Ribbon Communications reports Q2 non-GAAP EPS 5c, consensus 5c

Reports Q2 revenue $193M, consensus $204.97M. “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 Q2 was impacted by a large U.S. Federal deal that was delayed to Q3. 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 CEO Bruce McClelland. “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 FY24 guidance slightly to reflect a more conservative outlook for the Eastern European region for the rest of the year.”