Ribbon Communications reports first quarter 2021 financial results
Apr 28, 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 first quarter of 2021.
Revenue for the first quarter of 2021 was $193 million, compared to $158 million for the first quarter of 2020, an increase of 22%. This includes a $37 million year over year revenue increase related to acquisition of ECI Telecom Group Ltd. ("ECI"), which closed on March 3, 2020.
"We are off to a good start in 2021 with first quarter results in line with our expectations, and we are particularly pleased with our Adjusted EBITDA exceeding our guidance range and earnings per share at the high end of the range," noted Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "We look forward to building on this success as we continue to realize the benefits of our broader portfolio and robust customer relationships."
Customer and Company Highlights
Strong performance in Cloud & Edge segment with Non-GAAP Adjusted EBITDA up 191% year over year to $28 million - Core SBC grew 12% year over year - Support for newly introduced Microsoft Operator Connect - Continued strong demand for VoIP Network Transformation products; expansion orders from three Tier 1 carriers totaling more than $40 million
Organic IP Optical year over year revenue growth of 22% - Significant RFP and proof of concept activity across all regions including several large mobile carrier opportunities - 13 new customer wins in multiple market verticals including four US regional telcos - Introduced two new IP transport access products that address the needs of the 5G cell site router and critical infrastructure markets - Strong interest and evaluation of new 400G ZR+ solution with commercial availability planned for early in the third quarter
The Company's outlook is based on current indications for its business, which are subject to change. For the second quarter of 2021, the Company projects revenue of $215 million to $225 million, non-GAAP gross margin of 56% to 57%, non-GAAP diluted earnings per share of $0.09 to $0.11, and Adjusted EBITDA of $30 million to $34 million. For the full year 2021, guidance remains unchanged at revenue of $925 million to $945 million, non-GAAP gross margin of 55% to 56%, non-GAAP diluted earnings per share of $0.49 to $0.54, and Adjusted EBITDA of $145 million to $155 million. The current outlook assumes no worsening of conditions related to the COVID-19 pandemic.
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