Ribbon Communications (RBBN) Tops Q4 EPS by 1c, Revenues Beat
Ribbon Communications (NASDAQ: RBBN) reported Q4 EPS of $0.26, $0.01 better than the analyst estimate of $0.25. Revenue for the quarter came in at $173 million versus the consensus estimate of $170.72 million.
"Ribbon Communications delivered a very successful 2018, exceeding our strategic and financial objectives for the year. During 2018, we extended our leadership in virtualized software solutions and expanded our addressable enterprise market. We further completed a major milestone to integrate our business, thereby reducing our cost structure and significantly improving our profitability," said Fritz Hobbs, President and Chief Executive Officer of Ribbon Communications. "We are excited to enter 2019 with a strong software product line-up, numerous new market opportunities and a robust financial profile."
Fourth Quarter 2018 Financial Highlights1,2,3
- GAAP total revenue was $167 million, compared with $152 million in the third quarter of 2018 and $146 million in the comparable period a year ago.
- Non-GAAP total revenue was $173 million, compared with $159 million in the third quarter of 2018 and $169 million in the comparable period a year ago.
- GAAP net loss was $2 million, compared with $10 million in the third quarter of 2018 and $16 million in the comparable period a year ago.
- Non-GAAP net income was $28 million, compared with $23 million in the third quarter of 2018 and $23 million in the comparable period a year ago.
- GAAP loss per share was $0.02, compared with $0.10 in the third quarter of 2018 and $0.18 in the comparable period a year ago.
- Non-GAAP diluted earnings per share was $0.26, compared with $0.21 in the third quarter of 2018 and $0.27 in the comparable period a year ago.
- Non-GAAP Adjusted EBITDA was $34 million, compared with $29 million in the third quarter of 2018 and $28 million in the comparable period a year ago.
- Cash and investments were $51 million at December 31, 2018, compared with $43 million at the end of the third quarter of 2018 and $83 million at fiscal year-end 2017.
FY 2018 Financial Highlights1,2,3
- GAAP total revenue was $578 million, compared to $330 million in 2017.
- Non-GAAP total revenue was $612 million, compared to $353 million in 2017.
- GAAP net loss was $77 million, compared to $35 million in 2017.
- GAAP loss per share was $0.74, compared to $0.60 in 2017.
- Non-GAAP diluted earnings per share was $0.58, compared to $0.51 in 2017.
- Non-GAAP Adjusted EBITDA was $84 million, compared to $41 million in 2017.
"Fourth quarter non-GAAP Revenue was $173 million and Adjusted EBITDA was $34 million, which represented a growth of 9 percent and 18 percent, respectively, compared with the third quarter of 2018. Full year 2018 non-GAAP Revenue grew to $612 million and Adjusted EBITDA increased to $84 million," said Daryl E. Raiford, Chief Financial Officer of Ribbon Communications. "For 2019, we expect Adjusted EBITDA to be between $100 million and $110 million, or approximately 25 percent growth from 2018.3 Looking to 2019, we are confident that we have the products, market position, expansive global reach and proven team and we believe we can capture share in both our service provider and enterprise markets."
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