Ribbon Communications reported Q3 revenue of $207 million, compared to $210 million for the third quarter of 2021 and $206 million for the second quarter of 2022. Product and service bookings-to-revenue was 1.28x in the third quarter of 2022, with IP Optical Networks at 1.45x.
"I am excited to share the significant progress we have made this quarter towards improving the fundamentals of our IP Optical Networks business. In many ways this was a record quarter, with revenue plus bookings for the IP Optical Networks segment handily exceeding previous levels," noted Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "This resulted in a significant improvement in gross margin and a major step toward profitability for the segment. We also received a significant validation of our IP Routing strategy with a major new 5G Cell Site Router win in India this quarter."
McClelland continued, "Overall results for the quarter were impacted by the timing of several U.S. Federal Cloud & Edge deals and delays of several shipments the last few days of the quarter. We continue to anticipate a sequentially stronger fourth quarter in both of our businesses supported by increased backlog entering the quarter, although we are taking a more cautious approach and have reduced our growth expectations given the macro-operating environment.
Customer and Company Highlights
- Awarded 5G Cell Site Router deal with top tier mobile carrier in India
- Appointed Scott Mair, former President, AT&T Networks Engineering and Operations, to Ribbon Board of Directors
- Verizon and AT&T were greater than 10% customers in the third quarter
- Ribbon selected by Electricity Transmission Operator MEPSO for Network Modernization project
- Paritel selected Ribbon to comply with French government mandate to combat Robocall, Fraud and Call Spoofing
- Ribbon launched Microsoft Teams Enablement Bundle with Poly and TD SYNNEX
- Ribbon SBC received certification supporting Google Voice SIP interoperability
