Ribbon Communications reported Q1 2024 revenue of $180 million, compared to $186 million for the first quarter of 2023. First quarter 2024 GAAP Loss from Operations improved $22 million year over year, and Non-GAAP Adjusted EBITDA improved $14 million to $12 million. GAAP and Non-GAAP Gross Margin improved over 700 basis points year over year.
"I am very pleased with the improvement in our profitability year over year, exceeding the high end of our guidance. Sales in the EMEA region were strong across Service Provider and Critical Infrastructure markets, growing 24% year over year," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications.
"Sales in our IP Optical Networks segment increased year over year for the seventh consecutive quarter, up 9% over the previous year. Lower product costs and strong regional mix contributed to the gross margin being above 40% for the segment once again," Mr. McClelland added. "While Cloud & Edge sales were down in the first quarter, we believe we have reached a low point in U.S. Tier One Service Provider spending. We expect the new multi-year Verizon Network Modernization program announced today, recovery in broader Service Provider spending, and continued growth in Enterprise, including new U.S. Federal projects, to return our Cloud & Edge segment to growth."
For the second quarter of 2024, the company projects revenue of $200 million to $210 million. Non-GAAP gross margin is projected in a range of 53.5% to 54.5%. Adjusted EBITDA is projected in a range of $20 million to $25 million.
Separately, Ribbon reported a major network modernization contract with Verizon to retire legacy TDM switching platforms and replace their function with modern cloud-based technologies. Verizon is leveraging Ribbon's portfolio of Voice Products including the vC20 Call Controller, G5 Line Access Gateway, G6 Universal Media Gateway, virtual and Cloud-native Session Border Controllers, and other products which allows for the consolidation and replacement of equipment with energy efficient, software-centric platforms while maintaining full feature functionality.
"Our continuous goal at Verizon is to provide the most advanced technologies for our customers while simultaneously improving our cost of operations and advance our sustainability efforts in power consumption," said Eric Lia, Senior Vice President of Engineering at Verizon. "These network upgrades will allow us to rapidly decommission legacy central office equipment while improving overall quality and reliability of service, and reducing our environmental footprint."
