Robust Profitability Exceeds Expectancies
Cloud & Edge Income Grew 11% YoY and 16% QoQ

PLANO, Texas , Oct. 23, 2024 /PRNewswire/ — Ribbon Communications Inc. (Nasdaq: RBBN), an international supplier of actual era communications era and IP seeing networking answers to lots of the international’s biggest carrier suppliers, enterprises, and demanding infrastructure operators to modernize and give protection to their networks, these days introduced its monetary effects for the 3rd quarter of 2024.

Income for the 3rd quarter of 2024 used to be $210 million, in comparison to $203 million for the 3rd quarter of 2023 and $193 million for the second one quarter of 2024. GAAP Loss from Operations used to be ($1 million) month Non-GAAP Adjusted EBITDA advanced to $30 million, or 14% of gross sales, within the 3rd quarter 2024. GAAP and Non-GAAP Rude Margins had been sturdy at 52% and 55%, respectively.

“I am very pleased with our financial performance in the third quarter with overall sales growing 3.5% year over year, led by strong growth in our Cloud & Edge secure communications business. Gross Margin exceeded expectations with a positive mix of product sales and good execution from our Professional Services team, resulting in profitability at the high end of our guidance range,” said Bruce McClelland, President and Important Govt Officer of Ribbon Communications.

Mr. McClelland added, “We expect this momentum to continue into the fourth quarter and into 2025 as we continue to ramp voice modernization programs with Verizon and multiple other carriers, execute on new awards with U.S. Federal Defense agencies, and to grow the U.S. rural broadband segment. Our guidance for the fourth quarter projects year-over-year sales growth of 8% at the midpoint, reflecting all of these trends along with seasonal strength in Enterprise.”

“I am very excited to be joining Ribbon at this inflection point in the business and look forward to applying my telecom experience at Verizon and Vodafone to the supplier side of the ecosystem. Ribbon plays an important role in the implementation and support of strategic communication services across many of the largest and most sensitive networks in the world and has a great opportunity to substantially grow its presence and generate shareholder value,” stated John Townsend, Important Monetary Officer of Ribbon Communications efficient November 1, 2024.

Trade Outlook²  
For the fourth quarter of 2024, the Corporate expects sequential expansion in either one of our companies with earnings in a dimension of $235 million to $255 million. Non-GAAP rude margin is projected in a dimension of 55.5% to 56%. Adjusted EBITDA is projected in a dimension of $46 million to $52 million.

The Corporate’s outlook is in keeping with flow indications for its trade, that are topic to switch.

Nearest Convention Agenda

• November 19, 2024: 18^th Annual Needham Safety, Networking, and Communications Convention

About Ribbon
Ribbon Communications (Nasdaq: RBBN) delivers communications application, IP and seeing networking answers to carrier suppliers, enterprises and demanding infrastructure sectors globally. We have interaction deeply with our consumers, serving to them modernize their networks for advanced aggressive positioning and trade results in these days’s subtle, always-on and data-hungry international. Our cutting edge, end-to-end answers portfolio delivers extraordinary scale, efficiency, and agility, together with core to edge software-centric answers, cloud-native offer, modern safety and analytics gear, together with IP and seeing networking answers for 5G and broadband web. We conserve a willing center of attention 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 seek advice from rbbn.com.

Impressive Knowledge Relating to Ahead-Taking a look Statements
This let go incorporates “forward-looking statements” inside the that means of the U.S. Non-public Securities Litigation Reform Employment of 1995, that are topic to numerous dangers and uncertainties.  All statements alternative than statements of historic details contained on this let go, together with with out limitation, statements in regards to the Corporate’s projected monetary effects for the fourth quarter of 2024 and past; marketplace percentage expansion; will increase in shareholder worth; plans and targets for presen 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 presen product building and production and the predicted advantages therefrom, are forward-looking statements. With out restricting the foregoing, the phrases “anticipates”, “believes”, “could”, “estimates”, “expects”, “expectations”, “intends”, “may”, “plans”, “projects” and alternative homogeneous language, whether or not within the unfavourable or agreed, are supposed to spot forward-looking statements, despite the fact that no longer all forward-looking statements comprise those figuring out phrases.

Ahead-looking statements are in keeping with the Corporate’s flow expectancies and guesses relating to its trade, the financial system and alternative presen situations. As a result of forward-looking statements relate to the presen, they’re topic to inherent uncertainties, dangers and adjustments in cases which can be unknown and/or tricky to are expecting and that can motive our unedited effects, efficiency or achievements to be materially other from the ones expressed or implied by way of the forward-looking statements. Such dangers and uncertainties come with, however don’t seem to be restricted to, unpredictable fluctuations in quarterly earnings and running effects; the have an effect on of restructuring and cost-containment actions; will increase in price lists, business restrictions or taxes at the Corporate’s merchandise; provide chain disruptions because of trait availability and/or geopolitical instabilities and disputes (together with the ones connected to the wars in Israel and Ukraine); the closure, on a short lived foundation, of the Corporate’s workplaces or the ones of the Corporate’s word of honour producer in Israel on account of the battle and the have an effect on of army call-ups of the Corporate’s staff in Israel; subject material litigation; the have an effect on of fluctuations in rates of interest; subject material cybersecurity and knowledge intrusion incidents, together with any safety breaches make happen the robbery, switch, or unauthorized disclosure of shopper, worker, or Corporate knowledge; the Corporate’s skill to conform to acceptable home and overseas knowledge safety and privateness rules, rules and era platform regulations or alternative tasks connected to records non-public and safety; failure to compete effectively towards telecommunications apparatus and networking corporations; failure to develop the Corporate’s buyer bottom or generate routine trade from present consumers; credit score dangers; the timing of shopper buying selections and the Corporate’s popularity of revenues; macroeconomic situations, together with inflation; the power to evolve to speedy technological and marketplace adjustments; the power to generate sure returns at the Corporate’s analysis and building; the power to offer protection to Corporate highbrow detail rights and procure important licenses; the power to conserve spouse, reseller, distribution and dealer aid and provide relationships; the opportunity of defects within the Corporate’s merchandise; dangers connected to the phrases of the Corporate’s credit score oath; upper dangers in global operations and markets; foreign money fluctuations; unanticipated averse adjustments in prison, regulatory or tax rules; presen accounting pronouncements or adjustments within the Corporate’s accounting insurance policies; and/or failure or circumvention of the Corporate’s controls and procedures. We subsequently warning you towards depending on any of those forward-looking statements.

Those elements don’t seem to be supposed to be an all-encompassing checklist of dangers and uncertainties that can impact the Corporate’s trade and effects from operations. Backup knowledge relating to those and alternative elements will also be discovered within the Corporate’s experiences filed with the Securities and Change Fee, together with, with out limitation, its Method 10-Okay for the while ended December 31, 2023. Any forward-looking commentary made by way of the Corporate on this let go speaks best as of the age on which this let go used to be first issued. The Corporate undertakes incorrect legal responsibility to replace any forward-looking commentary publicly or another way, whether or not on account of brandnew knowledge, presen traits or another way, except for as required by way 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 whole efficiency of its trade, making running selections, making plans and forecasting presen sessions, and figuring out bills underneath reimbursement 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 presen sessions. The Corporate’s annual monetary plan is ready on a non-GAAP foundation and is licensed by way of its board of administrators. As well as, budgeting and forecasting for earnings and bills are carried out on a non-GAAP foundation, and unedited effects on a non-GAAP foundation are assessed towards the once a year monetary plan. The Corporate defines proceeding operations as the continuing result of its trade adjusted for positive bills and credit, as described under. The Corporate believes that offering non-GAAP knowledge to traders lets them view the Corporate’s monetary leads to the best way its control perspectives them and is helping traders to higher perceive the Corporate’s core monetary and running efficiency and assessment the efficacy of the method and knowledge old by way of its control to judge and measure such efficiency.

Time the Corporate’s control makes use of non-GAAP monetary measures as gear to toughen its working out of positive facets of the Corporate’s monetary efficiency, control does no longer imagine those measures to be an alternative to, or superb to, GAAP measures. As well as, the Corporate’s shows of those measures is probably not related to in a similar fashion titled measures old by way of alternative corporations. Those non-GAAP monetary measures will have to no longer be regarded as possible choices for, or in isolation from, the monetary knowledge ready and offered based on GAAP. Traders are cautioned that there are subject material boundaries related to the usefulness of non-GAAP monetary measures. Specifically, lots of the changes to the Corporate’s monetary measures replicate the exclusion of things which can be routine and might be mirrored in its monetary effects for the foreseeable presen.

Retain-Primarily based Repayment
The expense connected to stock-based awards is normally no longer controllable within the non permanent and will range considerably in keeping with the timing, measurement and nature of awards granted. The Corporate believes that presenting non-GAAP running effects that exclude stock-based reimbursement supplies traders with visibility and perception into its control’s mode of study and its core running efficiency.

Amortization of Obtained Generation (together with application licenses); Amortization of Obtained Intangible Property
Amortization quantities are inconsistent in frequency and quantity and are considerably impacted by way of the timing and measurement of acquisitions. Amortization of bought era is reported one at a time inside Price of earnings and Amortization of bought intangible property is reported one at a time inside Working bills. This stuff are reported jointly as Amortization of bought intangible property within the accompanying reconciliations of non-GAAP and GAAP monetary measures. The Corporate believes that apart from non-cash amortization of those intangible property facilitates the comparability of its monetary effects to its historic running effects and to alternative corporations in its trade as though the bought intangible property have been advanced internally instead than bought.

Litigation Prices
In reference to positive ongoing litigation the place Ribbon is the defendant (as described in Word 26 to the Corporate’s Consolidated Monetary Statements incorporated in its Annual Record on Method 10-Okay for the while ended December 31, 2023), the Corporate has incurred litigation prices starting in 2023. Additionally, on October 14, 2024, a agreement in theory used to be reached on this kind of prison issues and the Corporate gathered the $5 million agreement within the 3rd quarter of 2024. Those prices are incorporated as a trait of normal and administrative expense. The Corporate believes that such prices don’t seem to be a part of its core trade or ongoing operations, are unplanned, and normally don’t seem to be inside its keep an eye on. Accordingly, the Corporate believes that apart from litigation prices connected to those explicit prison issues facilitates the comparability of the Corporate’s monetary effects to its historic running effects and to alternative corporations in its trade.

Acquisition-, Disposal- and Integration-Indistinguishable
The Corporate considers positive acquisition-, disposal- and integration-related prices to be unrelated to the natural proceeding operations of the Corporate and its bought companies. Such prices are normally no longer related to assessing or estimating the long-term efficiency of the bought 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 corporations and permits control and traders to imagine the continuing operations of the trade each with and with out such bills.

Restructuring and Indistinguishable
The Corporate has recorded restructuring and connected expense to streamline operations and shed running prices by way of terminating and consolidating positive amenities and decreasing its international staff. The Corporate believes that apart from restructuring and connected expense facilitates the comparability of its monetary effects to its historic running effects and to alternative corporations in its trade, as there aren’t any presen earnings streams or alternative advantages related to those prices.

Most popular Retain and Warrant Legal responsibility Mark-to-Marketplace Adjustment
The Corporate recorded changes to the truthful worth of its Form A Most popular Retain and Warrants to buy stocks of the Corporate’s familiar inventory in Alternative (expense) source of revenue, internet. Either one of those tools had been issued in March 2023 in reference to the Corporate’s non-public placement and feature been categorised as liabilities and marked to marketplace each and every reporting length till the Form A Most popular Retain used to be totally redeemed on June 25, 2024. The Warrant legal responsibility residue remarkable and can proceed to be marked to marketplace each and every reporting length. The Corporate excluded those beneficial properties and losses from the alternate within the truthful worth of those liabilities as it believes that such beneficial properties or losses weren’t a part of its core trade or ongoing operations.

Tax Impact of Non-GAAP Changes
The Non-GAAP source of revenue tax provision is gifted in keeping with an estimated tax charge carried out towards forecasted annual non-GAAP source of revenue. The Non-GAAP source of revenue tax provision assumes incorrect to be had internet running losses or valuation allowances for the U.S. on account of reporting vital cumulative non-GAAP source of revenue over the life a number of years. The Corporate is reporting its non-GAAP quarterly source of revenue taxes by way of computing an annual charge for the Corporate and making use of that unmarried charge (instead than a couple of charges by way of jurisdiction) to its consolidated quarterly effects. The Corporate expects that this system will grant a constant charge right through the while and make allowance traders to higher perceive the have an effect on of source of revenue taxes on its effects. Because of the method carried out 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 study and assess its efficiency. The Corporate calculates Adjusted EBITDA by way of apart from from source of revenue (loss) from operations: depreciation; stock-based reimbursement; amortization of bought intangible property; positive litigation prices; acquisition-, disposal- and integration-related expense; and restructuring and connected expense. Normally, 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 old by way of the making an investment public for comparative and valuation functions. The Corporate discloses this metric to aid and facilitate discussion with analysis analysts and traders. Alternative corporations might calculate Adjusted EBITDA another way than the Corporate does, restricting its importance as a comparative measure.

Convention Name Main points:
Convention cry to talk about the Corporate’s monetary effects for the 3rd quarter ended September 30, 2024.

While: Wednesday, October 23, 2024
Moment: 4:30 p.m. (ET)

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

Are living (Pay attention-Best) Webcast:
To be had by means of the Investor Relations site, the place a replay can be to be had in a while following the convention cry.

For extra main points on monetary effects, please seek advice from investors.ribboncommunications.com.

Investor Members of the family
+1 (978) 614-8050
[email protected]

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

SOURCE Ribbon Communications Inc.

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