In This Article:
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Overall Sales: $210 million, increasing 3.5% year over year and 9% quarter over quarter.
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Non-GAAP Gross Margin: 55%, exceeded expectations.
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Non-GAAP Operating Expenses: $90 million, up slightly year over year.
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Adjusted EBITDA: $30 million for the quarter; trailing 12-month adjusted EBITDA is $106 million.
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Cloud and Edge Revenue: $128 million, up 11% year over year and 16% quarter over quarter.
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Cloud and Edge Non-GAAP Gross Margin: Near an all-time high at 68%.
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Cloud and Edge Non-GAAP Adjusted EBITDA: $38 million, 30% of revenue for the quarter.
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IP Optical Revenue: $82 million, down 6% year over year and flat to the second quarter.
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IP Optical Non-GAAP Gross Margin: 36%.
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IP Optical Non-GAAP Adjusted EBITDA: Negative $8 million.
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Cash from Operations: Negative $15 million.
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Cash and Cash Equivalents: $40 million at the end of the quarter.
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Interest Expense: $10 million for the quarter.
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Fourth Quarter Revenue Guidance: $235 million to $255 million.
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Fourth Quarter Non-GAAP Gross Margin Guidance: 55.5% to 56%.
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Fourth Quarter Non-GAAP Adjusted EBITDA Guidance: $46 million to $52 million.
Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ribbon Communications Inc (NASDAQ:RBBN) reported a 3.5% year-over-year increase in overall sales for the third quarter, with a 9% increase quarter-over-quarter, driven by growth in the cloud and edge business.
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The company achieved a non-GAAP gross margin of 55%, exceeding expectations and reaching the high end of guidance.
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Sales in the federal and defense industry grew by 60% year-to-date compared to 2023, accounting for 13% of overall sales.
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The cloud and edge business saw a significant increase, with revenue up 11% year-over-year and 16% quarter-over-quarter, and a non-GAAP gross margin near an all-time high at 68%.
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Ribbon Communications Inc (NASDAQ:RBBN) has a strong pipeline of opportunities, particularly in the US, with a book-to-bill ratio of over 1.4 times, indicating strong demand and future growth potential.
Negative Points
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IP optical network sales were lower year-over-year due to the suspension of product sales to Eastern Europe.
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Cash from operations was negative $15 million for the quarter, with cash and cash equivalents ending at $40 million, lower than anticipated.
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Non-GAAP adjusted EBITDA for the IP optical segment was negative $8 million, down $4 million from the prior year.
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Interest expense in the quarter was $10 million, reflecting the new credit facility, which impacts profitability.
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The company faced delays in accounts receivable collections, which were expected at the end of September but were delayed into October, affecting cash flow.