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Bruce McClelland pegs great hope on gaining momentum in India

Bruce W McClelland; President, CEO & Director; Ribbon Communications Inc. at the earnings call, while declaring his company’s Q1 2023 results was upbeat on his company’s activities in India.

McClelland remarked, “Our business in India continues to gain momentum as we execute on previously announced wins with Bharti Airtel in both optical transport and IP routing as well as growth with other operators in the region, such as Tata Teleservices. Sales in India increased 18% year-over-year as we scale production of the new optical and IP products, and we had a strong quarter for new bookings, primarily for our new products. We expect this region to continue to grow given the long-awaited investment in deploying 5G technology and the continued exponential growth in Internet traffic.

Our increased presence in scale in India also benefits our Cloud Edge business with several voice infrastructure deals closing in the first quarter and a good funnel of enterprise opportunities. As we indicated last quarter, we’re having good success in the EMEA region with sales increasing 10% year-over-year across a variety of critical infrastructure, telecom and defense customers this quarter. Bookings were particularly strong in the region as we closed a new 5-year agreement for products and services with our largest defense industry customer. The contract included a large $45 million order, a portion of which is included in the quarter’s bookings total and scheduled for delivery in 2023. The remainder of the order will book in future periods as it’s scheduled for delivery or completion.

India has just been almost on fire for us, very strong demand, good bookings momentum and good revenue increase year-over-year. And that’s with the large — obviously, the very large mobile operators in that region. So, so far so good this year.

Replying to the question, “do you expect any of the major India carriers to make it on the 10% customer list in the quarter as we move through the year,” McClelland replied, “Yes. From a 10% customer perspective, we may end up a little short of that on the full year, but we’ll have to see how the second half plays out.

This is a combination of several of the new routing platforms, the XTR 2000 series, it includes the new cell site router product we’re deploying with Bharti in India and also includes the enhancements that we’ve made to the optical portfolio around long-haul transport. So those 3 categories contributed over 20% of the bookings in the first quarter, which I think was maybe a little stronger than I expected, but certainly directionally, where we thought it was going to be, obviously, given the investment we’ve made around enhancing the portfolio.”

CT Bureau

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