Ribbon Communications (RBBN) Tops Q4 EPS by 4c; Offers FY21 EPS/Revenue Guidance Above Consensus, Provides 1Q EPS/Revenue Outlook

February 17, 2021 4:05 PM EST
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Price: $8.45 -0.24%

EPS Growth %: +100.0%

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Ribbon Communications (NASDAQ: RBBN) reported Q4 EPS of $0.18, $0.04 better than the analyst estimate of $0.14. Revenue for the quarter came in at $244 million versus the consensus estimate of $246.38 million.

Revenue for the fourth quarter of 2020 was $244 million, compared to $161 million for the fourth quarter of 2019, an increase of 52%. Revenue for 2020 was $844 million, compared to $563 million in 2019, an increase of 50%. Approximately $89 million of the year-over-year revenue increase in the fourth quarter and $261 million of the increase in 2020 was attributable to the Company\'s acquisition of ECI Telecom Group, Ltd. (ECI), which closed on March 3, 2020.

"We are very pleased with our fourth quarter results, in particular our second consecutive quarter of record adjusted EBITDA as we benefitted from strong sales and gross margins, along with efficiencies in operating expense," noted Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "We are excited to carry this momentum forward in 2021 as we continue to focus on growing our IP Optical sales and improving overall profitability."

"This was an exceptional year from a cash perspective," said Mick Lopez, Chief Financial Officer of Ribbon Communications. "Our performance once again demonstrated strong focus and execution as we ended the year on a high note with strong growth and profitability."

GUIDANCE:

Ribbon Communications sees Q1 2021 EPS of $0.01-$0.03, versus the consensus of $0.02. Ribbon Communications sees Q1 2021 revenue of $190-200 million, versus the consensus of $196.62 million.

Ribbon Communications sees FY2021 EPS of $0.49-$0.54, versus the consensus of $0.46. Ribbon Communications sees FY2021 revenue of $925-945 million, versus the consensus of $911 million.

The Company's outlook is based on current indications for its business, which are subject to change. For the first quarter of 2021, the Company projects revenue of $190 million to $200 million, non-GAAP gross margin of 55% to 56%, non-GAAP earnings per share of $0.01 to $0.03, and Adjusted EBITDA of $14 million to $18 million. For the full year 2021, the Company projects revenue of $925 million to $945 million, non-GAAP gross margin of 55% to 56%, non-GAAP earnings per share of $0.49 to $0.54, and Adjusted EBITDA of $145 million to $155 million. The current outlook assumes no worsening of conditions related to the COVID-19 pandemic.

For earnings history and earnings-related data on Ribbon Communications (RBBN) click here.



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