pull-ins ahead of tariffs - Management noted minimal evidence of customer pull-ins and emphasized a cautious approach to inventory management [49][50] Question: Macro environment in Europe - Management highlighted strong demand in Europe, with significant opportunities for growth as large carriers expand their deployment plans [51][52] Question: Supply chain and component sourcing - Management confirmed that most supply chain contingencies have been moved outside of China, minimizing tariff impacts [70][72] Question: Competitive positioning and technological advantages - Management believes ADTRAN has a strong product offering, particularly in optical and fiber access solutions, and is well-positioned against competitors [76][78]

Financial Data and Key Metrics Changes - ADTRAN reported revenue of $247.7 million for Q1 2025, representing a year-over-year increase of $21.6 million or approximately 10% and a sequential increase of $4.9 million or 2% [23][24] - Non-GAAP gross margin was 42.6%, an increase of 146 basis points sequentially and 193 basis points year-over-year [26] - Non-GAAP operating profit was $10.1 million or 4.1% of revenue, compared to a non-GAAP operating profit of $6 million or 2.5% of revenue in Q4 2024 [27] - Free cash flow for Q1 2025 was $22.9 million, a significant turnaround from negative $10.4 million in Q4 2024 [30] Business Line Data and Key Metrics Changes - Access and Aggregation Solutions revenue was $89.1 million, approximately 36% of total revenue, increasing 10% year-over-year [24] - Optical Networking Solutions revenue was $78.2 million, or 32% of total revenue, growing 4% year-over-year [24] - Subscriber Solutions revenue was $80.4 million, also 32% of total revenue, increasing 15% year-over-year [24] Market Data and Key Metrics Changes - Non-U.S. revenue accounted for 58% of total revenue, while U.S. revenue comprised 42% [25] - The U.S. market saw a 21% year-over-year increase in optical networking solutions, particularly strong among enterprise, government, and Internet content provider customers [13] Company Strategy and Development Direction - The company aims to strengthen its capital structure and enhance financial flexibility through the divestiture of non-core assets [31][34] - ADTRAN is focusing on expanding its global customer base and enhancing its supply chain to navigate evolving trade policies [10][20] - The company is well-positioned to adapt to tariff impacts due to its diverse supply chain and operational flexibility [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving market conditions and anticipated continued revenue growth driven by strong customer demand for fiber-based broadband services [19][34] - The company expects revenue for Q2 2025 to range between $247.5 million to $262.5 million, with a non-GAAP operating margin between 4% [36] Other Important Information - The company has made significant progress in improving its working capital, with net working capital improving by $19.1 million quarter-over-quarter [28] - ADTRAN's product portfolio is described as stronger than ever, with a focus on fiber infrastructure growth and AI-driven networking [20] Q&A Session Summary Question: Outlook for revenue segments - Management indicated that growth in Access and Aggregation is expected to continue, while Optical and Subscriber segments are also anticipated to improve [38][40] Question: Margin pressure in Q2 - Management confirmed that margin pressure is primarily due to operating expenses influenced by foreign exchange rates, not gross margin [42][43] Question: Customer pull-ins ahead of tariffs - Management noted minimal evidence of customer pull-ins and emphasized a cautious approach to inventory management [46][47] Question: European market dynamics - Management highlighted strong demand in Europe, with significant opportunities for growth as large carriers expand their networks [48][50] Question: Supply chain and component sourcing - Management confirmed that most supply chain contingencies have been moved outside of China, minimizing tariff impacts [71][73] Question: Competitive positioning - Management believes ADTRAN has a technological advantage in fiber access and optical solutions, with a strong focus on software-based products [76][78]

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]

ADTRAN (ADTN) Q4 2024 Earnings Call February 27, 2025 10:30 AM ET Company Participants Peter Schuman - VP - Investor RelationsTom Stanton - Chief Executive Officer and Chairman of the BoardUlrich Dopfer - Senior VP & CFO Conference Call Participants Mike Genovese - Senior Research AnalystChristian Schwab - Senior Research AnalystRyan Koontz - Senior AnalystTim Savageaux - MD & Senior Research AnalystAmira Manai - Equity Research Analyst Operator Good morning. My name is Rob, and I will be your conference op ...