Ribbon Communications Inc. ReportsFourth Quarter and Full Year 2024 Financial Results

　　Ribbon Communications Inc. (Nasdaq: RBBN), a prominent supplier of realtime communications technology and IP optical networking solutions, today announced itsfinancial results for the fourth quarter and the full year of 2024. Ribbon Communications isdedicated to assisting the world's largest service providers, enterprises, and criticalinfrastructure operators in modernizing and safeguarding their networks and services.

　　Revenue for the fourth quarter of 2024 was $251 million, compared to $226 million for thefourth quarter of 2023 and $210 million for the third quarter of 2024. GAAP OperatingIncome was $33 million, compared to $17 million for the fourth quarter of 2023. QuarterlyNon-GAAP Adjusted EBITDA increased by 30% year over year to $55 million, or 22% ofsales.

　　For the full year 2024, Revenue was $834 million, compared to $826 million for the fullyear 2023. GAAP Operating Income was $17 million, compared to a loss of ($24) millionfor 2023. Non-GAAP Adjusted EBITDA improved by 31% to $119 million, or 14% of sales.GAAP and Non-GAAP Gross Margins for the full year increased approximately 300 basispoints to 53% and 56% respectively, with improvement in both operating segments.

　　“Our fourth quarter results were very strong across all key financial metrics, achievingrecord levels of revenue, near the top end of our guidance, and profitability, exceedingour guidance. We believe this is a clear validation of our strategy and a culmination of theeffort over the last several years to diversify and drive profitable growth in both ServiceProvider and Enterprise markets,” stated Bruce McClelland, President and Chiefexecutive Officer of Ribbon Communications.

　　“Revenue growth was underpinned by higher sales to U.S. Tier One Service Providers,U.S. Federal Defense agencies, and Enterprise customers. We also had solid contributionfrom U.S. Rural Broadband, Europe, and India. When combined with robust margins andour continued operational expense control, profitability improved more than 30%compared to 2023,” Mr. McClelland added. “It is especially satisfying to generateAdjusted EBITDA for the full year at the high end of our original guidance range despitethe suspension of shipments to Eastern Europe. Our visibility has improved, and weanticipate further momentum in 2025 as the industry-wide focus on networkmodernization and the investment in fiber networks drives a strong growth cycle.”

　　“The fourth quarter was a very strong finish for Ribbon and capped off a transformative year for the business.Improved earnings generation enabled us to successfully refinance our credit facility earlier in the year, andmomentum accelerated with the launch of the voice network modernization program with Verizon. Increased businessacross both Enterprise and Service Providers resulted in a record level of sales in the fourth quarter along with abook-to-bill of 1.1x times. Cash from operations benefitted from higher collections, resulting in a year-end cashposition of $90 million. I’m very excited about our growth prospects for 2025,” said John Townsend, Chief FinancialOfficer of Ribbon Communications.

　　For 2025, the Company expects profitable growth in both operating segments, with continued momentum fromnetwork modernization across Service Providers, Enterprise, and Federal and Defense customers. We expect anormal seasonal pattern with the business accelerating as the year progresses.

　　For the full year 2025, the Company projects revenue of $870 million to $890 million. Non-GAAP gross margin isprojected in a range of 54% to 55%. Adjusted EBITDA is projected in a range of $130 million to $140 million.

　　For the first quarter of 2025, the Company projects revenue of $185 million to $195 million. Non-GAAP gross marginis projected in a range of 53% to 53.5%. Adjusted EBITDA is projected in a range of $12 million to $18 million.

　　The Company’s outlook is based on current indications for its business, which are subject to change.