Ribbon Communications Inc. Reports Fourth Quarter and Full Year 2022 Financial Results
Feb 16, 2023
Plano, TX – 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 fourth quarter and full year 2022.
Revenue for the fourth quarter of 2022 was $234 million, compared to $231 million for the fourth quarter of 2021 and $207 million for the third quarter of 2022. Revenue for full year 2022 was $820 million, compared to $845 million for full year 2021.
“I am very pleased to report solid financial results for the fourth quarter 2022 - the best quarter of the year for Ribbon. Our overall sales were above the mid-point of our guidance, and adjusted EBITDA grew 25% quarter-over-quarter and 11% year-over-year. Product and Service Bookings were once again very good and exceeded the higher sales level in the quarter,” stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications.
McClelland continued, “The highlight of our quarter includes continued improvement in our IP Optical business, with increased sales across all regions and multiple new customer wins. In particular, momentum continued in our IP Routing portfolio with sales increasing 34% year-over-year, which is expected to only get stronger as we roll out new product offerings this year. In addition, the Cloud and Edge segment continued to post positive results, with strong Enterprise and SBC sales in the quarter.”
“We are very encouraged with revenue and bookings momentum to close out the year and with the cash generation of the company during the quarter. Operating expenses were $5 million lower in the fourth quarter of 2022 compared to the fourth quarter of the prior year, and we expect to continue reducing our operating costs in 2023,” said Mick Lopez, Chief Financial Officer of Ribbon Communications.
For 2023, the Company expects to build on the momentum from the second half of 2022, with a stronger portfolio and market presence, and to follow a normal seasonal pattern with the business accelerating as the year progresses.
For the first quarter of 2023, the Company projects revenue of $180 million to $190 million, up 7% year-over-year at the mid-point, constrained by a small number of specific supply chain shortages. Non-GAAP gross margin is projected in a range of 46% to 48%, lower than typical as a result of higher start-up costs associated with several new customer wins and product mix. Adjusted EBITDA is projected in a range of ($6) million to $1 million.
For the full year 2023, the Company projects revenue of $840 million to $870 million, up 4% year-over-year at the mid-point, non-GAAP gross margin of 53% to 54%, and Adjusted EBITDA of $95 million to $110 million, up 60% year-over-year at the mid-point. The Company’s outlook is based on current indications for its business, which are subject to change.
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.
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