Ribbon munications (RBBN)2022-10-27 01:24Financial Data and Key Metrics Changes - Ribbon generated revenues of 23 million, and non-GAAP diluted earnings per share was 18 million to 50 million capital raise [17] Business Line Data and Key Metrics Changes - The Cloud and Edge business reported Q3 revenue of 82 million, up 21% year-over-year and 20% quarter-over-quarter [15][16] - Non-GAAP gross margin for the Cloud and Edge segment was 65%, while IP Optical gross margin improved to 38%, a 9 percentage point increase from the previous quarter [15][16] Market Data and Key Metrics Changes - Sales in Europe increased by over 40% compared to Q2, while North America saw over a 15% increase; however, IP Optical sales in India were down about 6% due to component supply issues [6][15] - International customers accounted for 58% of total revenue, reflecting a higher percentage from the increase in IP Optical business [16] Company Strategy and Development Direction - The company is focusing on the large service provider IP routing market and expanding its portfolio of IP routing solutions, with significant bookings for Neptune IP routing products [6][19] - Ribbon plans to implement additional expense reductions and functional integration to improve profitability and cash generation in 2023 [21][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for diversified business and the momentum from the expanded product portfolio, despite caution regarding macroeconomic conditions affecting capital investments [20][32] - The company anticipates revenue growth in both IP routing and optical transport segments in Q4, supported by a strong backlog [19][22] Other Important Information - The company has made significant progress in its pipeline of major Tier 1 mobile and telecom carrier opportunities, with initial purchase orders from several RFPs [7][60] - Ribbon's focus on added value applications received a boost with significant deals in the US and France, leading to a doubling of application revenue [11] Q&A Session Summary Question: Can you provide the book-to-revenue ratio for the overall company? - The book-to-revenue ratio for the overall company was 1.28 [26] Question: What are the demand trends in a macro weakness, especially outside the US? - Demand for IP Optical improved significantly, while Cloud and Edge business faced declines due to previous quarter's strong performance with Verizon [28][29] Question: Is the caution regarding federal and European markets due to macro concerns? - The caution is based on longer decision-making times in the current macro environment, not necessarily due to direct communication from customers [32] Question: How much of the increase in bookings is attributed to Airtel? - Airtel contributed to the growth, but it was not the dominant factor; strength was seen across other regions as well [33] Question: What is the current status of the supply chain? - Supply chain conditions have improved incrementally, but specific component shortages still exist [66][67]