International Circuit

Ribbon Communications Inc. reports second quarter 2023 financial results

July 27, 2023

Ribbon Communications Inc., a global provider of real time communications technology and IP optical networking solutions to many of the world’s largest service providers, enterprises, and critical infrastructure operators to modernize and protect their networks, today announced its financial results for the second quarter of 2023.

Revenue for the second quarter of 2023 was $211 million, compared to $206 million for the second quarter of 2022 and $186 million for the first quarter of 2023.

“Ribbon delivered solid results in the second quarter with sequential and year-over-year growth in both revenue and earnings. IP Optical Networks continued to build momentum with sales increasing 24% versus the same period in 2022, extending the trend of double-digit growth for the fourth consecutive quarter. Shipments to India continued to grow, and our cross-sell strategy resulted in strong growth in North America and Japan. Sales of our Cloud & Edge communications products to Enterprise customers grew 94% year over year, including a new strategic U.S. Federal agency win supporting modernization of critical voice communications,” stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. “We continue to anticipate a stronger second half and are maintaining our full year guidance range for 2023, but, due to the overall projected mix, Adjusted EBITDA is expected to be towards the lower half of our $95-110M range, a significant 50% improvement vs. 2022.”

Financial Highlights¹

	Three months ended		Six months ended
	June 30,		June 30,
In millions, except per share amounts	2023	2022	2023	2022
GAAP Revenue	$ 211	$ 206	$ 397	$ 379
GAAP Net income (loss)	$ (21)	$ (30)	$ (60)	$ (100)
Non-GAAP Net income (loss)	$ 8	$ 10	$ 5	$ (2)
Non-GAAP Adjusted EBITDA	$ 23	$ 21	$ 20	$ 12
GAAP diluted earnings (loss) per share	$ (0.13)	$ (0.20)	$ (0.35)	$ (0.67)
Non-GAAP diluted earnings (loss) per share	$ 0.04	$ 0.06	$ 0.03	$ (0.01)
Weighted average shares outstanding basic	170	150	169	150
Weighted average shares outstanding diluted	175	154	175	154

Cash and cash equivalents totaled $35 million at June 30, 2023.

“Favorable mix and execution on our strategy to improve efficiency and reduce operating expenses contributed to earnings at the high end of our guidance range for the second quarter. This sets the stage for a strong second half as we expect margins to benefit from higher sales and to exceed our targeted expense reductions for the year,” said Mick Lopez, Chief Financial Officer of Ribbon Communications.

CT Bureau