Ribbon Communications Inc. Reports Fourth Quarter and Full Year 2022 Financial Results
Ribbon Communications (RBBN) reported a 13% sequential revenue growth in Q4 2022, totaling $234 million, compared to $231 million in Q4 2021 and $207 million in Q3 2022. Full-year revenue declined to $820 million from $845 million. The company achieved non-GAAP net income of $15 million in Q4 2022, an improvement from $1 million in Q4 2021. Adjusted EBITDA rose 25% quarter-over-quarter to $29 million. Looking ahead, RBBN projects Q1 2023 revenue between $180 million and $190 million and expects full-year revenue of $840 million to $870 million.
- Sequential revenue growth of 13% to $234 million in Q4 2022.
- Adjusted EBITDA increased by 25% quarter-over-quarter.
- IP Optical sales rose 17% year-over-year.
- Non-GAAP net income improved to $15 million in Q4 2022.
- Full-year revenue declined to $820 million from $845 million in 2021.
- Expected non-GAAP gross margin lower due to higher start-up costs.
Revenue Grew
IP Optical Sales Up
Revenue for the fourth quarter of 2022 was
"I am very pleased to report solid financial results for the fourth quarter 2022 - the best quarter of the year for Ribbon. Our overall sales were above the mid-point of our guidance, and adjusted EBITDA grew
McClelland continued, "The highlight of our quarter includes continued improvement in our IP Optical business, with increased sales across all regions and multiple new customer wins. In particular, momentum continued in our IP Routing portfolio with sales increasing
Financial Highlights1 | ||||||||||||
In millions, except per share amounts | Three months ended | Year ended | ||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
GAAP Revenue | $ | 234 | $ | 231 | $ | 820 | $ | 845 | ||||
GAAP Net income (loss) | $ | 20 | $ | (96) | $ | (98) | $ | (177) | ||||
Non-GAAP Net income | $ | 15 | $ | 1 | $ | 17 | $ | 49 | ||||
Non-GAAP Adjusted EBITDA | $ | 29 | $ | 26 | $ | 64 | $ | 120 | ||||
GAAP diluted earnings (loss) per share | $ | 0.12 | $ | (0.65) | $ | (0.63) | $ | (1.20) | ||||
Non-GAAP diluted earnings per share | $ | 0.09 | $ | 0.01 | $ | 0.11 | $ | 0.32 | ||||
Weighted average shares outstanding basic | 168 | 149 | 157 | 148 | ||||||||
Weighted average shares outstanding diluted | 172 | 154 | 161 | 155 | ||||||||
1 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information |
Cash, cash equivalents, and restricted cash totaled
"We are very encouraged with revenue and bookings momentum to close out the year and with the cash generation of the company during the quarter. Operating expenses were
Business Outlook1
For 2023, the Company expects to build on the momentum from the second half of 2022, with a stronger portfolio and market presence, and to follow a normal seasonal pattern with the business accelerating as the year progresses.
For the first quarter of 2023, the Company projects revenue of
For the full year 2023, the Company projects revenue of
1 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP |
Upcoming Conference Schedule
February 27-March 2, 2023 :Mobile World Congress March 7-9, 2023 :Optical Fiber Communication Conference and Exhibition March 27-30, 2023 : Enterprise ConnectMay 25, 2023 :B. Riley Securities 23rd AnnualInstitutional Investor Conference (one-on-one institutional investor meetings).
About Ribbon
Important Information Regarding Forward-Looking Statements
The information in this release contains "forward-looking statements" within the meaning of the
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 disputes, including between
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
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 will allow investors to view the 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, its 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.
Impairment of
The Company performs its annual testing for impairment of goodwill in the fourth quarter each year. For the purpose of testing goodwill for impairment, all goodwill has been assigned to one of the Company's two operating segments. The Company performs a fair value analysis using both an income and market approach, which encompasses a discounted cash flow analysis and a guideline public company analysis using selected multiples. Based on the results of the impairment test completed in the fourth quarter of 2021, the Company determined that the carrying value of its IP Optical Networks segment exceeded its fair value, and accordingly, recorded a non-cash impairment charge of
Acquisition-, Disposal- and Integration-Related
The Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of its acquired businesses and the Company. 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.
Interest Income on Debentures
The Company recorded paid-in-kind interest income on the
Gain on Sale of Business
On
Decrease in Fair Value of Investments
The Company calculated the fair values of the Debentures and the warrants to purchase shares of AVCT common stock it received as consideration in connection with the Kandy Sale (the "Warrants") (prior to
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
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; amortization of acquired intangible assets; stock-based compensation; impairment of goodwill; 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 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 fourth quarter and year ended
Conference Call Details:
Date: February 15, 2023
Time: 4:30 p.m. (ET)
Dial-in number (
Dial-in number (Intl): 201-389-0925
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Replay information:
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Investor Relations
+1 (978) 614-8050
ir@rbbn.com
Media Contact
+1 (646) 741-1974
cberthier@rbbn.com
Consolidated Statements of Operations | ||||||||
(in thousands, except percentages and per share amounts) | ||||||||
(unaudited) | ||||||||
Three months ended | ||||||||
2022 | 2022 | 2021 | ||||||
Revenue: | ||||||||
Product | $ 136,871 | $ 111,152 | $ 130,298 | |||||
Service | 96,768 | 95,975 | 100,279 | |||||
Total revenue | 233,639 | 207,127 | 230,577 | |||||
Cost of revenue: | ||||||||
Product | 75,919 | 59,866 | 70,165 | |||||
Service | 36,088 | 35,175 | 36,711 | |||||
Amortization of acquired technology | 7,619 | 7,768 | 8,908 | |||||
Total cost of revenue | 119,626 | 102,809 | 115,784 | |||||
Gross profit | 114,013 | 104,318 | 114,793 | |||||
Gross margin | 48.8 % | 50.4 % | 49.8 % | |||||
Operating expenses: | ||||||||
Research and development | 50,517 | 49,366 | 51,609 | |||||
Sales and marketing | 37,939 | 36,365 | 42,067 | |||||
General and administrative | 13,172 | 12,118 | 13,226 | |||||
Amortization of acquired intangible assets | 7,350 | 7,508 | 7,493 | |||||
Impairment of goodwill | - | - | 116,000 | |||||
Acquisition-, disposal- and integration-related | 1,914 | 988 | 3,428 | |||||
Restructuring and related | 1,856 | 1,269 | 1,106 | |||||
Total operating expenses | 112,748 | 107,614 | 234,929 | |||||
Income (loss) from operations | 1,265 | (3,296) | (120,136) | |||||
Interest expense, net | (5,911) | (5,266) | (3,995) | |||||
Other expense, net | (1,735) | (3,732) | (8,546) | |||||
Loss before income taxes | (6,381) | (12,294) | (132,677) | |||||
Income tax benefit (provision) | 26,869 | (6,122) | 36,369 | |||||
Net income (loss) | $ 20,488 | $ (18,416) | $ (96,308) | |||||
Income (loss) per share: | ||||||||
Basic | $ 0.12 | $ (0.12) | $ (0.65) | |||||
Diluted | $ 0.12 | $ (0.12) | $ (0.65) | |||||
Weighted average shares used to compute income (loss) per share: | ||||||||
Basic | 168,163 | 158,921 | 148,675 | |||||
Diluted | 172,213 | 158,921 | 148,675 | |||||
Consolidated Statements of Operations | ||||||
(in thousands, except percentages and per share amounts) | ||||||
(unaudited) | ||||||
Year ended | ||||||
2022 | 2021 | |||||
Revenue: | ||||||
Product | $ 442,680 | $ 453,042 | ||||
Service | 377,080 | 391,915 | ||||
Total revenue | 819,760 | 844,957 | ||||
Cost of revenue: | ||||||
Product | 245,145 | 214,745 | ||||
Service | 142,137 | 147,209 | ||||
Amortization of acquired technology | 31,542 | 38,343 | ||||
Total cost of revenue | 418,824 | 400,297 | ||||
Gross profit | 400,936 | 444,660 | ||||
Gross margin | 48.9 % | 52.6 % | ||||
Operating expenses: | ||||||
Research and development | 203,676 | 194,948 | ||||
Sales and marketing | 147,766 | 150,279 | ||||
General and administrative | 51,053 | 53,661 | ||||
Amortization of acquired intangible assets | 29,646 | 28,283 | ||||
Impairment of goodwill | - | 116,000 | ||||
Acquisition-, disposal- and integration-related | 6,286 | 7,632 | ||||
Restructuring and related | 10,833 | 11,653 | ||||
Total operating expenses | 449,260 | 562,456 | ||||
Loss from operations | (48,324) | (117,796) | ||||
Interest expense, net | (19,780) | (15,831) | ||||
Other expense, net | (44,495) | (74,516) | ||||
Loss before income taxes | (112,599) | (208,143) | ||||
Income tax benefit | 14,516 | 30,958 | ||||
Net loss | $ (98,083) | $ (177,185) | ||||
Loss per share | ||||||
Basic | $ (0.63) | $ (1.20) | ||||
Diluted | $ (0.63) | $ (1.20) | ||||
Weighted average shares used to compute loss per share: | ||||||
Basic | 156,668 | 147,575 | ||||
Diluted | 156,668 | 147,575 | ||||
Consolidated Balance Sheets | ||||||
(in thousands) | ||||||
(unaudited) | ||||||
2022 | 2021 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 67,101 | $ 103,915 | ||||
Restricted cash | 161 | 2,570 | ||||
Accounts receivable, net | 267,244 | 282,917 | ||||
Inventory | 75,423 | 54,043 | ||||
Other current assets | 68,057 | 37,545 | ||||
Total current assets | 477,986 | 480,990 | ||||
Property and equipment, net | 44,832 | 47,685 | ||||
Intangible assets, net | 294,728 | 350,730 | ||||
300,892 | 300,892 | |||||
Investments | - | 43,931 | ||||
Deferred income taxes | 53,649 | 47,287 | ||||
Operating lease right-of-use assets | 44,888 | 53,147 | ||||
Other assets | 38,589 | 23,075 | ||||
$ 1,255,564 | $ 1,347,737 | |||||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Current portion of term debt* | $ 20,058 | $ 20,058 | ||||
Accounts payable | 95,810 | 97,121 | ||||
Accrued expenses and other | 85,270 | 100,752 | ||||
Operating lease liabilities | 15,416 | 17,403 | ||||
Deferred revenue | 113,939 | 109,119 | ||||
Total current liabilities | 330,493 | 344,453 | ||||
Long-term debt, net of current* | 306,270 | 350,217 | ||||
Operating lease liabilities, net of current | 46,183 | 55,196 | ||||
Deferred revenue, net of current | 19,254 | 20,619 | ||||
Deferred income taxes | 3,750 | 8,116 | ||||
Other long-term liabilities | 31,187 | 41,970 | ||||
Total liabilities | 737,137 | 820,571 | ||||
Commitments and contingencies | ||||||
Stockholders' equity: | ||||||
Common stock | 17 | 15 | ||||
Additional paid-in capital | 1,941,569 | 1,875,234 | ||||
Accumulated deficit | (1,453,744) | (1,355,661) | ||||
Accumulated other comprehensive income | 30,585 | 7,578 | ||||
Total stockholders' equity | 518,427 | 527,166 | ||||
$ 1,255,564 | $ 1,347,737 | |||||
*Based on the current financial forecast, the Company continues to evaluate compliance with the financial covenants under the | ||||||
Consolidated Statements of Cash Flows | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Year ended | |||||||
December 31, | December 31, | ||||||
2022 | 2021 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ (98,083) | $ (177,185) | |||||
Adjustments to reconcile net loss to cash flows (used in) provided by operating activities: | |||||||
Depreciation and amortization of property and equipment | 15,295 | 16,962 | |||||
Amortization of intangible assets | 61,188 | 66,626 | |||||
Amortization of debt issuance costs | 2,308 | 4,763 | |||||
Stock-based compensation | 18,707 | 19,418 | |||||
Impairment of goodwill | - | 116,000 | |||||
Deferred income taxes | (18,251) | (45,596) | |||||
Gain on sale of business | (62) | (2,772) | |||||
Decrease in fair value of investments | 41,291 | 71,252 | |||||
Foreign currency exchange losses | 1,576 | 5,002 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 14,285 | (47,279) | |||||
Inventory | (32,099) | (9,029) | |||||
Other operating assets | 2,109 | 9,958 | |||||
Accounts payable | (448) | 34,482 | |||||
Accrued expenses and other long-term liabilities | (37,635) | (50,324) | |||||
Deferred revenue | 3,455 | 6,904 | |||||
Net cash (used in) provided by operating activities | (26,364) | 19,182 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (10,254) | (17,132) | |||||
Proceeds from sale of business | 1,418 | 2,944 | |||||
Purchases of software licenses | (3,300) | - | |||||
Net cash used in investing activities | (12,136) | (14,188) | |||||
Cash flows from financing activities: | |||||||
Borrowings under revolving line of credit | 73,625 | - | |||||
Principal payments on revolving line of credit | (73,625) | - | |||||
Proceeds from issuance of term debt | - | 74,625 | |||||
Principal payments of term debt | (45,058) | (92,176) | |||||
Principal payments of finance leases | (595) | (903) | |||||
Payment of debt issuance costs | (1,046) | (789) | |||||
Proceeds from equity offering | 52,067 | - | |||||
Payment of equity offering issuance costs | (1,654) | - | |||||
Proceeds from the exercise of stock options | 1 | 24 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock awards | (2,784) | (14,464) | |||||
Net cash provided by (used in) by financing activities | 931 | (33,683) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,654) | (523) | |||||
Net decrease in cash, cash equivalents and restricted cash | (39,223) | (29,212) | |||||
Cash, cash equivalents and restricted cash, beginning of year | 106,485 | 135,697 | |||||
Cash, cash equivalents and restricted cash, end of period | $ 67,262 | $ 106,485 | |||||
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 | ||||||||||||
Three months ended | Year ended | |||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||
Stock-based compensation | ||||||||||||
Cost of revenue - product | $ 132 | $ 133 | $ 97 | $ 471 | $ 313 | |||||||
Cost of revenue - service | 590 | 592 | 488 | 2,157 | 1,684 | |||||||
Cost of revenue | 722 | 725 | 585 | 2,628 | 1,997 | |||||||
Research and development | 1,373 | 1,289 | 1,243 | 5,108 | 4,253 | |||||||
Sales and marketing | 1,656 | 1,567 | 2,011 | 6,074 | 7,218 | |||||||
General and administrative | 1,461 | 1,260 | 1,168 | 4,897 | 5,950 | |||||||
Operating expense | 4,490 | 4,116 | 4,422 | 16,079 | 17,421 | |||||||
Total stock-based compensation | $ 5,212 | $ 4,841 | $ 5,007 | $ 18,707 | $ 19,418 | |||||||
Reconciliation of Non-GAAP and GAAP Financial Measures | |||||
(in thousands, except per share amounts) | |||||
(unaudited) | |||||
Three months ended | |||||
2022 | 2022 | 2021 | |||
GAAP Gross margin | 48.8 % | 50.4 % | 49.8 % | ||
Stock-based compensation | 0.3 % | 0.4 % | 0.3 % | ||
Amortization of acquired technology | 3.3 % | 3.7 % | 3.8 % | ||
Non-GAAP Gross margin | 52.4 % | 54.5 % | 53.9 % | ||
GAAP Net income (loss) | $ 20,488 | $ (18,416) | $ (96,308) | ||
Stock-based compensation | 5,212 | 4,841 | 5,007 | ||
Amortization of acquired intangible assets | 14,969 | 15,276 | 16,401 | ||
Impairment of goodwill | - | - | 116,000 | ||
Acquisition-, disposal- and integration-related | 1,914 | 988 | 3,428 | ||
Restructuring and related | 1,856 | 1,269 | 1,106 | ||
Decrease in fair value of investments | - | 1,881 | 6,508 | ||
Tax effect of non-GAAP adjustments | (28,950) | (1,881) | (50,830) | ||
Non-GAAP Net income | $ 15,489 | $ 3,958 | $ 1,312 | ||
GAAP Diluted income (loss) per share | $ 0.12 | $ (0.12) | $ (0.65) | ||
Stock-based compensation | 0.03 | 0.03 | 0.03 | ||
Amortization of acquired intangible assets | 0.09 | 0.09 | 0.12 | ||
Impairment of goodwill | - | - | 0.77 | ||
Acquisition-, disposal- and integration-related | 0.01 | 0.01 | 0.02 | ||
Restructuring and related | 0.01 | 0.01 | 0.01 | ||
Decrease in fair value of investments | - | 0.01 | 0.04 | ||
Tax effect of non-GAAP adjustments | (0.17) | (0.01) | (0.33) | ||
Non-GAAP Diluted earnings per share | $ 0.09 | $ 0.02 | $ 0.01 | ||
Weighted average shares used to compute diluted earnings per share | |||||
Shares used to compute GAAP diluted loss per share | 168,163 | 158,921 | 148,675 | ||
Shares used to compute Non-GAAP diluted earnings per share | 172,213 | 163,463 | 153,898 | ||
GAAP Income (loss) from operations | $ 1,265 | $ (3,296) | $ (120,136) | ||
Depreciation | 3,607 | 3,915 | 4,278 | ||
Amortization of acquired intangible assets | 14,969 | 15,276 | 16,401 | ||
Stock-based compensation | 5,212 | 4,841 | 5,007 | ||
Impairment of goodwill | - | - | 116,000 | ||
Acquisition-, disposal- and integration-related | 1,914 | 988 | 3,428 | ||
Restructuring and related | 1,856 | 1,269 | 1,106 | ||
Non-GAAP Adjusted EBITDA | $ 28,823 | $ 22,993 | $ 26,084 | ||
Reconciliation of Non-GAAP and GAAP Financial Measures | |||
(in thousands, except per share amounts) | |||
(unaudited) | |||
Year ended | |||
2022 | 2021 | ||
GAAP Gross Margin | 48.9 % | 52.6 % | |
Stock-based compensation | 0.3 % | 0.2 % | |
Amortization of acquired technology | 3.9 % | 4.6 % | |
Non-GAAP Gross Margin | 53.1 % | 57.4 % | |
GAAP Net loss | $ (98,083) | $ (177,185) | |
Stock-based compensation | 18,707 | 19,418 | |
Amortization of acquired intangible assets | 61,188 | 66,626 | |
Impairment of goodwill | - | 116,000 | |
Acquisition-, disposal- and integration-related | 6,286 | 7,632 | |
Restructuring and related | 10,833 | 11,653 | |
Interest income on debentures | - | (3,556) | |
Gain on sale of business | - | (2,772) | |
Decrease in fair value of investments | 41,292 | 74,809 | |
Tax effect of non-GAAP adjustments | (22,875) | (63,209) | |
Non-GAAP Net income | $ 17,348 | $ 49,416 | |
GAAP Diluted loss per share | $ (0.63) | $ (1.20) | |
Stock-based compensation | 0.12 | 0.14 | |
Amortization of acquired intangible assets | 0.39 | 0.44 | |
Impairment of goodwill | - | 0.77 | |
Acquisition-, disposal- and integration-related | 0.04 | 0.05 | |
Restructuring and related | 0.07 | 0.08 | |
Gain on sale of business | - | (0.02) | |
Interest income on debentures | - | (0.02) | |
Decrease in fair value of investments | 0.26 | 0.50 | |
Tax effect of non-GAAP adjustments | (0.14) | (0.42) | |
Non-GAAP Diluted earnings per share | $ 0.11 | $ 0.32 | |
Weighted average shares used to compute diluted earnings per share | |||
Shares used to compute GAAP diluted loss per share | 156,668 | 147,575 | |
Shares used to compute Non-GAAP diluted earnings per share | 161,325 | 154,527 | |
GAAP Loss from operations | $ (48,324) | $ (117,796) | |
Depreciation | 15,295 | 16,962 | |
Amortization of acquired intangible assets | 61,188 | 66,626 | |
Stock-based compensation | 18,707 | 19,418 | |
Impairment of goodwill | - | 116,000 | |
Acquisition-, disposal- and integration-related | 6,286 | 7,632 | |
Restructuring and related | 10,833 | 11,653 | |
Non-GAAP Adjusted EBITDA | $ 63,985 | $ 120,495 | |
Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook | |||||||||
(unaudited) | |||||||||
Three months ending | Year ending | ||||||||
Range | Range | ||||||||
Revenue ($ millions) | $ 180 | $ 190 | $ 840 | $ 870 | |||||
Gross margin: | |||||||||
GAAP outlook | 42.5 % | 43.7 % | 49.3 % | 50.4 % | |||||
Stock-based compensation | 0.4 % | 0.4 % | 0.3 % | 0.3 % | |||||
Amortization of acquired technology | 4.1 % | 3.9 % | 3.4 % | 3.3 % | |||||
Non-GAAP outlook | 47.0 % | 48.0 % | 53.0 % | 54.0 % | |||||
Adjusted EBITDA ($ millions): | |||||||||
GAAP (loss) income from operations | $ (36.4) | $ (29.4) | $ (17.3) | $ (2.3) | |||||
Depreciation | 3.8 | 3.8 | 15.4 | 15.4 | |||||
Stock-based compensation | 5.4 | 5.4 | 22.0 | 22.0 | |||||
Amortization of acquired intangible assets | 14.7 | 14.7 | 56.9 | 56.9 | |||||
Acquisition-, disposal- and integration-related | 0.4 | 0.4 | 0.6 | 0.6 | |||||
Restructuring and related | 6.1 | 6.1 | 17.4 | 17.4 | |||||
Non-GAAP outlook | $ (6.0) | $ 1.0 | $ 95.0 | $ 110.0 | |||||
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FAQ
What were Ribbon Communications' total revenues for Q4 2022?
How much did Ribbon Communications' revenue decline in 2022?
What is the projected revenue range for Ribbon Communications in Q1 2023?
What were the adjusted EBITDA figures for Q4 2022?
What is the forecast for Ribbon Communications' revenue in 2023?
