Wed, Apr 30, 4:21 PM (11 days ago)
**Ribbon Communications Inc. (RBBN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $181.3 million, a slight increase of 0.9% YoY. - **Gross Profit:** $82.4 million, a decrease of 10.4% YoY. - **Gross Margin:** 45.4%, down from 51.2% YoY. - **Net Loss:** $26.2 million, an improvement from $30.4 million YoY. - **Cash Flow:** Negative $3.5 million from operations, a significant decrease from $13.1 million YoY. **Segment Performance:** - **Cloud and Edge:** Revenue up 5.9% YoY to $107.6 million, gross margin at 61.5%. - **IP Optical Networks:** Revenue down 5.3% YoY to $73.7 million, gross margin at 22.0%. **Operational Metrics:** - **Operating Expenses:** $102.0 million, down from $105.4 million YoY. - **R&D Expenses:** $43.6 million, down 4.8% YoY. - **Sales and Marketing:** $31.8 million, down 8.4% YoY. - **General and Administrative:** $15.1 million, relatively flat YoY. - **Interest Expense:** $10.5 million, up significantly from $6.0 million YoY. **Cash Flow and Liquidity:** - **Operating Cash Flow:** Negative $3.5 million, down from $13.1 million YoY. - **Investing Cash Flow:** Negative $12.1 million, up from $2.7 million YoY. - **Financing Cash Flow:** Negative $1.8 million, down from $5.8 million YoY. - **Cash Position:** $74 million, down from $90 million YoY. **Future Operations Impact:** - **Restructuring:** Ongoing cost reduction initiatives, with $5.3 million in restructuring expenses in Q1 2025. - **Debt:** $347.4 million outstanding under the 2024 Term Loan, with an average interest rate of 10.6%. - **Uncertainties:** Geopolitical risks, supply chain disruptions, and economic volatility may impact future performance. **Trends and Uncertainties:** - **Geopolitical Risks:** Wars in Israel and Ukraine, U.S. tariffs, and global economic conditions pose significant risks. - **Supply Chain:** Ongoing disruptions may affect product delivery and costs. - **Economic Conditions:** Inflation, interest rates, and trade restrictions could impact revenue and operating costs. **Future Outlook:** - **Revenue Growth:** Expected increase in 2025 due to growth in Cloud & Edge and IP Optical segments. - **Cost Management:** Continued focus on cost reduction and operational efficiency. - **Cash Flow:** Anticipated improvement in operating cash flow, supported by available borrowings under the 2024 Credit Facility.