Ribbon Communications Reports Preliminary Fourth Quarter 2021 Financial Results

Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real-time communications software and IP optical transport solutions to service providers, enterprises, and critical infrastructure sectors, today announced preliminary financial results for the fourth quarter of 2021. All figures in this release are approximate due to the preliminary nature of the announcement.

For the fourth quarter of 2021, revenue is expected to be $231 million, gross margin is expected to be 50%, non-GAAP gross margin is expected to be 54%, operating loss is expected to be $4 million and adjusted EBITDA is expected to be $26 million. Cash on hand at the end of the quarter increased to $106 million.

As expected, demand for products and services increased in the fourth quarter of 2021 with sequential sales growth of 10% and a product/service book-to-bill ratio of 1.13. However, overall sales were below the Company’s previous guidance range as supply chain and logistics issues increased significantly in the final weeks of the quarter, impacting the Company’s ability to deliver products and reducing sales by approximately $10 million. IP Optical Networks segment sales increased more than 20% quarter-over-quarter to approximately $83 million. Cloud & Edge revenue is expected to be $147 million, with several software deals having moved into 2022 and higher Enterprise Edge hardware sales, impacting both revenue and margin.

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