Web source of revenue larger 21% and Adjusted EBITDA up 65% in 1H 2024 YoY

Endured development in rude margin and decrease running bills

Be expecting sturdy 2d part according to expansion from U.S. Tier 1, Rural Broadband, Undertaking, and Republic of India

PLANO, Texas, July 24, 2024 /PRNewswire/ — Ribbon Communications Inc. (Nasdaq: RBBN), an international supplier of actual month communications generation and IP visible networking answers to lots of the international’s biggest carrier suppliers, enterprises, and significant infrastructure operators to modernize and give protection to their networks, as of late introduced its monetary effects for the second one quarter of 2024.

Earnings for the second one quarter of 2024 used to be $193 million, in comparison to $211 for the second one quarter of 2023 and $180 million for the primary quarter of 2024. First part 2024 GAAP Loss from Operations advanced $26 million 12 months over 12 months to ($15 million), and Non-GAAP Adjusted EBITDA advanced $13 million, or 65%, to $33 million. GAAP and Non-GAAP Rude Margin for the second one quarter advanced 260 and 240 foundation issues 12 months over 12 months, respectively.

“Earnings increased significantly in the first half of 2024 with Adjusted EBITDA increasing 65% year over year despite lower sales. The improvement in profitability was driven by higher gross margins and lower operating expenses year over year. Revenue in the second quarter was impacted by a large U.S. Federal deal that was delayed to the third quarter. Sales were also lower as we suspended product shipments into Eastern Europe due to the extended war in Ukraine and increased complexities of operating in the region,” said Bruce McClelland, President and Leading Govt Officer of Ribbon Communications.

Mr. McClelland added, “We continue to project a strong second half of 2024 as we ramp the recently announced Verizon Voice Network modernization program and anticipate strong growth in several other areas such as Enterprise, U.S. Rural Broadband, Europe, and India. Recent changes in the competitive landscape also present an opportunity for further share expansion. However, we have adjusted our full year 2024 guidance slightly to reflect a more conservative outlook for the Eastern European region for the rest of the year.”

“During the second quarter of 2024, we completed the refinancing of our capital structure with a $385 million five-year senior secured credit facility that provides us greater liquidity with less restrictions. Our new strategic banking group relationship with HPS Investment Partners, LLC and WhiteHorse Capital Management, LLC will also give us opportunities to support our future growth needs,” stated Mick Lopez, Leading Monetary Officer of Ribbon Communications. “Additionally, we continue to improve our operations, driving a 240 basis point improvement year over year in gross margins and a $4 million reduction in expenses, resulting in the lowest level of operating expenses since the ECI acquisition in 2020.”

Industry Outlook¹   
For the 3rd quarter of 2024, the Corporate expects persisted sequential expansion in either one of our companies with earnings in a length of $205 million to $220 million. Non-GAAP rude margin is projected in a length of 53% to 53.5%. Adjusted EBITDA is projected in a length of $25 million to $30 million.

The Corporate has additionally adjusted full-year 2024 objectives and now expects earnings in a length of $830 million to $850 million, non-GAAP rude margin in a length of 54% to 54.5%, and Adjusted EBITDA in a length of $105 million to $115 million.

The Corporate’s outlook is according to flow indications for its industry, which can be matter to switch.

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About Ribbon
Ribbon Communications (Nasdaq: RBBN) delivers communications application, IP and visible networking answers to carrier suppliers, enterprises and significant infrastructure sectors globally. We have interaction deeply with our consumers, serving to them modernize their networks for advanced aggressive positioning and industry results in as of late’s subtle, always-on and data-hungry international. Our leading edge, end-to-end answers portfolio delivers unprecedented scale, efficiency, and agility, together with core to edge software-centric answers, cloud-native offer, modern safety and analytics gear, at the side of IP and visible networking answers for 5G and broadband web. We conserve a prepared focal point on our constancy to Environmental, Social and Governance (ESG) issues, providing an annual Sustainability Report back to our stakeholders. To be informed extra about Ribbon consult with rbbn.com.

Noteceable Knowledge Relating to Ahead-Having a look Statements 
The guidelines on this let fall incorporates “forward-looking statements” throughout the that means of the U.S. Personal Securities Litigation Reform Business of 1995, which can be matter to a lot of dangers and uncertainties.  All statements alternative than statements of historic details contained on this let fall, together with with out limitation statements in regards to the Corporate’s projected monetary effects for the 3rd quarter of 2024 and past; plans and goals for era operations, together with charge discounts; the have an effect on of the wars in Israel and Ukraine; buyer spending and engagement and momentum; and plans for era product building and production and the anticipated advantages therefrom, are forward-looking statements. With out proscribing the foregoing, the phrases “believes”, “estimates”, “expects”, “expectations”, “intends”, “may”, “plans”, “projects” and alternative related language, are supposed to spot forward-looking statements. 

Ahead-looking statements are according to the Corporate’s flow expectancies and guesses referring to its industry, the financial system and alternative era statuses. As a result of forward-looking statements relate to the era, they’re matter to inherent uncertainties, dangers and adjustments in instances which might be tricky to expect. Original effects might range materially from the ones pondered in those forward-looking statements because of numerous dangers, uncertainties and alternative notable components, together with, amongst others, the results of geopolitical instabilities and wars, together with in Israel and Ukraine (and the have an effect on of sanctions and industry restrictions imposed in consequence thereof); unpredictable fluctuations in quarterly earnings and running effects; will increase in price lists, industry restrictions or taxes at the Corporate’s merchandise; the have an effect on of restructuring and cost-containment actions; operational disruptions at amenities positioned in Israel together with on account of army call-ups of the Corporate’s staff in Israel, closure of the workplaces there or the brief or long-term closure of promise production within the patch; the possible have an effect on of litigation; dangers linked to provide chain disruptions, together with on account of feature availability; dangers as a consequence of upper pursuits charges and persisted inflationary pressures; dangers linked to cybersecurity and information intrusion; failure to compete effectively in opposition to telecommunications apparatus and networking firms; failure to develop the Corporate’s buyer bottom or generate ordinary industry from current consumers; credit score dangers; the timing of purchaser buying choices and the Corporate’s popularity of revenues; macroeconomic statuses, together with inflation; marketplace acceptance of the Corporate’s services and products; fast technological and marketplace alternate; the facility to give protection to Corporate highbrow detail rights and procure essential licenses; the facility to conserve spouse, reseller, distribution and supplier backup and provide relationships; the potential of defects within the Corporate’s merchandise; and foreign money fluctuations.

Those components aren’t supposed to be an all-encompassing checklist of dangers and uncertainties that can have an effect on the Corporate’s industry and effects from operations. Supplementary knowledge referring to those and alternative components may also be discovered within the Corporate’s experiences filed with the Securities and Trade Fee, together with, with out limitation, its Method 10-Ok for the 12 months ended December 31, 2023 and its Method 10-Q for the quarter ended March 31, 2024. In offering forward-looking statements, the Corporate expressly disclaims any legal responsibility to replace those statements publicly or differently, whether or not on account of brandnew knowledge, era occasions or differently, aside from as required by means of legislation.

Discussion of Non-GAAP Monetary Measures
The Corporate’s control makes use of a number of other monetary measures, each GAAP and non-GAAP, in examining and assessing the total efficiency of its industry, making running choices, making plans and forecasting era sessions, and figuring out bills below repayment techniques. The Corporate considers the usefulness of non-GAAP monetary measures useful in assessing the core efficiency of its proceeding operations and when making plans and forecasting era sessions. The Corporate’s annual monetary plan is ready on a non-GAAP foundation and is licensed by means of its board of administrators. As well as, budgeting and forecasting for earnings and bills are performed on a non-GAAP foundation, and unedited effects on a non-GAAP foundation are assessed in opposition to the once a year monetary plan. The Corporate defines proceeding operations as the continued result of its industry adjusted for positive bills and credit, as described underneath. The Corporate believes that offering non-GAAP knowledge to buyers lets them view the Corporate’s monetary leads to the way in which its control perspectives them and is helping buyers to raised perceive the Corporate’s core monetary and running efficiency and overview the efficacy of the method and knowledge impaired by means of its control to guage and measure such efficiency.

Past the Corporate’s control makes use of non-GAAP monetary measures as gear to strengthen its working out of positive sides of the Corporate’s monetary efficiency, control does no longer believe those measures to be an alternative to, or splendid to, GAAP measures. As well as, the Corporate’s displays of those measures might not be similar to in a similar way titled measures impaired by means of alternative firms. Those non-GAAP monetary measures must no longer be regarded as choices for, or in isolation from, the monetary knowledge ready and offered according to GAAP. Traders are cautioned that there are subject material obstacles related to the usefulness of non-GAAP monetary measures. Particularly, lots of the changes to the Corporate’s monetary measures replicate the exclusion of things which might be ordinary and will probably be mirrored in its monetary effects for the foreseeable era.

Book-Primarily based Reimbursement
The expense linked to stock-based awards is in most cases no longer controllable within the momentary and will range considerably according to the timing, measurement and nature of awards granted. The Corporate believes that presenting non-GAAP running effects that exclude stock-based repayment supplies buyers with visibility and perception into its control’s form of study and its core running efficiency.

Amortization of Got Era (together with application licenses); Amortization of Got Intangible Property
Amortization quantities are inconsistent in frequency and quantity and are considerably impacted by means of the timing and measurement of acquisitions. Amortization of got generation is reported one by one inside of Price of earnings and Amortization of got intangible property is reported one by one inside of Working bills. This stuff are reported jointly as Amortization of got intangible property within the accompanying reconciliations of non-GAAP and GAAP monetary measures. The Corporate believes that except for non-cash amortization of those intangible property facilitates the comparability of its monetary effects to its historic running effects and to alternative firms in its business as though the got intangible property have been advanced internally instead than got.

Litigation Prices
In reference to positive ongoing promise litigation the place Ribbon is the defendant (as described in Word 26 to the Corporate’s Consolidated Monetary Statements incorporated in its Annual Document on Method 10-Ok for the 12 months ended December 31, 2023), the Corporate has incurred litigation prices starting in 2023. Those prices are incorporated as a feature of normal and administrative expense. The Corporate believes that such prices aren’t a part of its core industry or ongoing operations, are unplanned and in most cases no longer inside of its keep watch over.  Accordingly, the Corporate believes that except for the litigation prices linked to those explicit prison issues facilitates the comparability of the Corporate’s monetary effects to its historic running effects and to alternative firms in its business.

Acquisition-, Disposal- and Integration-Alike
The Corporate considers positive acquisition-, disposal- and integration-related prices to be unrelated to the natural proceeding operations of the Corporate and its got companies. Such prices are in most cases no longer related to assessing or estimating the long-term efficiency of the got property. The Corporate excludes such acquisition-, disposal- and integration-related prices to permit extra correct comparisons of its monetary effects to its historic operations and the monetary result of much less acquisitive peer firms and lets in control and buyers to believe the continued operations of the industry each with and with out such bills. 

Restructuring and Alike
The Corporate has recorded restructuring and linked expense to streamline operations and leave running prices by means of last and consolidating positive amenities and decreasing its international team of workers. The Corporate believes that except for restructuring and linked expense facilitates the comparability of its monetary effects to its historic running effects and to alternative firms in its business, as there aren’t any era earnings streams or alternative advantages related to those prices. 

Most popular Book and Warrant Legal responsibility Mark-to-Marketplace Adjustment
The Corporate recorded changes to the truthful price of its Order A Most popular Book and Warrants to buy stocks of the Corporate’s familiar inventory in Alternative (expense) source of revenue, web. Either one of those tools have been issued in March 2023 in reference to the Corporate’s non-public placement and feature been categorized as liabilities and marked to marketplace each and every reporting duration till the Order A Most popular Book used to be absolutely redeemed on June 25, 2024. The Warrant legal responsibility residue remarkable and can proceed to be marked to marketplace each and every reporting duration. The Corporate excluded those positive factors and losses from the alternate within the truthful price of those liabilities as it believes that such positive factors or losses weren’t a part of its core industry or ongoing operations.

Tax Impact of Non-GAAP Changes
The Non-GAAP source of revenue tax provision is gifted according to an estimated tax charge implemented in opposition to forecasted annual non-GAAP source of revenue. The Non-GAAP source of revenue tax provision assumes refuse to be had web running losses or valuation allowances for the U.S. on account of reporting important cumulative non-GAAP source of revenue over the era a number of years. The Corporate is reporting its non-GAAP quarterly source of revenue taxes by means of computing an annual charge for the Corporate and making use of that unmarried charge (instead than a couple of charges by means of jurisdiction) to its consolidated quarterly effects. The Corporate expects that this system will grant a constant charge right through the 12 months and make allowance buyers to raised perceive the have an effect on of source of revenue taxes on its effects. Because of the method implemented to its estimated annual tax charge, the Corporate’s estimated tax charge on non-GAAP source of revenue will range from its GAAP tax charge and from its unedited tax liabilities.

Adjusted EBITDA
The Corporate makes use of Adjusted EBITDA as a supplemental measure to check and assess its efficiency. The Corporate calculates Adjusted EBITDA by means of except for from source of revenue (loss) from operations: depreciation; stock-based repayment; amortization of got intangible property; positive litigation prices; acquisition-, disposal- and integration-related expense; and restructuring and linked expense. Generally, the Corporate excludes the bills that it considers to be non-cash and/or no longer part of its ongoing operations. The Corporate might exclude alternative pieces going forward that experience the ones traits. Adjusted EBITDA is a non-GAAP monetary measure this is impaired by means of the making an investment nation for comparative and valuation functions. The Corporate discloses this metric to backup and facilitate discussion with analysis analysts and buyers. Alternative firms might calculate Adjusted EBITDA another way than the Corporate does, proscribing its use as a comparative measure.

Convention Name Main points:
Convention cry to speak about the Corporate’s monetary effects for the second one quarter ended June 30, 2024.

Age: Wednesday, July 24, 2024
Age: 4:30 p.m. (ET)

Dial-In Knowledge:
US/Canada: 877-407-2991
World: 201-389-0925
Immediate Phone Get entry to: Call me™  

A phone playback of the decision will probably be to be had following the convention cry till August 7, 2024 and may also be accessed by means of calling 877-660-6853 or 201-612-7415 for global callers. The reservation quantity for the replay is 13747581.

Are living (Concentrate-Best) Webcast:
To be had by way of the Investor Relations web site, the place a replay may also be to be had in a while following the convention cry.

For extra main points on monetary effects, please consult with investors.ribboncommunications.com.

Investor Family members
+1 (978) 614-8050
[email protected]  

Media Touch
Catherine Berthier
+1 (646) 741-1974
[email protected]  

SOURCE Ribbon Communications Inc.