7% Revenue Growth Year Over Year
IP Optical Networks Sales up 13% and Cloud & Edge Enterprise up 62%
Continued Strong Bookings Momentum
PLANO, Texas -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real time communications technology and IP optical networking solutions to many of the world's largest service providers, enterprises, and critical infrastructure operators to modernize and protect their networks, today announced its financial results for the first quarter of 2023.
Revenue for the first quarter of 2023 was $186 million, compared to $173 million for the first quarter of 2022.
"I'm pleased to report that we generated 7% revenue growth year over year, with Cloud & Edge sales up 4% on the strength of 62% higher sales to Enterprises, coupled with IP Optical Networks sales up 13%. This is our third quarter in a row of double-digit year-over-year revenue growth in our IP Optical Networks segment. Bookings in the quarter for this segment were 1.6x led by robust demand in India and EMEA," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. McClelland continued, "Based on the solid start to the year and bookings strength, and the implementation of previously announced spending reductions, we are maintaining our positive outlook and guidance for 2023."
Cash, cash equivalents, and restricted cash totaled $46 million at March 31, 2023.
"In the first quarter of 2023, we made progress on two of our key financial objectives. First, we enhanced our capital structure with an $80 million debt repayment funded by $25 million of cash on hand and the proceeds from a $55 million private placement of preferred stock and warrants. Second, we continued to execute on our plan to improve efficiency with operating expenses 4% lower year over year, and we believe we are on track to meet or exceed our targeted expense reductions for 2023," said Mick Lopez, Chief Financial Officer of Ribbon Communications.
Business Outlook1
For the second quarter of 2023, the Company projects revenue of $205 million to $215 million, Non-GAAP gross margin is projected in a range of 50.5% to 51.5%, and Adjusted EBITDA is projected in a range of $17 million to $24 million.
1 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules.
