Ribbon Communications reports Q3 non-GAAP EPS 5c, consensus 7c

Reports Q3 revenue $203M, consensus $219.64M. “Ribbon delivered solid earnings in Q3 as GAAP Income from Operations improved by $4M and Non-GAAP Adjusted EBITDA increased 21% year over year. IP Optical Networks sales have increased 14% year-to-date and were up 6% in Q3 with approximately 50% sales growth in India, the U.S., and Japan. However, IP Optical Networks sales in the EMEA region were approximately 20% lower in the quarter. Strategically, we went into live commercial service with our Neptune IP Router at a U.S. Tier One Service Provider this quarter. Cloud & Edge sales were lower primarily due to reduced spending from U.S. Tier One Service Providers, offset by additional voice modernization sales to U.S. Federal agencies,” stated Bruce McClelland, CEO. “For Q4, we anticipate a strong finish to the year led by sequential growth in both the IP Optical Networks and Cloud & Edge segments. We expect to achieve our goal of positive Non-GAAP Adjusted EBITDA for the IP Optical Networks segment in Q4.”