Ribbon Communications Inc. RBBN recently deployed Emergency Calling Services (ECS) for the Japan division of multinational telecom firm Colt Technology Services Group Limited. The move reinforced the long-term business relationship between the two entities and enabled Colt Japan to augment its service capabilities across the country.
Per Japan’s telecom regulations, carriers that offer voice calling services are mandated to provide ECS facilities to users. These allow customers to have direct access to Japan’s Police, Fire Department and Coast Guard in emergency situations to avert any casualties and physical damage to properties and lives.
To date, Colt Japan had been routing these services through third-party network. With the deal with Ribbon Communications, Colt Japan would be fully equipped to provide ECS through its own network. In addition, the carrier implemented the VoIP (Voice over Internet Protocol) technology to seamlessly migrate other PSTN (Public Switched telephone Network) based services to IP.
Notably, few days back, Ribbon Communications had reported lackluster third-quarter 2019 results with year-over-year decrease in earnings and revenues due to a challenging macroeconomic environment. Adjusted earnings were 13 cents per share compared with 18 cents in the year-ago quarter and missed the Zacks Consensus Estimate by 7 cents. GAAP revenues were down from $152 million to $138 million, missing the consensus estimate of $151 million.
The stock has lost 34.4% in the past year compared with the industry’s decline of 20.4%.
It remains to be seen if such coveted deals could buoy the performance of this technology provider for telephone services over Internet networks in the near future.
Ribbon Communication currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the broader industry include Maxar Technologies Ltd. MAXR, Gogo Inc. GOGO and Verizon Communications Inc. VZ, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Maxar delivered an average positive earnings surprise of 119.2% in the trailing four quarters.
GOGO delivered an average positive earnings surprise of 39.1% in the trailing four quarters, beating estimates on each occasion.
Verizon has long-term earnings growth expectation of 4.2%. It delivered an average positive earnings surprise of 2.2% in the trailing four quarters, beating estimates on each occasion.
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