The following is a summary of the Ribbon Communications Inc (RBBN) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Ribbon Communications reported Q3 revenue of $210 million, a 3.5% year-over-year increase and a 9% increase quarter-over-quarter.

• Adjusted non-GAAP EBITDA was $30 million, at the top end of guidance.

• Non-GAAP gross margin reached 55%, exceeding expectations.

• Year-to-date, profitability increased by $15 million or 32% on an adjusted EBITDA basis compared to 2023.

Business Progress:

• Notable growth in the Cloud & Edge business, highlighted by significant sales to Verizon which accounted for 15% of overall company sales.

• Expanding presence in the U.S. federal and defense sectors, with year-to-date sales up 60% compared to 2023.

• Strong backing in IP Optical sales in the U.S., primarily among regional and rural broadband providers.

• Key project wins in modernizing U.S. federal voice communication infrastructure and partnerships such as with JSC for IMS voice platforms.

Opportunities:

• Numerous opportunities for market share gain given the competitive shifts in the market and emerging trends in network modernization.

• Potential growth in the secure federal and defense communication market, leveraging Ribbon's secure communication applications.

• Significant opportunities arising from the shifting competitive environment and Microsoft Metaswitch platform replacements.

Risks:

• Lower year-over-year IP Optical Network sales partly due to the suspension of product sales to Eastern Europe, reflecting geopolitical risks and market access issues.

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