Company profile

Ticker
RBBN
Exchange
CEO
Bruce William McClelland
Employees
Incorporated in
Location
Fiscal year end
Former names
Solstice Sapphire Investments, Inc., Sonus Networks, Inc.
SEC CIK

RBBN stock data

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FINRA relative short interest over last month (20 trading days) ?

Calendar

8 May 20
4 Jun 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Revenue 157.98M 161.11M 137.65M 145.42M
Net income -33.17M -150.36M 1.65M 49.47M
Diluted EPS -0.27 -1.36 0.01 0.45
Net profit margin -21.00% -93.33% 1.20% 34.02%
Operating income -28.74M -148.82M 2.69M -7.1M
Net change in cash 52.19M 4.25M -10.79M 7.25M
Cash on hand 96.83M 44.64M 40.4M 51.19M
Cost of revenue 76.41M 60.16M 58.78M 64.75M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 563.11M 577.91M 329.94M 252.59M
Net income -130.08M -76.81M -35.25M -13.93M
Diluted EPS -1.19 -0.74 -0.6 -0.28
Net profit margin -23.10% -13.29% -10.68% -5.52%
Operating income -189.46M -65.41M -55.23M -13.61M
Net change in cash 949K -13.38M 25.15M -18.19M
Cash on hand 44.64M 43.69M 57.07M 31.92M
Cost of revenue 246.03M 269.57M 128.45M 84.98M

Financial data from company earnings reports

Date Owner Security Transaction Code $Price #Shares $Value #Remaining
15 May 20 Daryl Raiford Common Stock Sell Dispose S 3.242 4,083 13.24K 186,406
15 May 20 Steven M Bruny Common Stock Sell Dispose S 3.2408 3,806 12.33K 107,135
15 May 20 Eric S Marmurek Common Stock Sell Dispose S 3.2408 1,095 3.55K 38,344
13 May 20 Bruce William McClelland Common Stock Buy Aquire P 3.25 10,000 32.5K 85,575
13F holders
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13F shares
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Total value 0 0
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Total puts 0 0
Total calls 0 0
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Financial report summary

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Competition
ADTRANCienaAudioCodesInfineraMitel Networks
Risks
  • Completion of the pending ECI Merger is subject to conditions and may not be consummated on the terms or timeline currently contemplated, if at all.
  • Combining Ribbon and ECI may be more difficult, costly or time-consuming than expected and the anticipated benefits and cost savings of the pending ECI Merger may not be realized.
  • The announcement and pendency of the ECI Merger may adversely affect our business, financial condition and results of operations.
  • Our quarterly revenue and operating results are unpredictable and may fluctuate significantly from quarter to quarter, which could adversely affect our business, results of operations and the trading price of our common stock.
  • We have incurred net losses and may incur additional net losses.
  • If we fail to compete successfully against telecommunications equipment and networking companies, our ability to increase our revenue and achieve profitability will be impaired.
  • We will not be successful if we do not grow our customer base or if we are unable to generate recurring business from our existing customers.
  • Third parties may terminate or alter existing contracts or relationships with us.
  • Consolidation in the telecommunications industry could harm our business.
  • Restructuring activities could adversely affect our ability to execute our business strategy.
  • We are exposed to the credit risk of some of our customers and to credit exposures in fragile financial markets, which could result in material losses.
  • Disruptions to, or our failure to effectively develop relationships with and manage, distributors, resellers, system integrators and other channel partners, and the processes and procedures that support them, could adversely affect our ability to generate revenue from the sale of our products and services.
  • If our strategic plan, including our research and development of innovative new products and the improvement of existing products, is not aligned with our customers’ investments in the evolution of their networks, or if our products and services do not meet customers’ demands, customers may not buy our products or use our services.
  • If our products do not interoperate with our customers' existing networks, we may not retain current customers or attract new customers.
  • We believe the telecommunications industry is in the early stages of a major architectural shift to the virtualization of networks. If the architectural shift does not occur, if it does not occur at the pace we predict, or if the products and services we have developed are not attractive to our customers after such shift takes place, our revenue could decline.
  • Virtualization of our product portfolio could slow our revenue growth.
  • The market for some of our products depends on the availability and demand for other vendors' products.
  • Failure by our strategic partners or by us in integrating products provided by our strategic partners could harm our business.
  • Our large customers have substantial negotiating leverage, and they may require that we agree to terms and conditions that may have an adverse effect on our business.
  • We depend upon contract manufacturers. If our contract manufacturers fail to perform, or if we change or consolidate manufacturers, we may fail to meet the demands of our customers and damage our customer relationships, which could materially adversely affect our business.
  • We and our contract manufacturers rely on single or limited sources for supply of some components of our products and if we fail to adequately predict our manufacturing requirements or if our supply of any of these components is disrupted, we will be unable to ship our products in a timely manner, or at all.
  • If we are unable to obtain necessary licenses or on-going maintenance and support of third-party technology at acceptable prices, on acceptable terms, or at all, it could harm our operating results or business.
  • The appliance products that we purchase from our third-party vendors have life cycles, and some of those products have reached the end of their life cycles. If we are unable to correctly estimate future requirements for these products, it could harm our operating results or business.
  • Because our larger scale products are sophisticated and designed to be deployed in complex networks around the world, they may have errors or defects that we find only after full deployment. These defects, and any failure to establish a support infrastructure and maintain required support levels, could seriously harm our business.
  • Disruptions to, or our failure to effectively develop, manage and maintain our government customer relationships could adversely affect our ability to generate revenue from the sales of our products to these customers. Further, such government sales are subject to potential delays and cutbacks, may require specific testing efforts, or impose significant compliance obligations.
  • If we fail to realize the anticipated benefits from any recent acquisitions, such as our acquisition of Edgewater Networks, Inc. ("Edgewater") in August 2018 (the "Edgewater Acquisition") and Anova Data, Inc. (“Anova”) in February 2019 (the “Anova Acquisition”), on a timely basis, or at all, our business and financial condition may be adversely affected.
  • Any future investments, mergers or acquisitions we make or enter into, as applicable, could be difficult to integrate, disrupt our business, dilute shareholder value and seriously harm our financial condition.
  • Failure to hire and retain key personnel, or the loss of any of our executive officers, could negatively impact our ability to meet our business objectives and impair our future growth.
  • The terms of our credit agreement could adversely affect our operating flexibility and pose risks of default or springing maturity, which would negatively impact our liquidity and operations.
  • Litigation and government investigations could result in significant legal expenses and settlement payments, fines or damage awards.
  • A breach of the security of our information systems or those of our third-party providers could adversely affect our operating results.
  • Risks associated with data privacy issues, including evolving laws, regulations and associated compliance efforts, may adversely impact our business and financial results.
  • Worldwide efforts to contain capital spending and global economic conditions and uncertainties in the geopolitical environment have been and may continue to be materially adverse to our business.
  • If there is increased spending by service providers to invest in the rollout of 5G networks and services, such investment could negatively impact decisions by service providers to invest in markets in which Ribbon offers its products and solutions.
  • Man-made problems, such as terrorism, and natural catastrophic events may disrupt our operations and harm our operating results.
  • If we fail to maintain appropriate internal controls in the future, we may not be able to report our financial results accurately, which may adversely affect our stock price and our business.
  • Changes to existing accounting pronouncements or taxation rules or practices may cause adverse fluctuations in our reported results of operations or affect how we conduct our business.
  • If our goodwill or intangible assets become impaired, we may be required to record a significant charge to earnings.
  • Our business could be jeopardized if we are unable to protect our intellectual property. Additionally, in some jurisdictions, our rights may not be as strong as we currently enjoy in the United States.
  • Claims that our current or future products infringe or misappropriate the proprietary rights of others could adversely affect our ability to sell those products and cause us to incur additional costs.
  • We may face risks associated with our international expansion that could impair our ability to grow our international revenue. If we fail to manage the operational and financial risks associated with our international operations, it could have a material adverse effect on our business and results of operations.
  • Increases in tariffs, trade restrictions or taxes on our products, as well as other risks of international operations, could have an adverse impact on our operations.
  • We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows.
  • Our business and operations in the United Kingdom are exposed to potential disruptions and uncertainty relating to Brexit.
  • Our use and reliance upon research and development resources in global locations may expose us to unanticipated costs and/or liabilities.
  • Failure to comply with the Foreign Corrupt Practices Act or the U.K. Bribery Act could subject us to significant civil or criminal penalties.
  • We are subject to governmental export and import controls that could subject us to liability, require a license from the U.S. government or impair our ability to compete in international markets.
  • Regulation of the telecommunications industry, or changes in governmental regulation, interpretation or legislative reform could harm our operating results and future prospects.
  • Our stock price has been and may continue to be volatile.
  • We entered into a stockholders’ agreement with certain GENBAND stockholders in connection with the consummation of the Sonus and GENBAND merger, which provided such stockholders with certain rights that may differ from the rights of
  • our other stockholders. Such GENBAND stockholders may decide to sell their shares in bulk or from time to time, which timing we cannot control.
  • Delaware law and our charter documents contain provisions that could discourage or prevent a potential takeover, even if such a transaction would be beneficial to our stockholders.
Management Discussion
  • Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations
  • We are a leading provider of next generation software solutions to telecommunications, wireless and cable service providers and enterprises of all sizes across industry verticals. With the March 3, 2020 completion of the merger with ECI Telecom Group Ltd ("ECI"), we now also provide optical and packet networking products and software-defined solutions to service providers and critical infrastructure sectors like utilities, government and defense. With over 1,000 customers around the globe, including some of the largest telecommunications service providers, enterprises and utilities in the world, we enable our customers to evolve and modernize their communications networks and packet optical networking infrastructures through software and hardware. By securing and enabling reliable and scalable Internet Protocol ("IP") and packet optical networks, we help our customers adopt the next generation of software-, cloud- and edge-based technologies to drive new, incremental revenue, while protecting their existing revenue streams. Our software solutions provide a secure way for our customers to connect and leverage multivendor, multiprotocol communications systems and applications across their networks and the cloud, in a rapidly changing ecosystem of IP-enabled devices, such as smartphones and tablets. In addition, our software solutions secure cloud-based delivery of unified communications ("UC") solutions - both for service providers transforming to a cloud-based network and for enterprises using cloud-based UC - and support the increasing demand on network infrastructure created by ongoing IP traffic growth and the forecast demand and build-outs to be created by increased traffic from 5G applications and devices. We sell our products and solutions through both direct sales and indirect channels, leveraging the assistance of resellers, and provide ongoing support to its customers through a global services team with experience in design, deployment and maintenance of some of the world's largest software IP networks.
  • In December 2019, a novel strain of the coronavirus (COVID-19) was reported to have been detected in Wuhan, China and on March 11, 2020, it was declared by the World Health Organization to be a global pandemic. The COVID-19 pandemic has had a negative effect on the global economy, disrupting the various manufacturing, commodity and financial markets and increasing volatility, and has impeded global supply chains, including that of our recently acquired subsidiary, ECI. Dampened global economic conditions as a result of the COVID-19 pandemic may cause our customers to restrict spending or delay purchases for an indeterminate period of time and consequently cause our revenues to decline. In addition, our ability to deliver our solutions as agreed upon with our customers depends on the ability of our global contract manufacturers, vendors, licensors and other business partners to deliver products or perform services we have procured from them. If the COVID-19 pandemic impairs the ability of our business partners to support us on a timely basis, or negatively impacts the demand for our customers' other products and services, our ability to perform our customer contracts as well as the demand for our solutions may suffer. In addition, disruptions from the COVID-19 pandemic could include, and with respect to ECI have included, disruption of logistics necessary to import, export and deliver our solutions. The COVID-19 pandemic may also place limitations on the ability of our associates to perform their work due to illness caused by the pandemic or local, state or federal orders requiring associates to remain at home. Concerns over the economic impact of the COVID-19 pandemic have also caused extreme volatility in financial and other capital markets which has and may continue to adversely impact our stock price. Such volatility may also adversely impact our ability to access capital markets if and when we would be required to do so. The degree to which the COVID-19 pandemic ultimately impacts our business, financial position and results of operations will depend on
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