#USA #Plano #financial results #Ribbon Communications #Q1 2025

Ribbon Communications Inc. Reports First Quarter 2025 Financial Results

Ribbon Communications Inc. (Nasdaq: RBBN), a prominent name in real-time communications technology and IP optical networking solutions, recently shared its financial results for the first quarter of 2025. The company, known for serving major service providers, enterprises, and critical infrastructure operators globally, reported a revenue of $181 million, slightly edging up from $180 million in the same quarter last year.

Financial Highlights

The first quarter figures reveal a murky yet cautiously optimistic landscape for Ribbon. Key financial metrics include:

• - GAAP Gross Margin: 45.4%, down from 51.2% in Q1 2024.
• - Non-GAAP Gross Margin: 48.6%, compared to 55.1% last year.
• - GAAP Operating Loss: $(20) million, compared to $(13) million in the prior year.
• - Non-GAAP Adjusted EBITDA: $6 million versus $12 million from the previous year.

Despite a slight increase in revenues, the drop in gross margins signals challenges the company must navigate. Bruce McClelland, the President and CEO, attributed these results to delays in key federal and enterprise deals that affected the overall sales outcomes during this period. However, he maintains an optimistic outlook for the first half of 2025, projecting a sales increase of 5-8% year-over-year, driven by robust demand from service providers.

Increasing Demand and Backlog

Ribbon noted an impressive 35% rise in backlog compared to the same point last year, reflecting growing demand in network modernization efforts. Sales directed toward service providers rose by over 10% year-on-year, indicating a strong push toward network upgrades and enhanced services. The anticipation is that key contracts that delayed revenue recognition in Q1 are set to materialize in the second quarter, adding to the overall health of the company.

Business Developments

On a broader scale, Ribbon Communications is actively advancing towards next-generation networks. Recent developments include:

• - Upgrades for EENet, the Estonian Education and Research Network.
• - Expansion of their router portfolio, focusing on innovative, cost-efficient solutions.
• - Collaborations with leading firms like Converge to apply AI-enabled transmission technologies.

The company also demonstrated its capabilities at the recent OFC event, unveiling AI-driven innovations that promise to reshape optical networking. As they forge ahead, Ribbon looks to solidify its position as a key player in the telecommunications landscape.

Future Outlook

For the upcoming second quarter of 2025, demands remain high, with expectations of revenues spanning from $210 million to $220 million. Non-GAAP gross margins are forecasted to stabilize between 53% and 53.5%. The adjusted EBITDA for this period is projected to range between $28 million and $32 million, a substantial uptick in profitability compared to the previous quarter.

Event Participation

Ribbon Communications will also participate in key industry conferences, engaging stakeholders and sharing insights on technological advancements. Notable events include the 20th Annual Needham Technology, Media, and Consumer 1x1 Conference on May 13, 2025, and B. Riley Securities 25th Annual Institutional Investor Conference from May 21-22, 2025.

Conclusion

In conclusion, while Ribbon Communications faces certain operational challenges reflected in their quarterly figures, the anticipation of significant business developments and strong market demand set the stage for a promising year ahead. Investors and stakeholders will be keeping a close watch as the company transitions into the second quarter, hoping to showcase a robust recovery and growth trajectory.