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Ribbon Communications Inc. Reports Second Quarter 2024 Financial Results

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Net income increased 21% and Adjusted EBITDA up 65% in 1H 2024 YoY

Continued improvement in gross margin and lower operating expenses

Expect strong second half based on growth from U.S. Tier 1, Rural Broadband, Enterprise, and India

PLANO, Texas, July 24, 2024 /PRNewswire/ — Ribbon Communications Inc. (Nasdaq: RBBN), 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 2024.

Revenue for the second quarter of 2024 was $193 million, compared to $211 for the second quarter of 2023 and $180 million for the first quarter of 2024. First half 2024 GAAP Loss from Operations improved $26 million year over year to ($15 million), and Non-GAAP Adjusted EBITDA improved $13 million, or 65%, to $33 million. GAAP and Non-GAAP Gross Margin for the second quarter improved 260 and 240 basis points year over year, respectively.

“Earnings increased significantly in the first half of 2024 with Adjusted EBITDA increasing 65% year over year despite lower sales. The improvement in profitability was driven by higher gross margins and lower operating expenses year over year. Revenue in the second quarter was impacted by a large U.S. Federal deal that was delayed to the third quarter. Sales were also lower as we suspended product shipments into Eastern Europe due to the extended war in Ukraine and increased complexities of operating in the region,” stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications.

Mr. McClelland added, “We continue to project a strong second half of 2024 as we ramp the recently announced Verizon Voice Network modernization program and anticipate strong growth in several other areas such as Enterprise, U.S. Rural Broadband, Europe, and India. Recent changes in the competitive landscape also present an opportunity for further share expansion. However, we have adjusted our full year 2024 guidance slightly to reflect a more conservative outlook for the Eastern European region for the rest of the year.”

Financial Highlights1

Three months ended

Six months ended

June 30,

June 30,

In millions, except per share amounts

2024

2023

2024

2023

GAAP Revenue

$       193

$       211

$       372

$        397

GAAP Net income (loss)

$        (17)

$        (21)

$        (47)

$         (60)

Non-GAAP Net income (loss)

$           9

$           8

$           7

$            5

Non-GAAP Adjusted EBITDA

$         22

$         23

$         33

$          20

GAAP diluted earnings (loss) per share 

$     (0.10)

$     (0.13)

$     (0.27)

$      (0.35)

Non-GAAP diluted earnings (loss) per share

$      0.05

$      0.04

$      0.04

$       0.03

Weighted average shares outstanding basic

174

170

173

169

Weighted average shares outstanding diluted

176

175

176

175

1 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled “Discussion of Non-GAAP Financial Measures” in the attached schedules.

“During the second quarter of 2024, we completed the refinancing of our capital structure with a $385 million five-year senior secured credit facility that provides us greater liquidity with less restrictions. Our new strategic banking group relationship with HPS Investment Partners, LLC and WhiteHorse Capital Management, LLC will also give us opportunities to support our future growth needs,” said Mick Lopez, Chief Financial Officer of Ribbon Communications. “Additionally, we continue to improve our operations, driving a 240 basis point improvement year over year in gross margins and a $4 million reduction in expenses, resulting in the lowest level of operating expenses since the ECI acquisition in 2020.”

Business Outlook1   
For the third quarter of 2024, the Company expects continued sequential growth in both of our businesses with revenue in a range of $205 million to $220 million. Non-GAAP gross margin is projected in a range of 53% to 53.5%. Adjusted EBITDA is projected in a range of $25 million to $30 million.

The Company has also adjusted full-year 2024 targets and now expects revenue in a range of $830 million to $850 million, non-GAAP gross margin in a range of 54% to 54.5%, and Adjusted EBITDA in a range of $105 million to $115 million.

The Company’s outlook is based on current indications for its business, which are subject to change.

1 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled “Discussion of Non-GAAP Financial Measures” in the attached schedules.

Upcoming Conference Schedule

August 27, 2024: Evercore ISI 2024 Semiconductor, IT Hardware & Networking ConferenceAugust 28, 2024: Jefferies Semiconductor, IT Hardware & Communication Technology Summit

About Ribbon
Ribbon Communications (Nasdaq: RBBN) delivers communications software, IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today’s smart, always-on and data-hungry world. Our innovative, end-to-end solutions portfolio delivers unparalleled scale, performance, and agility, including core to edge software-centric solutions, cloud-native offers, leading-edge security and analytics tools, along with IP and optical networking solutions for 5G and broadband internet. We maintain a keen focus on our commitments to Environmental, Social and Governance (ESG) matters, offering an annual Sustainability Report to our stakeholders. To learn more about Ribbon visit rbbn.com.

Important Information Regarding Forward-Looking Statements 
The information in this release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties.  All statements other than statements of historical facts contained in this release, including without limitation statements regarding the Company’s projected financial results for the third quarter of 2024 and beyond; plans and objectives for future operations, including cost reductions; the impact of the wars in Israel and Ukraine; customer spending and engagement and momentum; and plans for future product development and manufacturing and the expected benefits therefrom, are forward-looking statements. Without limiting the foregoing, the words “believes”, “estimates”, “expects”, “expectations”, “intends”, “may”, “plans”, “projects” and other similar language, are intended to identify forward-looking statements. 

Forward-looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated in these forward-looking statements due to various risks, uncertainties and other important factors, including, among others, the effects of geopolitical instabilities and wars, including in Israel and Ukraine (and the impact of sanctions and trade restrictions imposed as a result thereof); unpredictable fluctuations in quarterly revenue and operating results; increases in tariffs, trade restrictions or taxes on the Company’s products; the impact of restructuring and cost-containment activities; operational disruptions at facilities located in Israel including as a result of military call-ups of the Company’s employees in Israel, closure of the offices there or the temporary or long-term closure of contract manufacturing in the region; the potential impact of litigation; risks related to supply chain disruptions, including as a result of component availability; risks resulting from higher interests rates and continued inflationary pressures; risks related to cybersecurity and data intrusion; failure to compete successfully against telecommunications equipment and networking companies; failure to grow the Company’s customer base or generate recurring business from existing customers; credit risks; the timing of customer purchasing decisions and the Company’s recognition of revenues; macroeconomic conditions, including inflation; market acceptance of the Company’s products and services; rapid technological and market change; the ability to protect Company intellectual property rights and obtain necessary licenses; the ability to maintain partner, reseller, distribution and vendor support and supply relationships; the potential for defects in the Company’s products; and currency fluctuations.

These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company’s business and results from operations. Additional information regarding these and other factors can be found in the Company’s reports filed with the Securities and Exchange Commission, including, without limitation, its Form 10-K for the year ended December 31, 2023 and its Form 10-Q for the quarter ended March 31, 2024. In providing forward-looking statements, the Company expressly disclaims any obligation to update these statements publicly or otherwise, whether as a result of new information, future events or otherwise, except as required by law.

Discussion of Non-GAAP Financial Measures
The Company’s management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. The Company considers the use of non-GAAP financial measures helpful in assessing the core performance of its continuing operations and when planning and forecasting future periods. The Company’s annual financial plan is prepared on a non-GAAP basis and is approved by its board of directors. In addition, budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis, and actual results on a non-GAAP basis are assessed against the annual financial plan. The Company defines continuing operations as the ongoing results of its business adjusted for certain expenses and credits, as described below. The Company believes that providing non-GAAP information to investors allows them to view the Company’s financial results in the way its management views them and helps investors to better understand the Company’s core financial and operating performance and evaluate the efficacy of the methodology and information used by its management to evaluate and measure such performance.

While the Company’s management uses non-GAAP financial measures as tools to enhance its understanding of certain aspects of the Company’s financial performance, management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, the Company’s presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In particular, many of the adjustments to the Company’s financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future.

Stock-Based Compensation
The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. The Company believes that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into its management’s method of analysis and its core operating performance.

Amortization of Acquired Technology (including software licenses); Amortization of Acquired Intangible Assets
Amortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Amortization of acquired technology is reported separately within Cost of revenue and Amortization of acquired intangible assets is reported separately within Operating expenses. These items are reported collectively as Amortization of acquired intangible assets in the accompanying reconciliations of non-GAAP and GAAP financial measures. The Company believes that excluding non-cash amortization of these intangible assets facilitates the comparison of its financial results to its historical operating results and to other companies in its industry as if the acquired intangible assets had been developed internally rather than acquired.

Litigation Costs
In connection with certain ongoing contract litigation where Ribbon is the defendant (as described in Note 26 to the Company’s Consolidated Financial Statements included in its Annual Report on Form 10-K for the year ended December 31, 2023), the Company has incurred litigation costs beginning in 2023. These costs are included as a component of general and administrative expense. The Company believes that such costs are not part of its core business or ongoing operations, are unplanned and generally not within its control.  Accordingly, the Company believes that excluding the litigation costs related to these specific legal matters facilitates the comparison of the Company’s financial results to its historical operating results and to other companies in its industry.

Acquisition-, Disposal- and Integration-Related
The Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of the Company and its acquired businesses. Such costs are generally not relevant to assessing or estimating the long-term performance of the acquired assets. The Company excludes such acquisition-, disposal- and integration-related costs to allow more accurate comparisons of its financial results to its historical operations and the financial results of less acquisitive peer companies and allows management and investors to consider the ongoing operations of the business both with and without such expenses. 

Restructuring and Related
The Company has recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. The Company believes that excluding restructuring and related expense facilitates the comparison of its financial results to its historical operating results and to other companies in its industry, as there are no future revenue streams or other benefits associated with these costs. 

Preferred Stock and Warrant Liability Mark-to-Market Adjustment
The Company recorded adjustments to the fair value of its Series A Preferred Stock and Warrants to purchase shares of the Company’s common stock in Other (expense) income, net. Both of these instruments were issued in March 2023 in connection with the Company’s private placement and have been classified as liabilities and marked to market each reporting period until the Series A Preferred Stock was fully redeemed on June 25, 2024. The Warrant liability remains outstanding and will continue to be marked to market each reporting period. The Company excluded these gains and losses from the change in the fair value of these liabilities because it believes that such gains or losses were not part of its core business or ongoing operations.

Tax Effect of Non-GAAP Adjustments
The Non-GAAP income tax provision is presented based on an estimated tax rate applied against forecasted annual non-GAAP income. The Non-GAAP income tax provision assumes no available net operating losses or valuation allowances for the U.S. because of reporting significant cumulative non-GAAP income over the past several years. The Company is reporting its non-GAAP quarterly income taxes by computing an annual rate for the Company and applying that single rate (rather than multiple rates by jurisdiction) to its consolidated quarterly results. The Company expects that this methodology will provide a consistent rate throughout the year and allow investors to better understand the impact of income taxes on its results. Due to the methodology applied to its estimated annual tax rate, the Company’s estimated tax rate on non-GAAP income will differ from its GAAP tax rate and from its actual tax liabilities.

Adjusted EBITDA
The Company uses Adjusted EBITDA as a supplemental measure to review and assess its performance. The Company calculates Adjusted EBITDA by excluding from income (loss) from operations: depreciation; stock-based compensation; amortization of acquired intangible assets; certain litigation costs; acquisition-, disposal- and integration-related expense; and restructuring and related expense. In general, the Company excludes the expenses that it considers to be non-cash and/or not a part of its ongoing operations. The Company may exclude other items in the future that have those characteristics. Adjusted EBITDA is a non-GAAP financial measure that is used by the investing community for comparative and valuation purposes. The Company discloses this metric to support and facilitate dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.

Conference Call Details:
Conference call to discuss the Company’s financial results for the second quarter ended June 30, 2024.

Date: Wednesday, July 24, 2024
Time: 4:30 p.m. (ET)

Dial-In Information:
US/Canada: 877-407-2991
International: 201-389-0925
Instant Telephone Access: Call me™  

A telephone playback of the call will be available following the conference call until August 7, 2024 and can be accessed by calling 877-660-6853 or 201-612-7415 for international callers. The reservation number for the replay is 13747581.

Live (Listen-Only) Webcast:
Available via the Investor Relations website, where a replay will also be available shortly following the conference call.

For more details on financial results, please visit investors.ribboncommunications.com.

Investor Relations
+1 (978) 614-8050
ir@rbbn.com  

Media Contact
Catherine Berthier
+1 (646) 741-1974
cberthier@rbbn.com  

 

RIBBON COMMUNICATIONS INC.

Consolidated Statements of Operations

(in thousands, except percentages and per share amounts)

(unaudited)

 Three months ended 

June 30,

March 31,

June 30,

2024

2024

2023

Revenue:

Product

$  99,133

$  87,610

$ 117,347

Service

93,487

92,054

93,271

Total revenue

192,620

179,664

210,618

Cost of revenue:

Product

54,845

45,794

67,927

Service

33,376

35,364

33,782

Amortization of acquired technology

6,532

6,551

7,439

Total cost of revenue

94,753

87,709

109,148

Gross profit

97,867

91,955

101,470

Gross margin

50.8 %

51.2 %

48.2 %

Operating expenses:

Research and development

43,489

45,763

47,776

Sales and marketing

32,984

34,716

33,905

General and administrative

14,901

15,191

14,346

Amortization of acquired intangible assets

6,508

6,706

7,260

Acquisition-, disposal- and integration-related

498

Restructuring and related

1,920

3,065

4,307

Total operating expenses

99,802

105,441

108,092

Income (loss) from operations

(1,935)

(13,486)

(6,622)

Interest expense, net

(3,879)

(5,987)

(6,766)

Other (expense) income, net

(9,503)

(7,513)

(2,688)

Income (loss) before income taxes

(15,317)

(26,986)

(16,076)

Income tax benefit (provision)

(1,499)

(3,375)

(5,403)

Net income (loss)

$(16,816)

$(30,361)

$ (21,479)

Income (loss) per share:

Basic

$    (0.10)

$    (0.18)

$     (0.13)

Diluted

$    (0.10)

$    (0.18)

$     (0.13)

Weighted average shares used to compute income (loss) per share:

Basic

173,793

172,428

170,103

Diluted

173,793

172,428

170,103

 

RIBBON COMMUNICATIONS INC.

Consolidated Statements of Operations

(in thousands, except percentages and per share amounts)

(unaudited)

Six months ended

June 30,

June 30,

2024

2023

Revenue:

Product

$ 186,743

$ 210,665

Service

185,541

186,112

Total revenue

372,284

396,777

Cost of revenue:

Product

100,639

129,990

Service

68,740

69,087

Amortization of acquired technology

13,083

14,828

Total cost of revenue

182,462

213,905

Gross profit

189,822

182,872

Gross margin

51.0 %

46.1 %

Operating expenses:

Research and development

89,252

99,080

Sales and marketing

67,700

69,304

General and administrative

30,092

28,391

Amortization of acquired intangible assets

13,214

14,524

Acquisition-, disposal- and integration-related

2,140

Restructuring and related

4,985

11,244

Total operating expenses

205,243

224,683

Income (loss) from operations

(15,421)

(41,811)

Interest expense, net

(9,866)

(13,188)

Other (expense) income, net

(17,016)

2,084

Income (loss) before income taxes

(42,303)

(52,915)

Income tax benefit (provision)

(4,874)

(6,869)

Net income (loss)

$ (47,177)

$ (59,784)

Income (loss) per share:

Basic

$     (0.27)

$     (0.35)

Diluted

$     (0.27)

$     (0.35)

Weighted average shares used to compute income (loss) per share:

Basic

173,110

169,326

Diluted

173,110

169,326

 

RIBBON COMMUNICATIONS INC.

Consolidated Balance Sheets

(in thousands)

(unaudited)

June 30,

December 31,

2024

2023

Assets

Current assets:

Cash and cash equivalents

$      64,558

$       26,494

Restricted cash

2,850

136

Accounts receivable, net

210,954

268,421

Inventory

79,216

77,521

Other current assets

46,576

46,146

Total current assets

404,154

418,718

Property and equipment, net

40,824

41,820

Intangible assets, net

212,052

238,087

Goodwill

300,892

300,892

Deferred income taxes

78,067

69,761

Operating lease right-of-use assets

33,901

39,783

Other assets

35,562

35,092

$ 1,105,452

$  1,144,153

Liabilities and Stockholders’ Equity

Current liabilities:

Current portion of term debt

$        3,500

$       35,102

Accounts payable

64,333

85,164

Accrued expenses and other

92,847

91,687

Operating lease liabilities

12,347

15,739

Deferred revenue

99,547

113,381

Total current liabilities

272,574

341,073

Long-term debt, net of current

333,979

197,482

Warrant liability

6,170

5,295

Preferred stock liability

53,337

Operating lease liabilities, net of current

34,858

38,711

Deferred revenue, net of current

16,632

19,218

Deferred income taxes

5,616

5,616

Other long-term liabilities

30,601

30,658

Total liabilities

700,430

691,390

Commitments and contingencies

Stockholders’ equity:

Common stock

17

17

Additional paid-in capital

1,964,304

1,958,909

Accumulated deficit

(1,567,127)

(1,519,950)

Accumulated other comprehensive income

7,828

13,787

Total stockholders’ equity

405,022

452,763

$ 1,105,452

$  1,144,153

 

RIBBON COMMUNICATIONS INC.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Six months ended

 June 30, 

 June 30, 

2024

2023

Cash flows from operating activities:

Net loss

$  (47,177)

$  (59,784)

Adjustments to reconcile net income (loss) to cash flows provided by (used in) operating activities:

Depreciation and amortization of property and equipment

6,770

7,059

Amortization of intangible assets

26,297

29,352

Amortization of debt issuance costs and original issue discount

3,445

1,793

Amortization of accumulated other comprehensive gain related to interest rate swap

(8,196)

(2,062)

Stock-based compensation

8,016

11,964

Deferred income taxes

(8,104)

(6,946)

Gain on sale of swap

(7,301)

Change in fair value of warrant liability

875

(1,318)

Change in fair value of preferred stock liability

8,091

1,456

Dividends accrued on preferred stock liability

2,743

1,272

Payment of dividends accrued on preferred stock liability

(6,686)

Foreign currency exchange (gains) losses

2,023

(1,080)

Changes in operating assets and liabilities:

Accounts receivable

56,146

21,534

Inventory

(4,405)

(2,221)

Other operating assets

8,854

13,486

Accounts payable

(20,541)

(1,740)

Accrued expenses and other long-term liabilities

(8,407)

2,343

Deferred revenue

(16,422)

767

Net cash provided by (used in) operating activities

3,322

8,574

Cash flows from investing activities:

Purchases of property and equipment

(5,613)

(4,091)

Purchases of software licenses

(263)

Net cash provided by (used in) investing activities

(5,876)

(4,091)

Cash flows from financing activities:

Borrowings under revolving line of credit

44,106

30,000

Principal payments on revolving line of credit

(44,106)

(30,000)

Proceeds from issuance of term debt

342,300

Principal payments of term debt

(235,395)

(85,029)

Payment of debt issuance costs

(3,978)

(1,572)

Proceeds from issuance of preferred stock and warrant liabilities

53,350

Payment of preferred stock liability

(56,850)

Proceeds from the exercise of stock options

17

2

Payment of tax obligations related to vested stock awards and units

(2,638)

(3,456)

Net cash provided by (used in) financing activities

43,456

(36,705)

Effect of exchange rate changes on cash and cash equivalents

(124)

(394)

Net increase (decrease) in cash and cash equivalents

40,778

(32,616)

Cash and cash equivalents, beginning of year

26,630

67,262

Cash and cash equivalents, end of period

$    67,408

$    34,646

 

RIBBON COMMUNICATIONS INC.

Supplemental Information

(in thousands)

(unaudited)

The following tables provide the details of stock-based compensation included as components of other line items in the Company’s
Consolidated Statements of Operations and the line items in which these amounts are reported.  

 Three months ended 

 Six months ended 

June 30,

March 31,

June 30,

June 30,

June 30,

2024

2024

2023

2024

2023

Stock-based compensation

Cost of revenue – product

$        64

$        106

$      115

$      170

$       264

Cost of revenue – service

274

472

526

746

1,061

Cost of revenue

338

578

641

916

1,325

Research and development

616

1,068

1,300

1,684

2,562

Sales and marketing

954

1,157

2,142

2,111

4,271

General and administrative

1,586

1,719

2,033

3,305

3,806

Operating expense

3,156

3,944

5,475

7,100

10,639

Total stock-based compensation

$   3,494

$     4,522

$   6,116

$   8,016

$  11,964

 

RIBBON COMMUNICATIONS INC.

Reconciliation of Non-GAAP and GAAP Financial Measures

(in thousands, except per share amounts)

(unaudited)

 Three months ended 

June 30,

March 31,

June 30,

2024

2024

2023

GAAP Gross margin

50.8 %

51.2 %

48.2 %

Stock-based compensation

0.2 %

0.3 %

0.3 %

Amortization of acquired technology

3.4 %

3.6 %

3.5 %

Non-GAAP Gross margin

54.4 %

55.1 %

52.0 %

GAAP Net income (loss)

$(16,816)

$(30,361)

$(21,479)

Stock-based compensation

3,494

4,522

6,116

Amortization of acquired intangible assets

13,040

13,257

14,699

Litigation costs

1,768

951

114

Acquisition-, disposal- and integration-related

498

Restructuring and related

1,920

3,065

4,307

Preferred stock and warrant liability mark-to-market adjustment

8,210

3,499

1,410

Tax effect of non-GAAP adjustments

(3,095)

3,971

2,083

Non-GAAP Net income (loss)

$   8,521

$  (1,096)

$   7,748

GAAP Diluted earnings (loss) per share

$    (0.10)

$    (0.18)

$    (0.13)

Stock-based compensation

0.02

0.03

0.03

Amortization of acquired intangible assets

0.08

0.07

0.09

Litigation costs

0.01

0.01

 * 

Acquisition-, disposal- and integration-related

0.01

Restructuring and related

0.01

0.02

0.02

Preferred stock and warrant liability mark-to-market adjustment

0.05

0.02

0.01

Tax effect of non-GAAP adjustments

(0.02)

0.02

0.01

Non-GAAP Diluted earnings (loss) per share

$     0.05

$    (0.01)

$     0.04

Weighted average shares used to compute diluted earnings (loss) per share

 Shares used to compute GAAP diluted earnings (loss) per share

173,793

172,428

170,103

 Shares used to compute Non-GAAP diluted earnings (loss) per share

176,246

172,428

175,220

GAAP Income (loss) from operations

$  (1,935)

$(13,486)

$  (6,622)

Depreciation

3,376

3,394

3,549

Stock-based compensation

3,494

4,522

6,116

Amortization of acquired intangible assets

13,040

13,257

14,699

Litigation costs

1,768

951

114

Acquisition-, disposal- and integration-related

498

Restructuring and related

1,920

3,065

4,307

Non-GAAP Adjusted EBITDA

$  21,663

$  11,703

$  22,661

* Less than $0.01 impact on earnings (loss) per share.

 

RIBBON COMMUNICATIONS INC.

Reconciliation of Non-GAAP and GAAP Financial Measures

(in thousands, except per share amounts)

(unaudited)

Six months ended

June 30,

June 30,

2024

2023

GAAP Gross Margin

51.0 %

46.1 %

Stock-based compensation

0.2 %

0.3 %

Amortization of acquired technology

3.5 %

3.8 %

Non-GAAP Gross Margin

54.7 %

50.2 %

GAAP Net income (loss)

$(47,177)

$(59,784)

Stock-based compensation

8,016

11,964

Amortization of acquired intangible assets

26,297

29,352

Litigation costs

2,719

291

Acquisition-, disposal- and integration-related

2,140

Restructuring and related

4,985

11,244

Preferred stock and warrant liability mark-to-market adjustment

11,709

1,410

Preferred stock and warrant liability issuance costs

3,545

Tax effect of non-GAAP adjustments

876

4,759

Non-GAAP Net income (loss)

$    7,425

$    4,921

GAAP Diluted earnings (loss) per share

$     (0.27)

$    (0.35)

Stock-based compensation

0.05

0.07

Amortization of acquired intangible assets

0.14

0.18

Litigation costs

0.02

 * 

Acquisition-, disposal- and integration-related

0.01

Restructuring and related

0.03

0.06

Preferred stock and warrant liability mark-to-market adjustment

0.07

0.01

Preferred stock and warrant liability issuance costs

0.02

Tax effect of non-GAAP adjustments

 * 

0.03

Non-GAAP Diluted earnings (loss) per share

$      0.04

$      0.03

Weighted average shares used to compute diluted earnings per share

 Shares used to compute GAAP diluted loss per share

173,110

169,326

 Shares used to compute Non-GAAP diluted earnings per share

175,784

175,359

GAAP Income (loss) from operations

$(15,421)

$(41,811)

Depreciation

6,770

7,059

Stock-based compensation

8,016

11,964

Amortization of acquired intangible assets

26,297

29,352

Litigation costs

2,719

291

Acquisition-, disposal- and integration-related

2,140

Restructuring and related

4,985

11,244

Non-GAAP Adjusted EBITDA

$  33,366

$  20,239

* Less than $0.01 impact on earnings (loss) per share.

 

RIBBON COMMUNICATIONS INC.

Reconciliation of Non-GAAP and GAAP Financial Measures

(in thousands)

(unaudited)

 Trailing Twelve Months 

June 30,

March 31,

June 30,

2024

2024

2023

GAAP Income (loss) from operations

$     2,105

$     (2,582)

$(43,842)

Depreciation

13,816

13,989

14,581

Stock-based compensation

17,858

20,480

22,017

Amortization of acquired intangible assets

53,836

55,495

59,597

Litigation costs

3,735

2,081

291

Acquisition-, disposal- and integration-related

2,336

2,834

5,042

Restructuring and related

9,950

12,337

14,369

Non-GAAP Adjusted EBITDA

$ 103,636

$  104,634

$  72,055

 

RIBBON COMMUNICATIONS INC.

Reconciliation of Non-GAAP and GAAP Financial Measures – Outlook

(unaudited)

 Three months ending  

 Year ending  

September 30, 2024

December 31, 2024

Midpoint (1)

Range

Midpoint (1)

Range

Revenue ($ millions)

$     212.5

 +/- $7.5M

$        840

+/- $10M

Gross margin:

GAAP outlook

50.09 %

51.07 %

Stock-based compensation

0.26 %

0.24 %

Amortization of acquired technology

2.90 %

2.94 %

Non-GAAP outlook

53.25 %

 +/- 0.25%

54.25 %

+/- 0.25%

Adjusted EBITDA ($ millions):

GAAP income (loss) from operations

$         3.0

$         5.9

Depreciation

3.8

14.4

Stock-based compensation

4.7

17.2

Amortization of acquired intangible assets

12.8

50.9

Litigation costs

0.9

4.6

Restructuring and related

2.3

17.0

Non-GAAP outlook

$       27.5

 +/- $2.5M

$     110.0

+/- $5M

(1) Q3 2024 and FY 2024 outlook represents the midpoint of the expected ranges

 

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SOURCE Ribbon Communications Inc.

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NIX United Achieves AWS AI Competency After Rigorous Audit

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AI-enabled software development company NIX United has officially achieved the AWS AI Competency designation from Amazon Web Services (AWS). The recognition validates NIX’s proven expertise in architecting, securing, and deploying enterprise-grade artificial intelligence and machine learning solutions on AWS.

TAMPA, Fla., July 23, 2026 /PRNewswire-PRWeb/ — For enterprise organizations, the designation provides independent validation of NIX’s end-to-end AI capabilities across solution architecture, data security, governance, and operational excellence. It is based on successful production deployments, including a generative AI customer feedback analytics platform and an AI-powered medical education solution. The competency also provides eligible customers with access to AWS-validated frameworks, specialized technical resources, and AWS GenAI Innovation Funding programs.

“AI must be engineered for long-term production value,” said Artur Bakulin, Head of RnD and Innovation at NIX United. “Earning the AWS AI Competency reflects our commitment to building AI architectures grounded in verifiable return on investment.”

Moving Beyond AI Demos to Production Value

While AI adoption accelerates, organizations face a critical barrier: transitioning from impressive proofs of concept to production-grade applications. Building AI for the modern enterprise requires solving complex challenges around regulatory compliance and seamless system integration.

To earn the AWS AI Competency, NIX completed a comprehensive technical audit demonstrating its ability to deliver scalable AI solutions. The evaluation covered engineering practices, security controls, governance frameworks, and operational excellence, while highlighting NIX’s experience applying generative AI to complex business workflows.

Strategic Benefits for Enterprise Clients

“AI must be engineered for long-term production value,” said Artur Bakulin, Head of RnD and Innovation at NIX United. “Earning the AWS AI Competency reflects our commitment to building AI architectures grounded in verifiable return on investment.”

For NIX clients, this designation provides:

Reduced project risk through AWS-validated architectures that support data privacy, security, and regulatory compliance.Faster project execution with access to eligible AWS funding programs, including subsidized AI assessments, Proofs of Concept (PoCs), and AWS GenAI Innovation Funding.Long-term scalability with solutions engineered to move seamlessly from pilot projects to business-critical production environments.

Organizations exploring generative AI initiatives can work with NIX experts to evaluate their eligibility for the AWS GenAI Innovation Funding Program and identify opportunities to accelerate adoption.

Frequently Asked Questions

Q: What specific competency did NIX United achieve?

A: NIX achieved the AWS AI Competency, a formal designation by Amazon Web Services verifying a partner’s technical proficiency and robust customer success in delivering generative AI solutions.

Q: What criteria did AWS use to evaluate NIX United?

A: AWS conducted a comprehensive technical audit covering NIX’s solution architecture, security controls, governance frameworks, and delivery methodology.

Q: How can enterprise clients fund their AI initiatives with NIX United?

A: Through NIX’s status as an advanced AWS partner, eligible clients can access the AWS GenAI Innovation Funding Program to offset costs for AI assessments, proofs-of-concept, and full-scale implementations.

Media Contact

Yevheniia Kryvenko, NIX United, 1 7272563558, yevheniia.kryvenko@nixs.com, NIX United

View original content:https://www.prweb.com/releases/nix-united-achieves-aws-ai-competency-after-rigorous-audit-302831769.html

SOURCE NIX United

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Apollo and San Jose Earthquakes Announce Official Sleeve and Go-to-Market Partnership, Bringing the AI GTM System to Major League Soccer

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First-of-its-kind partnership to help Earthquakes capitalize on soccer’s surging popularity through AI-powered GTM transformation

SAN FRANCISCO, July 23, 2026 /PRNewswire/ — Apollo, the AI go-to-market system, announced today a multiyear Official Sleeve Partnership with Major League Soccer’s San Jose Earthquakes that entails becoming both the club’s Official Go-to-Market Partner and the first go-to-market (GTM) company to combine a professional sports sponsorship with a full-scale partnership for revenue operations transformation.

As soccer continues its unprecedented rise in popularity across the United States, with MLS seeing a 62% year-over-year increase in viewership to kick off the 2026 season, the unique partnership positions the Earthquakes to modernize their GTM, accelerate revenue and capitalize on the sport’s expanding global audience.

In the partnership, Apollo will serve as both a brand sponsor with its logo featured prominently on the right sleeve of the Earthquakes’ jersey, and as a technology partner, powering the club’s GTM strategy. The club will deploy Apollo’s system across key revenue-generating functions, including group ticket sales, sponsorship pipeline management, inbound lead routing and season ticket renewals, creating a modern GTM system designed to drive fan engagement and commercial growth.

“We see this partnership as a natural extension of Apollo’s mission to make world-class go-to-market accessible to everyone by bringing it to the world’s most popular game,” said Matt Curl, CEO of Apollo. “Soccer is entering an incredible growth phase in the U.S., creating a once-in-a-generation opportunity for clubs to deepen fan relationships and accelerate commercial growth. Every professional sports team is running a revenue business focused on finding customers, engaging fans, growing sponsorships and driving renewals. By bringing together data, intelligence and execution into one system, we’re helping the Earthquakes build a modern commercial operation that will become a model for the future of sports.”  

The partnership reflects Apollo’s broader vision that every organization can benefit from its AI GTM system. With the rise in soccer’s popularity, clubs face increasing pressure to convert fan interest into lasting relationships, ticket sales, sponsorships and recurring revenue. While sports organizations have historically relied on fragmented tools across ticketing, sponsorship sales, CRM and marketing, Apollo brings those workflows together into one connected system to help organizations capitalize on this moment.

For the Earthquakes, that means:

Modernizing group ticket sales workflowsImproving inbound lead managementGrowing sponsorship pipelineStreamlining season ticket renewal campaignsGiving sales and marketing teams a unified system

“While excitement around soccer continues to grow across the country, we’re investing in the technology and systems that will help us better engage our supporters and continue growing our commercial business,” said Earthquakes President Jared Shawlee. “I started my career in sales and have never seen the kind of technology that Apollo provides. This will transform our approach to sales and marketing by giving us one system to connect data, automate workflows and create a more connected experience for Quakes fans throughout their journey with the club.”

“We are excited to roll out the Apollo AI GTM system to revenue teams across our organization,” added Earthquakes Chief Strategy Officer Ian Anderson. “Apollo is at the forefront of AI-powered GTM and the Quakes are committed to being ahead of the technology curve for our industry.”

The Earthquakes become Apollo’s first official sports partner, laying the foundation for a broader strategy to bring modern GTM technology to sports organizations worldwide. Apollo plans to use the partnership as a blueprint for working with hundreds of professional sports organizations facing similar revenue and commercial challenges.

“This is just the beginning,” added Curl. “Professional sports organizations have the same GTM challenges as fast-growing businesses. We’re excited to demonstrate what’s possible when data, intelligence, and execution come together in a single system to help teams build stronger relationships with fans, partners, and customers.”

The partnership will officially debut ahead of the Earthquakes’ annual California Clasico match on Saturday, July 25, against the LA Galaxy at Stanford Stadium, with Apollo and the club jointly celebrating the launch through customer events, social activations and in-stadium experiences.

About Apollo
Apollo is the AI GTM System that uniquely combines data, intelligence, and execution in one loop helping every business find and win their next customer. Trusted by millions of users and over 600,000 companies worldwide, Apollo combines one of the industry’s largest B2B contact databases with a purpose built GTM intelligence engine and a full execution stack, in an all-in-one system. Learn more at apollo.io.

About San Jose Earthquakes
The San Jose Earthquakes, one of Major League Soccer’s original teams, are the epicenter for soccer in Northern California, playing at the highest professional level in the United States. The club won MLS Cups in 2001 and 2003 and took home Supporters’ Shields in 2005 and 2012. The Earthquakes are based out of PayPal Park, an 18,000-seat soccer-specific stadium that opened in 2015 and is the first cloud-enabled venue in MLS. The organization was originally founded in 1974 in the North American Soccer League, and in 2024, celebrated its 50th anniversary of positively impacting communities around Northern California. The club’s nonprofit arm, the Quakes Foundation, focuses on health and fitness initiatives for local underserved youth and fighting food insecurity. For more information about the Earthquakes, visit sjearthquakes.com.

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SOURCE Apollo.io

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CIQ Arms Federal Agencies and Contractors with Kernel-Level Detection and BOD 26-04-Compliant Remediation

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RLC Pro Hardened and Ascender Pro together give federal teams kernel exploitation detection as it happens and CVE remediation before it wipes out an entire fleet

RENO, Nev., July 23, 2026 /PRNewswire/ — CIQ, the founding commercial sponsor of Rocky Linux, today announced the launch of an RLC Pro Hardened and Ascender Pro deployment that gives federal agencies real-time kernel exploit detection, audit-ready compliance, and automated remediation in a single deployment. The pairing gives federal teams a stronger position inside the three-day remediation window Binding Operational Directive (BOD) 26-04 sets for the highest-risk vulnerabilities on federal systems.

On June 10, 2026, CISA issued BOD 26-04, and the three-day clock starts when a flaw enters the Known Exploited Vulnerabilities (KEV) catalog, not when a patch ships. For the most dangerous vulnerabilities, the exploit often arrives before the patch does, leaving agencies with a compliance deadline and no fix to apply yet. Non-compliance penalties can include a range of administrative consequences, including greater regulatory oversight and asset disconnection.

RLC Pro Hardened, CIQ’s federal-ready Enterprise Linux distribution, answers that gap. It is the first Enterprise Linux distribution to ship runtime kernel exploitation detection enabled and supported by default, giving agencies a record of what happened during the window before a fix shipped. CIQ delivered that capability well before BOD 26-04 put federal agencies on a three-day clock.

“A single critical vulnerability can impact an entire federal fleet before it’s even confirmed as a CVE,” said Gregory Kurtzer, founder and CEO of CIQ. “RLC Pro Hardened’s LKRG catches the exploit behavior at the kernel the moment it happens, patch or no patch. Once remediation is required, Ascender Pro orchestrates it across the entire fleet and proves it happened, system by system. Agencies get both sides covered without rebuilding their infrastructure.”

RLC Pro Hardened ships with Linux Kernel Runtime Guard (LKRG), which validates kernel integrity continuously and records kernel-level exploitation as it happens. The distribution also arrives audit-ready, with FIPS 140-3 validated cryptography and CIQ-engineered lockdown playbooks for DISA STIG, CIS and NIST 800-171.

Ascender Pro adds Reaqt, an event-driven engine that watches fleet logs, matches them against rule sets, and fires the right Ansible playbook automatically. Across a fleet, that closes issues faster than manual, ticket-driven review.

More About BOD 26-04

BOD 26-04 replaced the severity-score deadlines of BOD 22-01 and BOD 19-02 with a risk model. It scores each vulnerability on four factors: public exposure, presence in the KEV catalog, exploit automation and technical impact. A vulnerability that meets all four carries a three-calendar-day remediation deadline, the shortest CISA has set in a Binding Operational Directive. Agency remediation policies must support the directive by August 7, 2026.

About CIQ

CIQ is the founding support and services partner for Rocky Linux and a leading provider of enterprise Linux infrastructure. CIQ delivers commercially supported Linux offerings, high-performance computing solutions and AI infrastructure to enterprises, government agencies, research institutions and supercomputing centers worldwide. CIQ’s products include the Rocky Linux from CIQ (RLC Pro) family of operating systems, Ascender Pro for IT automation, Fuzzball job-based container orchestration, Warewulf cluster provisioning and Apptainer, the leading container system for high-performance computing. For more information, visit ciq.com.

MEDIA CONTACT:
Cristin Connelly
Cathey Communications for CIQ
cristin@cathey.co

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SOURCE CIQ

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