Ribbon Communications Releases First Quarter 2019 Financial Results
"We continued to make solid progress on delivering our core solutions for our session software products while expanding market share. We also had a number of accomplishments during the quarter involving some of the world's largest telecom service providers that validate the traction we are making with our cloud solutions," said Fritz Hobbs, President and Chief Executive Officer of Ribbon Communications. "We are pleased that our balance sheet and cash flow will enable us to return value to stockholders through a stock repurchase program, while at the same time continue to invest in internal and external opportunities that we believe will further drive long-term growth."
First Quarter 2019 Financial Highlights1
- GAAP total revenue was
$119 million , compared with$121 million in the first quarter of 2018. - Non-GAAP total revenue was
$122 million , compared with$135 million in the first quarter of 2018. - GAAP net loss was
$31 million , compared with a net loss of$45 million in the first quarter of 2018. - Non-GAAP net loss was
$6 million , compared with a net loss of$4 million in the first quarter of 2018. - GAAP loss per share was
$0.29 , compared with a loss per share of$0.44 in the first quarter of 2018. - Non-GAAP loss per share was
$0.05 , compared with a loss per share of$0.04 in the first quarter of 2018. - Non-GAAP Adjusted EBITDA was break-even, compared with
$1 million in the first quarter of 2018. - Cash and investments were
$46 million at the end of the first quarter of 2019, compared with$51 million at the end of the fourth quarter of 2018.
1 Please see the reconciliation of non-GAAP and GAAP financial measures, and additional information about non-GAAP measures, in the press release appendix.
"First quarter 2019 results were in line with our expectations that took into account seasonality and relatively soft service provider market conditions," said Daryl Raiford, Chief Financial Officer of Ribbon Communications. "Looking forward, we believe we are well positioned with a strong software product line-up and a solid distribution system around the world, and we remain focused on managing the business to improve efficiencies and increase cash flow. Our amended and restated senior secured credit facility increases our borrowing capacity, lowers our borrowing costs and extends the term through
First Quarter 2019 Customer and Company Highlights
- ExactVentures ranked Ribbon as the number one global market share leader for session border controllers based on fourth quarter 2018 sales, amplifying its existing number one position in the global small and medium enterprise session border controller market.
AT&T launched its AT&T API Marketplace offering for businesses built on Ribbon's Kandy Cloud platform, enablingAT&T to offer turnkey applications and self-service application programming interfaces (APIs) for developers to create custom applications.- KPN, a leading telecom provider in
the Netherlands , is also using the Kandy Cloud platform to offer web-based voice and video capabilities in its API store. - Vodafone New Zealand selected Ribbon solutions and services for a two- year network transformation project to modernize its network.
- A leading service provider in
Japan chose Ribbon session software for interconnecting networks and voice traffic. - One of our tier one U.S.-based service provider customers continued to transform and modernize its network using Ribbon software solutions and services. This customer also continued to expand Ribbon session deployments for network interconnects.
- Three major managed service providers continued to deploy Ribbon edge solutions to enterprises that enhance end users' quality of experience for unified communications.
Stock Repurchase Program
Ribbon's Board of Directors has authorized a stock repurchase program for up to
New Amended and Restated Credit Agreement and Retirement of Acquisition Debt
On
Business Outlook
Ribbon expects non-GAAP Adjusted EBITDA of approximately
2 Please see the reconciliation of non-GAAP and GAAP financial measures, and additional information about non-GAAP measures, in the press release appendix.
Conference Call Details
Ribbon will offer a live, listen-only webcast of the conference call to discuss its financial results for the first quarter ended
Conference call details:
Date:
Time:
Dial-in number (Domestic): 888-227-5857
Dial-in number (Intl): +1-303-223-4373
Replay information:
A telephone playback of the call will be available following the conference call until
Investor Relations
+1 (212) 871-3927
IR@rbbn.com
+1 (214) 695-2214
dwatson@rbbn.com
+1 (646) 741-1974
cberthier@rbbn.com
Industry Analyst Relations
+1 (708) 383-3387
mcooper@rbbn.com
About
Important Information Regarding Forward-Looking Statements
The information in this release contains "forward-looking" statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts contained in this release, including without limitation statements made by our chief executive officer and our chief financial officer regarding our anticipated financial performance, statements in the sections "First Quarter 2019 Financial Highlights", "Stock Repurchase Program", "New Amended and Restated Credit Agreement and Retirement of Acquisition Debt", and "Business Outlook" statements regarding our future expenses, results of operations and financial position, integration activities, potential stock repurchases, business strategy, strategic position, plans and objectives of management for future operations and plans for future product development and manufacturing, are forward- looking statements. Without limiting the foregoing, the words "believes", "estimates", "expects", "expectations", "intends", "may", "plans", "projects" and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated in these forward-looking statements due to various risks, uncertainties and other important factors, including our ability to realize benefits from acquisitions that we have completed; the effects of disruption from acquisitions, making it more difficult to maintain relationships with employees, customers, business partners or government entities; the timing of customer purchasing decisions and our recognition of revenues; economic conditions; our ability to recruit and retain key personnel; difficulties supporting our strategic focus on channel sales; difficulties retaining and expanding our customer base; difficulties leveraging market opportunities; the impact of restructuring and cost-containment activities; litigation; actions taken by significant stockholders; difficulties providing solutions that meet the needs of customers; market acceptance of our products and services; rapid technological and market change; our ability to protect our intellectual property rights; our ability to maintain partner, reseller, distribution and vendor support and supply relationships; higher risks in international operations and markets; the impact of increased competition; increases in tariffs, trade restrictions or taxes on our products; currency fluctuations; changes in the market price of our common stock; and/or failure or circumvention of our controls and procedures.
Our forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. We caution you against relying on any of these forward-looking statements. For further information regarding risks and uncertainties associated with
Discussion of Non-GAAP Financial Measures
Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to Ribbon's financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future.
Acquisition-Related Revenue and Cost of Revenue; Impact of New Revenue Standard
We provide the supplementary non-GAAP financial measure of non-GAAP Total revenue, which includes revenue related to the acquisitions of GENBAND and Edgewater that we would have recognized but for the purchase accounting treatment of these transactions. Because GAAP accounting requires the elimination of this revenue, GAAP results alone do not fully capture all of our economic activities. We also include eliminated revenue resulting from our adoption in 2018 of the new revenue recognition standard. Following the 2018 year of adoption of the ASC 606 revenue standard, we are no longer required by GAAP to disclose the adoption effect of such standard. We will no longer include any further increase to non- GAAP revenue arising from the 2018 revenue standard adoption commencing with our first quarter 2019 financial results. These non-GAAP adjustments are intended to reflect the full amounts of such revenue and the related cost of revenue. We include these adjustments to allow for more complete comparisons to the financial results of our historical operations, forward-looking guidance and the financial results of peer companies. We believe these adjustments are useful to management and investors as a measure of the ongoing performance of the business. These adjustments do not accelerate revenue, but instead include revenue (and the related cost of revenue) that would have been recognized in our results, but for the purchase accounting and new revenue standard adjustments required by GAAP.
Stock-Based Compensation
Stock-based compensation expense is different from other forms of compensation, as it is a non-cash expense. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity- based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to us is based on a stock-based compensation valuation methodology, subjective assumptions and the variety of award types, all of which may vary over time. We evaluate performance without these measures because stock-based compensation expense is influenced by the Company's stock price and other factors such as volatility and interest rates that are beyond our control. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, we do not include such charges in our operating plans, and we believe that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into our management's method of analysis and the Company's core operating performance. It is reasonable to expect that stock-based compensation will continue in future periods.
Amortization of Intangible Assets
We exclude the amortization of acquired intangible assets from non-GAAP expense and income measures. These amortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that intangible assets contribute to revenue generation. We believe that excluding the non-cash amortization of intangible assets facilitates the comparison of our financial results to our historical operating results and to other companies in our industry as if the acquired intangible assets had been developed internally rather than acquired. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
Acquisition-Related Facilities Adjustments
GAAP accounting requires that the deferred rent liability of an acquired company be written off as part of purchase accounting and that the combined company's rent expense on a straight-line basis begin as of the acquisition date. As a result, we recorded more rent expense than would have been recognized but for the purchase accounting treatment of GENBAND's assumed deferred rent liability. We include this adjustment, which relates to the acquisition of GENBAND, to allow for more complete comparisons to the financial results of our historical operations, forward-looking guidance and the financial results of peer companies. We believe these adjustments provide an indication of the rent expense that would have been recognized, but for the purchase accounting in connection with the acquisition of GENBAND.
Settlement Expense
In the first quarter of 2018, we recorded
Litigation Costs
In connection with certain ongoing litigation between GENBAND, as plaintiff, and one of its competitors, we have incurred litigation costs beginning in the fourth quarter of 2017. In
Cancelled Debt Offering Costs
In
Acquisition- and Integration-Related Expense
We consider certain acquisition- and integration-related costs to be unrelated to the organic continuing operations of our acquired businesses and the Company and they are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In addition, the size, complexity and/or volume of an acquisition, which often drives the magnitude of acquisition- and integration-related costs, may not be indicative of future acquisition- and integration- related costs. By excluding these acquisition- and integration-related costs from our non-GAAP measures, management is better able to evaluate our ability to utilize our existing assets and estimate the long-term value that acquired assets will generate for us. We exclude certain acquisition- and integration-related costs to allow more accurate comparisons of our financial results to our historical operations, forward-looking guidance and the financial results of less acquisitive peer companies. In addition, we believe that providing supplemental non-GAAP measures that exclude these items allows management and investors to consider the ongoing operations of the business both with and without such expenses.
Restructuring
We have recorded restructuring expense to streamline operations and reduce operating costs by losing and consolidating certain facilities and reducing our worldwide workforce. We review our restructuring accruals regularly and record adjustments to these estimates as required. We believe that excluding restructuring expense facilitates the comparison of our financial results to our historical operating results and to other companies in our industry, as there are no future revenue streams or other benefits associated with these costs.
Reduction in Deferred Purchase Consideration
We recorded
Income Tax Adjustments Arising from Purchase Accounting
In the fourth quarter of 2018, we recorded an adjustment of
Adjusted EBITDA
We use Adjusted EBITDA as a supplemental measure to review and assess our performance. We calculate Adjusted EBITDA by excluding from net income (loss): interest income (expense), net; income tax benefit (provision); depreciation; and amortization of intangible assets. In addition, we exclude from net income (loss): adjustments to revenue and cost of revenue related to revenue reductions resulting from purchase accounting and adoption of the new revenue standard; stock-based compensation expense; acquisition-related facilities adjustments; settlement expense; certain litigation costs; acquisition- and integration-related expense; restructuring; and other income, net. In general, we add back the expenses that we consider to be non-cash and/or not part of our ongoing operations. Adjusted EBITDA is a non-GAAP financial measure that is used by our investing community for comparative and valuation purposes. We disclose this metric to support and facilitate our dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
We believe that providing non-GAAP information to investors, in addition to the GAAP presentation, will allow investors to view the financial results in the way management views them. We further believe that providing this information helps investors to better understand our core financial and operating performance and evaluate the efficacy of the methodology and information used by our management to evaluate and measure such performance.
RIBBON COMMUNICATIONS INC. |
||||||||
Consolidated Statements of Operations |
||||||||
(in thousands, except percentages and per share amounts) |
||||||||
(unaudited) |
||||||||
Three months ended |
||||||||
March 31, |
December 31, |
March 31, |
||||||
2019 |
2018 |
2018 |
||||||
Revenue: |
||||||||
Product |
$ 47,480 |
$ 87,077 |
$ 51,531 |
|||||
Service |
71,448 |
79,819 |
69,649 |
|||||
Total revenue |
118,928 |
166,896 |
121,180 |
|||||
Cost of revenue: |
||||||||
Product |
33,147 |
40,002 |
33,014 |
|||||
Service |
29,192 |
31,180 |
32,893 |
|||||
Total cost of revenue |
62,339 |
71,182 |
65,907 |
|||||
Gross profit |
56,589 |
95,714 |
55,273 |
|||||
Gross margin: |
||||||||
Product |
30.2% |
54.1% |
35.9% |
|||||
Service |
59.1% |
60.9% |
52.8% |
|||||
Total gross margin |
47.6% |
57.3% |
45.6% |
|||||
Operating expenses: |
||||||||
Research and development |
35,933 |
36,406 |
39,049 |
|||||
Sales and marketing |
30,059 |
34,124 |
31,926 |
|||||
General and administrative |
18,694 |
19,465 |
15,601 |
|||||
Acquisition- and integration-related |
3,199 |
2,689 |
4,412 |
|||||
Restructuring |
4,932 |
1,853 |
6,668 |
|||||
Total operating expenses |
92,817 |
94,537 |
97,656 |
|||||
Income (loss) from operations |
(36,228) |
1,177 |
(42,383) |
|||||
Interest expense, net |
(1,364) |
(1,476) |
(599) |
|||||
Other income (expense), net |
7,774 |
(714) |
248 |
|||||
Loss before income taxes |
(29,818) |
(1,013) |
(42,734) |
|||||
Income tax provision |
(1,014) |
(813) |
(2,170) |
|||||
Net loss |
$ (30,832) |
$ (1,826) |
$ (44,904) |
|||||
Loss per share: |
||||||||
Basic |
$ (0.29) |
$ (0.02) |
$ (0.44) |
|||||
Diluted |
$ (0.29) |
$ (0.02) |
$ (0.44) |
|||||
Shares used to compute loss per share: |
||||||||
Basic |
108,167 |
106,607 |
101,917 |
|||||
Diluted |
108,167 |
106,607 |
101,917 |
RIBBON COMMUNICATIONS INC. |
||||||
Consolidated Balance Sheets |
||||||
(in thousands) |
||||||
(unaudited) |
||||||
March 31, |
December 31, |
|||||
2019 |
2018 |
|||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ 43,938 |
$ 43,694 |
||||
Marketable securities |
1,998 |
7,284 |
||||
Accounts receivable, net |
134,801 |
187,853 |
||||
Inventory |
18,870 |
22,602 |
||||
Other current assets |
20,444 |
17,002 |
||||
Total current assets |
220,051 |
278,435 |
||||
Property and equipment, net |
27,630 |
27,042 |
||||
Intangible assets, net |
250,669 |
251,391 |
||||
Goodwill |
389,196 |
383,655 |
||||
Deferred income taxes |
8,969 |
9,152 |
||||
Operating lease right-of-use assets |
42,166 |
- |
||||
Other assets |
7,368 |
7,484 |
||||
$ 946,049 |
$ 957,159 |
|||||
Liabilities and Stockholders' Equity |
||||||
Current liabilities: |
||||||
Revolving credit facility |
$ 57,000 |
$ 55,000 |
||||
Accounts payable |
37,989 |
45,304 |
||||
Accrued expenses and other |
58,454 |
84,263 |
||||
Operating lease liabilities |
7,214 |
- |
||||
Deferred revenue |
109,283 |
105,087 |
||||
Total current liabilities |
269,940 |
289,654 |
||||
Long-term debt, related party |
24,716 |
24,100 |
||||
Operating lease liabilities, net of current |
39,151 |
- |
||||
Deferred revenue, net of current |
15,793 |
17,572 |
||||
Deferred income taxes |
4,861 |
4,738 |
||||
Other long-term liabilities |
12,525 |
30,797 |
||||
Total liabilities |
366,986 |
366,861 |
||||
Commitments and contingencies |
||||||
Stockholders' equity: |
||||||
Common stock |
11 |
11 |
||||
Additional paid-in capital |
1,743,136 |
1,723,576 |
||||
Accumulated deficit |
(1,167,824) |
(1,136,992) |
||||
Accumulated other comprehensive income |
3,740 |
3,703 |
||||
Total stockholders' equity |
579,063 |
590,298 |
||||
$ 946,049 |
$ 957,159 |
RIBBON COMMUNICATIONS INC. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
Three months ended |
|||||||
March 31, |
March 31, |
||||||
2019 |
2018 |
||||||
Cash flows from operating activities: |
|||||||
Net loss |
$ (30,832) |
$ (44,904) |
|||||
Adjustments to reconcile net loss to cash flows provided by operating activities: |
|||||||
Depreciation and amortization of property and equipment |
2,921 |
2,507 |
|||||
Amortization of intangible assets |
11,922 |
12,309 |
|||||
Stock-based compensation |
4,139 |
2,824 |
|||||
Deferred income taxes |
347 |
528 |
|||||
Foreign currency exchange losses |
352 |
23 |
|||||
Reduction in deferred purchase consideration |
(8,124) |
- |
|||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
53,854 |
39,740 |
|||||
Inventory |
3,692 |
(412) |
|||||
Other operating assets |
(674) |
(2,182) |
|||||
Accounts payable |
(6,999) |
(8,976) |
|||||
Accrued expenses and other long-term liabilities |
(13,095) |
(12,820) |
|||||
Deferred revenue |
2,076 |
14,755 |
|||||
Net cash provided by operating activities |
19,579 |
3,392 |
|||||
Cash flows from investing activities: |
|||||||
Purchases of property and equipment |
(3,766) |
(1,827) |
|||||
Sale/maturities of marketable securities |
5,295 |
245 |
|||||
Net cash provided by (used in) investing activities |
1,529 |
(1,582) |
|||||
Cash flows from financing activities: |
|||||||
Borrowings under revolving line of credit |
37,000 |
10,000 |
|||||
Principal payments on revolving line of credit |
(35,000) |
(10,000) |
|||||
Payment of deferred purchase consideration |
(21,876) |
- |
|||||
Payment of tax withholding obligations related to net share settlements of restricted stock |
(968) |
(370) |
|||||
Other |
(79) |
(130) |
|||||
Net cash used in financing activities |
(20,923) |
(500) |
|||||
Effect of exchange rate changes on cash and cash equivalents |
59 |
206 |
|||||
Net increase in cash and cash equivalents |
244 |
1,516 |
|||||
Cash and cash equivalents, beginning of year |
43,694 |
57,073 |
|||||
Cash and cash equivalents, end of period |
$ 43,938 |
$ 58,589 |
RIBBON COMMUNICATIONS INC. |
|||||
Reconciliation of Non-GAAP and GAAP Financial Measures |
|||||
(in thousands, except per share amounts) |
|||||
(unaudited) |
|||||
Three months ended |
|||||
March 31, |
December 31, |
March 31, |
|||
2019 |
2018 |
2018 |
|||
GAAP Total revenue |
$ 118,928 |
$ 166,896 |
$ 121,180 |
||
Acquisition-related revenue adjustment |
2,798 |
4,613 |
11,118 |
||
Adjustment for new revenue standard** |
- |
1,903 |
3,015 |
||
Non-GAAP Total revenue |
$ 121,726 |
$ 173,412 |
$ 135,313 |
||
GAAP Net loss |
$ (30,832) |
$ (1,826) |
$ (44,904) |
||
Acquisition-related revenue adjustment |
2,798 |
4,613 |
11,118 |
||
Acquisition-related cost of revenue adjustment |
- |
- |
(1,977) |
||
Adjustment for new revenue standard** |
- |
1,903 |
3,015 |
||
Adjustment to cost of revenue for new revenue standard** |
- |
- |
(110) |
||
Stock-based compensation |
4,139 |
3,651 |
2,824 |
||
Amortization of intangible assets |
11,922 |
12,002 |
12,309 |
||
Acquisition-related facilities adjustment |
- |
252 |
211 |
||
Settlement expense |
- |
- |
1,730 |
||
Litigation costs |
6,186 |
1,961 |
673 |
||
Cancelled debt offering costs |
- |
1,003 |
- |
||
Acquisition- and integration-related expense |
3,199 |
2,689 |
4,412 |
||
Restructuring |
4,932 |
1,853 |
6,668 |
||
Reduction in deferred purchase consideration |
(8,124) |
- |
- |
||
Tax benefits arising from purchase accounting and tax reform |
- |
123 |
- |
||
Non-GAAP net income (loss) |
$ (5,780) |
$ 28,224 |
$ (4,031) |
||
Earnings (loss) per share |
|||||
GAAP Loss per share |
$ (0.29) |
$ (0.02) |
$ (0.44) |
||
Acquisition-related revenue adjustment |
0.03 |
0.04 |
0.11 |
||
Acquisition-related cost of revenue adjustment |
- |
- |
(0.02) |
||
Adjustment for new revenue standard** |
- |
0.02 |
0.03 |
||
Adjustment to cost of revenue for new revenue standard** |
- |
- |
* |
||
Stock-based compensation |
0.04 |
0.03 |
0.03 |
||
Amortization of intangible assets |
0.11 |
0.11 |
0.11 |
||
Acquisition-related facilities adjustment |
- |
* |
* |
||
Settlement expense |
- |
- |
0.02 |
||
Litigation costs |
0.06 |
0.02 |
0.01 |
||
Cancelled debt offering costs |
- |
0.01 |
- |
||
Acquisition- and integration-related expense |
0.03 |
0.03 |
0.04 |
||
Restructuring |
0.05 |
0.02 |
0.07 |
||
Reduction in deferred purchase consideration |
(0.08) |
- |
- |
||
Tax benefits arising from purchase accounting and tax reform |
- |
* |
- |
||
Non-GAAP Diluted earnings per share or (loss) per share |
$ (0.05) |
$ 0.26 |
$ (0.04) |
||
Shares used to compute diluted earnings per share or (loss) per share |
|||||
GAAP Shares used to compute loss per share |
108,167 |
106,607 |
101,917 |
||
Non-GAAP Shares used to compute diluted earnings per share or (loss) per share |
108,167 |
107,363 |
101,917 |
||
* Less than $0.01 impact on earnings (loss) per share |
|||||
** Effective Q1 2019, the Company no longer adjusts for the impact of the adoption in 2018 of the new revenue standard |
RIBBON COMMUNICATIONS INC. |
|||||
Reconciliation of Non-GAAP and GAAP Financial Measures |
|||||
(in thousands, except per share amounts) |
|||||
(unaudited) |
|||||
Three months ended |
|||||
March 31, |
December 31, |
March 31, |
|||
2019 |
2018 |
2018 |
|||
Adjusted EBITDA: |
|||||
GAAP Net loss |
$ (30,832) |
$ (1,826) |
$ (44,904) |
||
Interest expense, net |
1,364 |
1,476 |
599 |
||
Income tax provision (benefit) |
1,014 |
813 |
2,170 |
||
Depreciation |
2,921 |
2,930 |
2,507 |
||
Amortization of intangible assets |
11,922 |
12,002 |
12,309 |
||
Acquisition-related revenue adjustment |
2,798 |
4,613 |
11,118 |
||
Acquisition-related cost of revenue adjustment |
- |
- |
(1,977) |
||
Adjustment for new revenue standard* |
- |
1,903 |
3,015 |
||
Adjustment to cost of revenue for new revenue standard* |
- |
- |
(110) |
||
Stock-based compensation |
4,139 |
3,651 |
2,824 |
||
Acquisition-related facilities adjustment |
- |
252 |
211 |
||
Settlement expense |
- |
- |
1,730 |
||
Litigation costs |
6,186 |
1,961 |
673 |
||
Cancelled debt offering costs |
- |
1,003 |
- |
||
Acquisition- and integration-related expense |
3,199 |
2,689 |
4,412 |
||
Restructuring |
4,932 |
1,853 |
6,668 |
||
Other expense (income), net |
(7,774) |
714 |
(248) |
||
Non-GAAP Adjusted EBITDA |
$ (131) |
$ 34,034 |
$ 997 |
||
* Effective Q1 2019, the Company no longer adjusts for the impact of the adoption in 2018 of the new revenue standard |
RIBBON COMMUNICATIONS INC. |
||
Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook |
||
(in millions) |
||
(unaudited) |
||
Adjusted EBITDA: Ribbon has not provided a reconciliation of Adjusted EBITDA for the year ending December 31, 2019, as it is unable to project without unreasonable efforts the comparable GAAP net loss figure, which includes interest expense, net; income tax provision; depreciation; amortization of intangible assets; acquisition-related revenue and related cost of revenue adjustments; stock-based compensation; settlement expense; certain litigation costs; acquisition-related facilities adjustments; acquisition- and integration-related expense; restructuring and other income (expense), net. The 2019 full year guidance does not take into account the benefit of the anticipated $63 million in payments related to a recently resolved litigation matter as written is currently evaluating the accounting treatment of such payments. |
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