Ribbon Communications Inc (RBBN) Reports Q3 2023 Financial Results
Ribbon Communications Inc (NASDAQ:RBBN) announced its Q3 2023 financial results with a revenue of $203 million, compared to $207 million for Q3 2022 and $211 million for Q2 2023.
GAAP Income from Operations improved by $4 million and Non-GAAP Adjusted EBITDA increased 21% year over year.
IP Optical Networks sales have increased 14% year-to-date and were up 6% in the third quarter.
Company projects Q4 2023 revenue of $230 million to $240 million, with Non-GAAP gross margin in a range of 54.5% to 55.5%, and Adjusted EBITDA in a range of $40 million to $46 million.
Ribbon Communications Inc (NASDAQ:RBBN), a global provider of real-time communications technology and IP optical networking solutions, released its financial results for the third quarter of 2023 on October 25, 2023. The company reported a revenue of $203 million for Q3 2023, compared to $207 million for the same quarter in 2022 and $211 million for the second quarter of 2023.
Financial Performance
Ribbon Communications Inc (NASDAQ:RBBN) delivered solid earnings in the third quarter with GAAP Income from Operations improving by $4 million and Non-GAAP Adjusted EBITDA increasing 21% year over year. IP Optical Networks sales have increased 14% year-to-date and were up 6% in the third quarter with approximately 50% sales growth in India, the U.S., and Japan. However, IP Optical Networks sales in the EMEA region were approximately 20% lower in the quarter.
Ribbon delivered solid earnings in the third quarter as GAAP Income from Operations improved by $4 million and Non-GAAP Adjusted EBITDA increased 21% year over year. IP Optical Networks sales have increased 14% year-to-date and were up 6% in the third quarter with approximately 50% sales growth in India, the U.S. and Japan. However, IP Optical Networks sales in the EMEA region were approximately 20% lower in the quarter. Strategically, we went into live commercial service with our Neptune IP Router at a U.S. Tier One Service Provider this quarter. Cloud & Edge sales were lower primarily due to reduced spending from U.S. Tier One Service Providers, offset by additional voice modernization sales to U.S. Federal agencies, stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications.
Financial Highlights
For the third quarter of 2023, Ribbon Communications Inc (NASDAQ:RBBN) reported a GAAP Revenue of $203 million, a GAAP Net loss of $14 million, and a Non-GAAP Net income of $9 million. The Non-GAAP Adjusted EBITDA stood at $28 million. The GAAP diluted loss per share was $0.08, while the Non-GAAP diluted earnings per share was $0.05.
Business Outlook
For the fourth quarter of 2023, Ribbon Communications Inc (NASDAQ:RBBN) projects revenue of $230 million to $240 million, Non-GAAP gross margin is projected in a range of 54.5% to 55.5%, and Adjusted EBITDA is projected in a range of $40 million to $46 million. The current outlook assumes no worsening of geopolitical conditions and related sanctions activities in regions that the Company operates in, including the ongoing wars in Israel and Ukraine.
Explore the complete 8-K earnings release (here) from Ribbon Communications Inc for further details.
This article first appeared on GuruFocus.
