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Access Evolution

Access Evolution

Ribbon Communications Inc. reports third quarter 2021 financial results

Via Ribbon Media Center

Oct 27, 2021

PLANO, Texas -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real-time communications software and IP optical transport solutions to service providers, enterprises, and critical infrastructure sectors, today announced its financial results for the third quarter of 2021.

For the first nine months of 2021, sales increased by 2%, Adjusted EBITDA increased 14% and Non-GAAP diluted earnings per share increased 29% versus 2020 (GAAP loss per share increased by $0.291). Revenue for the third quarter of 2021 was $210 million, impacted by approximately $9.5 million related to supply chain constraints in the quarter.

"We're excited by our recent IP Optical Networks wins and growth prospects as our funnel of opportunities strengthen and benefit from the breadth of existing Ribbon relationships with customers," noted Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "We believe these customer wins, along with accelerating investments in fiber networks and 5G technology, position Ribbon for strong growth in 2022 and beyond. While revenues this quarter were impacted by supply chain constraints, we believe our IP Optical product book to revenue ratio of 1.17 times demonstrates growing demand."

Cash, cash equivalents and restricted cash was $104 million at September 30, 2021, compared with $115 million at June 30, 2021, due in part to an increase of $16 million in accounts receivable. The GAAP Net loss of $59 million in the third quarter of 2021 includes a $56 million non-cash loss associated with the quarterly mark-to-market of our investment in AVCT from the sale of our Kandy Communications business.

"Our Cloud & Edge business continued to generate strong profitability in the quarter, while we expand our investment in our IP Optical Networks portfolio to address the growing tier 1 service provider opportunity pipeline. We believe this investment will generate future returns as we execute on our cross-sell strategy. We remain confident in the Company's direction as we navigate the impact of supply chain constraints," said Mick Lopez, Chief Financial Officer of Ribbon Communications.

Customer and Company Highlights

Solid performance despite supply chain disruptions - 2% year-to-date YoY revenue growth - 14% year-to-date YoY Adj. EBITDA growth - Approximately $9.5 million of shipments delayed to 4Q21 and approximately $3 million in expedited shipping and cost increases in 3Q21

Building momentum with new IP Optical Networks wins and 1.17x product book to revenue in the quarter - Viaero Wireless and Viaero Fiber Networks (top 10 mobile network operator) have selected Ribbon's IP Optical portfolio to upgrade their network from microwave and leased services to fiber connectivity - Dakota Central deployed Apollo and Neptune platform to upgrade their broadband network with increased capacity and 5G backhaul capabilities - Megafon (2nd largest mobile operator in Russia) selected Apollo DWDM platform - Leading Swiss utility provider selected Ribbon products including Muse platform and network slicing technology - Largest European rail network operator implemented Apollo DWDM based backbone - Introduced new version of Muse featuring enhanced traffic optimization capability and zero-touch provisioning

Cloud & Edge continues to generate strong and steady profitability with 32% Adjusted EBITDA margin - Strong demand for Voice over IP Network Transformation solutions growing 25% year-to-date YoY - Higher software mix (68% of product revenue) contributed to segment gross margin of 67% in 3Q21

Business Outlook
The Company's outlook is based on current indications for its business, which are subject to change. For the fourth quarter of 2021, the Company projects revenue of $240 million to $260 million, non-GAAP gross margin of 58%, non-GAAP diluted earnings per share of $0.13 to $0.17, and Adjusted EBITDA of $45 million to $51 million. The current outlook assumes no worsening of conditions related to the COVID-19 pandemic or supply chain disruptions.

Related Topics
  • Access Evolution,
  • Global,
  • North America,
  • Optical,
  • Ribbon Communications,
  • Telecoms Vendors & OEMs,
  • Tracker

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This content extract was originally sourced from an external website (Ribbon Media Center) and is the copyright of the external website owner. TelecomTV is not responsible for the content of external websites. Legal Notices

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