0001708055-22-000012 | 10-Q | XBRL Viewer | Ribbon Communications INC

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Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2022	Oct. 21, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-38267
Entity Registrant Name	RIBBON COMMUNICATIONS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-1669692
Entity Address, Address Line One	6500 Chase Oaks Boulevard, Suite 100,
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75023
City Area Code	978
Local Phone Number	614-8100
Title of 12(b) Security	Common Stock, par value $0.0001
Trading Symbol	RBBN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		168,123,073
Entity Central Index Key	0001708055
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 55,670	$ 103,915
Restricted cash	265	2,570
Accounts receivable, net	237,834	282,917
Inventory	70,286	54,043
Other current assets	58,344	37,545
Total current assets	422,399	480,990
Property and equipment, net	46,166	47,685
Intangible assets, net	309,697	350,730
Goodwill	300,892	300,892
Investments	0	43,931
Deferred income taxes	57,273	47,287
Operating lease right-of-use assets	48,079	53,147
Other assets	40,129	23,075
Total assets	1,224,635	1,347,737
Current liabilities:
Current portion of term debt	20,058	20,058
Accounts payable	73,018	97,121
Accrued expenses and other	99,261	100,752
Operating lease liabilities	15,617	17,403
Deferred revenue	90,139	109,119
Total current liabilities	298,093	344,453
Long-term debt, net of current	310,770	350,217
Operating lease liabilities, net of current	49,137	55,196
Deferred revenue, net of current	22,185	20,619
Deferred income taxes	11,679	8,116
Other long-term liabilities	43,602	41,970
Total liabilities	735,466	820,571
Commitments and contingencies (Note 17)
Stockholders' equity:
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.0001 par value per share; 240,000,000 shares authorized; 168,093,446 shares issued and outstanding at September 30, 2022; 148,895,308 shares issued and outstanding at December 31, 2021	17	15
Additional paid-in capital	1,936,457	1,875,234
Accumulated deficit	(1,474,232)	(1,355,661)
Accumulated other comprehensive income	26,927	7,578
Total stockholders' equity	489,169	527,166
Total liabilities and stockholders' equity	$ 1,224,635	$ 1,347,737

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	240,000,000	240,000,000
Common stock, shares issued (in shares)	168,093,446	148,895,308
Common stock, shares outstanding (in shares)	168,093,446	148,895,308

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue:
Total revenue	$ 207,127	$ 210,398	$ 586,121	$ 614,380
Cost of revenue:
Total cost of revenue	102,809	99,744	299,198	284,513
Gross profit	104,318	110,654	286,923	329,867
Operating expenses:
Research and development	49,366	49,132	153,159	143,339
Sales and marketing	36,365	36,113	109,827	108,212
General and administrative	12,118	12,148	37,881	40,435
Amortization of acquired intangible assets	7,508	7,547	22,296	20,790
Acquisition-, disposal- and integration-related	988	1,955	4,372	4,204
Restructuring and related	1,269	1,767	8,977	10,547
Total operating expenses	107,614	108,662	336,512	327,527
(Loss) income from operations	(3,296)	1,992	(49,589)	2,340
Interest expense, net	(5,266)	(2,969)	(13,869)	(11,836)
Other expense, net	(3,732)	(57,702)	(42,760)	(65,970)
Loss before income taxes	(12,294)	(58,679)	(106,218)	(75,466)
Income tax provision	(6,122)	(752)	(12,353)	(5,411)
Net loss	$ (18,416)	$ (59,431)	$ (118,571)	$ (80,877)
Loss per share:
Basic (in dollars per share)	$ (0.12)	$ (0.40)	$ (0.78)	$ (0.55)
Diluted (in dollars per share)	$ (0.12)	$ (0.40)	$ (0.78)	$ (0.55)
Weighted average shares used to compute loss per share:
Basic (in shares)	158,921	148,184	152,795	147,204
Diluted (in shares)	158,921	148,184	152,795	147,204
Product
Revenue:
Total revenue	$ 111,152	$ 111,726	$ 305,809	$ 322,744
Cost of revenue:
Total cost of revenue	59,866	53,494	169,226	144,580
Service
Revenue:
Total revenue	95,975	98,672	280,312	291,636
Cost of revenue:
Total cost of revenue	35,175	36,576	106,049	110,498
Amortization of acquired technology
Cost of revenue:
Total cost of revenue	$ 7,768	$ 9,674	$ 23,923	$ 29,435

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (18,416)	$ (59,431)	$ (118,571)	$ (80,877)
Other comprehensive income (loss), net of tax:
Unrealized gain on interest rate swap	1,726	860	21,248	7,324
Foreign currency translation adjustments	(144)	193	(1,157)	(207)
Employee retirement benefits	142	0	(742)	0
Other comprehensive income, net of tax	1,724	1,053	19,349	7,117
Comprehensive loss, net of tax	$ (16,692)	$ (58,378)	$ (99,222)	$ (73,760)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive (loss) income
Beginning balance (in shares) at Dec. 31, 2020		145,425,248
Beginning balance at Dec. 31, 2020	$ 686,853	$ 15	$ 1,870,256	$ (1,178,476)	$ (4,942)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		13,815
Exercise of stock options	24		24
Vesting of restricted stock units (in shares)		3,320,644
Vesting of performance-based stock units (in shares)		1,525,681
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares)		(1,671,559)
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations	(13,980)		(13,980)
Stock-based compensation expense	14,411		14,411
Other comprehensive income	7,117				7,117
Net loss	(80,877)			(80,877)
Ending balance (in shares) at Sep. 30, 2021		148,613,829
Ending balance at Sep. 30, 2021	613,548	$ 15	1,870,711	(1,259,353)	2,175
Beginning balance (in shares) at Jun. 30, 2021		148,057,301
Beginning balance at Jun. 30, 2021	669,281	$ 15	1,868,066	(1,199,922)	1,122
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		213
Vesting of restricted stock units (in shares)		855,440
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares)		(299,125)
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations	(1,916)		(1,916)
Stock-based compensation expense	4,561		4,561
Other comprehensive income	1,053				1,053
Net loss	(59,431)			(59,431)
Ending balance (in shares) at Sep. 30, 2021		148,613,829
Ending balance at Sep. 30, 2021	$ 613,548	$ 15	1,870,711	(1,259,353)	2,175
Beginning balance (in shares) at Dec. 31, 2021	148,895,308	148,895,308
Beginning balance at Dec. 31, 2021	$ 527,166	$ 15	1,875,234	(1,355,661)	7,578
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)	708	708
Exercise of stock options	$ 1		1
Vesting of restricted stock units (in shares)		2,808,137
Vesting of performance-based stock units (in shares)		179,184
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares)		(861,202)
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations	(2,684)		(2,684)
Common stock issued in equity offering (in shares)		17,071,311
Common stock issued in equity offering	52,067	$ 2	52,065
Issuance costs related to equity offering	(1,654)		(1,654)
Stock-based compensation expense	13,495		13,495
Other comprehensive income	19,349				19,349
Net loss	$ (118,571)			(118,571)
Ending balance (in shares) at Sep. 30, 2022	168,093,446	168,093,446
Ending balance at Sep. 30, 2022	$ 489,169	$ 17	1,936,457	(1,474,232)	26,927
Beginning balance (in shares) at Jun. 30, 2022		150,459,784
Beginning balance at Jun. 30, 2022	451,344	$ 15	1,881,942	(1,455,816)	25,203
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		353
Exercise of stock options	1		1
Vesting of restricted stock units (in shares)		800,999
Vesting of performance-based stock units (in shares)		3,433
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares)		(242,434)
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations	(738)		(738)
Common stock issued in equity offering (in shares)		17,071,311
Common stock issued in equity offering	52,067	$ 2	52,065
Issuance costs related to equity offering	(1,654)		(1,654)
Stock-based compensation expense	4,841		4,841
Other comprehensive income	1,724				1,724
Net loss	$ (18,416)			(18,416)
Ending balance (in shares) at Sep. 30, 2022	168,093,446	168,093,446
Ending balance at Sep. 30, 2022	$ 489,169	$ 17	$ 1,936,457	$ (1,474,232)	$ 26,927

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (118,571)	$ (80,877)
Adjustments to reconcile net loss to cash flows (used in) provided by operating activities:
Depreciation and amortization of property and equipment	11,688	12,684
Amortization of intangible assets	46,219	50,225
Amortization of debt issuance costs	1,697	4,227
Stock-based compensation	13,495	14,411
Deferred income taxes	(19,071)	(3,295)
Gain on sale of business	0	(2,772)
Decrease in fair value of investments	41,291	64,745
Foreign currency exchange losses	830	3,235
Changes in operating assets and liabilities:
Accounts receivable	44,604	1,892
Inventory	(24,002)	253
Other operating assets	6,066	11,303
Accounts payable	(22,311)	2,194
Accrued expenses and other long-term liabilities	(6,983)	(58,661)
Deferred revenue	(17,414)	(11,665)
Net cash (used in) provided by operating activities	(42,462)	7,899
Cash flows from investing activities:
Purchases of property and equipment	(9,744)	(14,279)
Purchases of software licenses	(3,300)	0
Proceeds from sale of business	0	2,944
Net cash used in investing activities	(13,044)	(11,335)
Cash flows from financing activities:
Borrowings under revolving line of credit	58,625	0
Principal payments on revolving line of credit	(58,625)	0
Proceeds from issuance of term debt	0	74,625
Principal payments of term debt	(40,044)	(87,161)
Principal payments of finance leases	(433)	(736)
Payment of debt issuance costs	(1,046)	(789)
Proceeds from equity offering	52,067	0
Payment of equity offering issuance costs	(1,654)	0
Proceeds from the exercise of stock options	1	24
Payment of tax withholding obligations related to net share settlements of restricted stock awards	(2,684)	(13,980)
Net cash provided by (used in) financing activities	6,207	(28,017)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,251)	(489)
Net decrease in cash, cash equivalents and restricted cash	(50,550)	(31,942)
Cash, cash equivalents and restricted cash, beginning of year	106,485	135,697
Cash, cash equivalents and restricted cash, end of period	55,935	103,755
Supplemental disclosure of cash flow information:
Interest paid	13,179	11,410
Income taxes paid	14,653	11,944
Income tax refunds received	643	983
Supplemental disclosure of non-cash investing activities:
Capital expenditures incurred, but not yet paid	989	1,807
Software license acquired through investment disposal	1,886	0
Supplemental disclosure of non-cash financing activities:
Total fair value of restricted stock awards, restricted stock units and performance-based stock units on date vested	$ 9,092	$ 38,879

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

BASIS OF PRESENTATION

Business

Ribbon Communications Inc. ("Ribbon" or the "Company") is a leading global provider of communications technology to service providers and enterprises. The Company provides a broad range of software and high-performance hardware products, network solutions and services that enable the secure delivery of data and voice communications, and high-bandwidth networking and connectivity for residential consumer and for small, medium and large enterprises, and industry verticals such as finance, education, government, utilities and transportation. Ribbon's mission is to create a recognized global technology leader providing cloud-centric solutions that enable the secure exchange of information, with unparalleled scale, performance and elasticity. The Company is headquartered in Plano, Texas, and has a global presence with research and development or sales and support locations in over thirty-five countries around the world.

Basis of Presentation

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring items, necessary for their fair presentation with accounting principles generally accepted in the United States of America ("GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC").

Interim results are not necessarily indicative of results for a full year or any future interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2021 (the "Annual Report"), which was filed with the SEC on March 11, 2022.

Equity Offering

On August 12, 2022, the Company entered into a Securities Purchase Agreement with certain investors for the sale (the "Equity Offering") in a private placement by the Company of 17,071,311 shares (the "Shares") of the Company’s common stock, par value $0.0001 per share, at a price of $3.05 per share. The aggregate gross proceeds from the Equity Offering were approximately $52.1 million, before deducting offering expenses paid by the Company of approximately $1.7 million. The Company intends to use the net proceeds from the Equity Offering to fund general corporate purposes, including capital expenditures, working capital and repayment of debt.

The original issuance of the Shares in the Equity Offering was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Company subsequently filed a registration statement on Form S-3 (the “Registration Statement”) with the SEC registering the Shares, which Registration Statement was declared effective by the SEC on September 23, 2022.

Operating Segments

The Company's chief operating decision maker (the "CODM") is its President and Chief Executive Officer. The CODM assesses the Company's performance based on the performance of two separate organizations within Ribbon: the Cloud and Edge segment ("Cloud and Edge") and the IP Optical Networks segment ("IP Optical Networks").

Reclassifications

In the fourth quarter of 2021, the Company reclassified amounts recorded for amortization of certain acquired intangible assets in prior presentations from Total operating expenses under the caption "Amortization of acquired intangible assets" to Cost of revenue under the caption "Amortization of acquired technology" in the condensed consolidated statements of operations. The Company's management believes this presentation aids in the comparability of its financial statements to industry peers. This reclassification did not impact the condensed consolidated balance sheets or statements of cash flows for any historical periods. The Company reports depreciation of property and equipment related to production activities as components of Cost of revenue. This reclassification for the three and nine months ended September 30, 2021 was as follows

(in thousands):


	Three months ended September 30, 2021						Nine months ended September 30, 2021
	Prior presentation		Amounts reclassified		Revised presentation		Prior presentation		Amounts reclassified		Revised presentation
Product revenue	$	111,726			$	111,726	$	322,744			$	322,744
Service revenue	98,672				98,672		291,636				291,636
Total revenue	210,398		—		210,398		614,380		—		614,380
Cost of revenue - product	53,494				53,494		144,580				144,580
Cost of revenue - service	36,576				36,576		110,498				110,498
Amortization of acquired technology	—		9,674		9,674		—		29,435		29,435
Total cost of revenue	90,070		9,674		99,744		255,078		29,435		284,513
Total gross profit	120,328		(9,674)		110,654		359,302		(29,435)		329,867
Research and development	49,132				49,132		143,339				143,339
Sales and marketing	36,113				36,113		108,212				108,212
General and administrative	12,148				12,148		40,435				40,435
Amortization of acquired intangible assets	17,221		(9,674)		7,547		50,225		(29,435)		20,790

Acquisition-, disposal- and integration-related	1,955				1,955		4,204				4,204
Restructuring and related	1,767				1,767		10,547				10,547
Total operating expenses	118,336		(9,674)		108,662		356,962		(29,435)		327,527
Income from operations	$	1,992	$	—	$	1,992	$	2,340	$	—	$	2,340

Significant Accounting Policies

The Company's significant accounting policies are disclosed in Note 2 to the Consolidated Financial Statements included in the Annual Report. There were no material changes to the significant accounting policies during the three months ended September 30, 2022.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Ribbon and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates and Judgments

The preparation of financial statements in conformity with GAAP requires Ribbon to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon in preparing these condensed consolidated financial statements include accounting for business combinations, revenue recognition for multiple element arrangements, inventory valuations, assumptions used to determine the fair value of stock-based compensation, intangible asset and goodwill valuations, including impairments, legal contingencies and recoverability of Ribbon's net deferred tax assets and the related valuation allowances. Ribbon regularly assesses these estimates and records changes in estimates in the period in which they become known. Ribbon bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Restricted Cash

The Company classifies as restricted cash all cash pledged as collateral to secure long-term obligations and all cash whose use is otherwise limited by contractual provisions.

The Company had $0.3 million and $2.6 million of restricted cash as of September 30, 2022 and December 31, 2021, respectively, representing restricted short-term bank deposits pledged to secure certain performance and financial bonds as security for the Company's obligations under tenders, contracts and to one of its main subcontractors.

Transfers of Financial Assets

The Company maintains customer receivables factoring agreements with a number of financial institutions, primarily for IP Optical Networks sales outside of the United States. Under the terms of these agreements, the Company may transfer receivables to the financial institutions, on a non-recourse basis, provided that the financial institutions approve the receivables in advance. The Company maintains credit insurance policies from major insurance providers or obtains letters of credit from the customers for a majority of its factored trade receivables. The Company accounts for the factoring of its financial assets as a sale of the assets and records the factoring fees, when incurred, as a component of interest expense in the condensed consolidated statements of operations, and the proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows.

Information regarding the Company's factoring of its financial assets for the three and nine months ended September 30, 2022 and 2021 is as follows (in thousands):



	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Accounts receivable sold	$	16,926	$	24,961	$	57,640	$	88,608
Less factoring fees	(281)		$	(169)	(757)		(570)
Net cash proceeds	$	16,645	$	24,792	$	56,883	$	88,038

Going Concern

The accompanying condensed consolidated financial statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

In the second quarter of 2022, although the Company was in compliance with its financial covenants, it projected that it may not maintain compliance with its financial covenants under the 2020 Credit Facility, as amended (as defined in Note 9), for the quarter ended September 30, 2022 due to the impact of market conditions, including supply chain disruptions, higher costs, and other geopolitical instabilities and disputes. Failure to remain in compliance would be an event of default that would permit the Lenders (as defined in Note 9) to accelerate the maturity of the 2020 Credit Facility.

Under the terms of the existing credit agreement (see Note 9), the Company is allowed, subject to certain limitations, to use a portion of the capital raised in the Equity Offering in the calculation of the covenant ratios for the quarter in which the Equity Offering was completed (quarter ended September 30, 2022) and for future calculation of the covenant ratios for which the third quarter of 2022 is included in the trailing twelve month period. As a result, the Company currently projects that it will remain in compliance with its financial covenants for at least one year from the date the condensed consolidated financial statements are issued.

Recent Accounting Pronouncements

In March 2022, the Financial Accounting Standards Board (the "FASB") issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which eliminates the accounting guidance on troubled debt restructurings ("TDRs") for creditors in ASC 310, Receivables (Topic 310), and requires entities to provide disclosures about current period gross write-offs by year of origination. Also, ASU 2022-02 updates the

requirements related to accounting for credit losses under ASC 326, Financial Instruments – Credit Losses (Topic 326), and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. ASU 2022-02 is effective for the Company January 1, 2023, with early adoption permitted. The Company believes that the adoption of ASU 2022-02 will not have a material impact on its consolidated financial statements upon adoption.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"), which amends ASC 805, Business Combinations (Topic 805), to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers (Topic 606) ("ASC 606"). Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. While primarily related to contract assets and contract liabilities that were accounted for by the acquiree in accordance with ASC 606, ASU 2021-08 also applies to contract assets and contract liabilities from other contracts to which the provisions of ASC 606 apply, such as contract liabilities from the sale of nonfinancial assets within the scope of ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). ASU 2021-08 is effective for the Company January 1, 2023, with early adoption permitted. The Company believes that the adoption of ASU 2021-08 could have a material impact on its consolidated financial statements for periods including and subsequent to significant business acquisitions.

In January 2021 the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope ("ASU 2021-01"), which refines the scope of ASC 848, Reference Rate Reform, and clarifies some of its guidance as part of the FASB's monitoring of global reference rate reform activities. ASU 2021-01 permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculating price alignment interest in connection with reference rate reform activities under way in global financial markets (the "discounting transition"). ASU 2021-01 is effective for the Company prospectively in any period through December 31, 2022 that a modification is made to the terms of the derivatives affected by the discounting transition. The adoption of ASU 2021-01 did not have a material impact on the Company's consolidated financial statements.

EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. For periods in which the Company reports net income, diluted net earnings per share is determined by using the weighted average number of common and dilutive common equivalent shares outstanding during the period, unless the effect is antidilutive.

The calculations of shares used to compute diluted earnings (loss) per share were as follows (in thousands):


	Three months ended		Nine months ended
	September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021
Weighted average shares outstanding - basic	158,921	148,184	152,795	147,204
Potential dilutive common shares	—	—	—	—
Weighted average shares outstanding - diluted	158,921	148,184	152,795	147,204

Options to purchase the Company's common stock and unvested restricted and performance-based stock units aggregating 14.4 million shares have not been included in the computation of loss per share for the three and nine months ended September 30, 2022 because their effect would have been antidilutive. Options to purchase the Company's common stock and unvested restricted and performance-based stock awards and stock units aggregating 10.9 million shares have not been included in the computation of diluted loss per share for the three and nine months ended September 30, 2021 because their effect would have been antidilutive.

INVENTORY

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

INVENTORY

Inventory at September 30, 2022 and December 31, 2021 consisted of the following (in thousands):


	September 30, 2022		December 31, 2021

On-hand final assemblies and finished goods inventories	$	77,244	$	57,360
Deferred cost of goods sold	3,887		1,474
	81,131		58,834
Less noncurrent portion (included in other assets)	(10,845)		(4,791)
Current portion	$	70,286	$	54,043

INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

The Company's intangible assets at September 30, 2022 and December 31, 2021 consisted of the following (in thousands):


September 30, 2022	Weighted average amortization period (years)	Cost		Accumulated amortization		Net carrying value
In-process research and development	*	$	34,000	$	—	$	34,000

Developed technology	7.93	306,380		205,194		101,186
Customer relationships	11.86	268,140		99,245		168,895
Trade names	3.88	5,000		4,448		552
Software licenses	3.00	5,186		122		5,064

	9.12	$	618,706	$	309,009	$	309,697


December 31, 2021	Weighted average amortization period (years)	Cost		Accumulated amortization		Net carrying value
In-process research and development	*	$	34,000	$	—	$	34,000

Developed technology	7.93	306,380		181,393		124,987
Customer relationships	11.86	268,140		77,653		190,487
Trade names	3.88	5,000		3,744		1,256

Internal use software	3.00	730		730		—
	9.17	$	614,250	$	263,520	$	350,730

* An in-process research and development intangible asset has an indefinite life until the product is generally available, at which time such asset is typically reclassified to developed technology.

Estimated future amortization expense for the Company's intangible assets at September 30, 2022 was as follows (in

thousands):


Years ending December 31,
Remainder of 2022	$	14,970
2023	56,881
2024	50,717
2025	44,005
2026	38,965
2027	33,936
Thereafter	70,223
	$	309,697

On August 29, 2022, the Company acquired perpetual software licenses from American Virtual Cloud Technologies, Inc. ("AVCT") for $4.4 million (see Note 5).

There were no changes to the carrying value of the Company's goodwill in the nine months ended September 30, 2022 and 2021. The components of goodwill at September 30, 2022 and 2021 were as follows (in thousands):


	Cloud and Edge		IP Optical Networks		Total
Balance at September 30, 2022
Goodwill	$	392,302	$	191,996	$	584,298
Accumulated impairment losses	(167,406)		(116,000)		(283,406)
	$	224,896	$	75,996	$	300,892
Balance at September 30, 2021
Goodwill	$	392,302	$	191,996	$	584,298
Accumulated impairment losses	(167,406)		—		(167,406)
	$	224,896	$	191,996	$	416,892

INVESTMENTS AND FAIR VALUE HIERARCHY	9 Months Ended
INVESTMENTS AND FAIR VALUE HIERARCHY	Sep. 30, 2022
Schedule of Investments [Abstract]
INVESTMENTS AND FAIR VALUE HIERARCHY	INVESTMENTS AND FAIR VALUE HIERARCHY The Company received debentures and warrants as sale consideration in connection with the sale of its Kandy Communications Business on December 1, 2020 to AVCT. The debentures bore interest at a rate of 10% per annum (the "Debentures"), which was added to the principal amount of the Debentures. The Company recorded $0.9 million and $3.6 million of interest income in the three and nine months ended September 30, 2021, which was added to the principal amount of the Debentures, and which is included in Interest expense, net, in the condensed consolidated statement of operations. On September 8, 2021 (the "Debenture Conversion Date"), the debentures were converted into 13,700,421 shares of AVCT common stock (the "Debenture Shares"). The warrants entitled the Company to purchase 4,377,800 shares of AVCT common stock at an exercise price of $0.01 per share, and were to expire on December 1, 2025 (the "Warrants"). The Company's investment in AVCT (the "AVCT Investment") was comprised of the Debentures and Warrants for periods prior to the Debenture Conversion Date and the Debenture Shares and Warrants for periods subsequent to the Debenture Conversion Date. The Company recorded the AVCT Investment at fair value, with changes in fair value recorded as a component of Other (expense) income, net, in the condensed consolidated statements of operations. On August 29, 2022, the Company and AVCT entered into a settlement agreement which provided for, amongst other things, the cancellation of the Company's investment in the Debenture Shares and the Warrants with an aggregate fair value of $2.6 million. Pursuant to the settlement agreements, the Company and AVCT also entered into a Wind Down Agreement, pursuant to which a Reseller Agreement between the parties, as previously amended, was terminated, and the Company was granted a non-exclusive perpetual license to use and modify certain intellectual property owned by AVCT comprising WebRTC gateway technology that is integrated with Ribbon’s SBCs and Application Servers. As consideration, the Company paid AVCT $2.5 million in cash, the Debenture Shares were redeemed and canceled, and the Warrants were terminated and canceled. The perpetual license granted by AVCT is classified as Intangible assets, net in the Company's condensed consolidated balance sheet as of September 30, 2022 in the amount of $4.4 million. The fair value of the AVCT Investment, which was reported as an Investment in the Company's condensed consolidated balance sheet, was $43.9 million December 31, 2021. The Company had no investment in AVCT as of September 30, 2022 due to the settlement agreement entered into on August 29, 2022. The Company recorded losses of $1.9 million and $41.3 million in the three and nine months ended September 30, 2022, respectively, representing the change in the fair value of the AVCT Investment. The Company recorded losses of $56.5 million and $68.3 million in the three and nine months ended September 30, 2021, respectively, representing the change in the fair value of the AVCT Investment, which was partially offset by the paid-in-kind interest income described above. The AVCT Investment is classified as a Level 1 fair value measurement at December 31, 2021. The Company evaluated the nature of the AVCT Investment at December 31, 2021, and determined that it represented an equity interest on a diluted basis of approximately 15%. The Company determined that it was not the primary beneficiary of AVCT as it did not have the power to direct the activities that most significantly impact the AVCT Investment's economic performance, and therefore concluded that the Company had neither significant influence nor a controlling interest arising from the AVCT Investment that would require consolidation as of December 31, 2021. The carrying amounts of the Company's financial instruments approximate their fair values and include cash equivalents, accounts receivable, and accounts payable. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tier fair value hierarchy is based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1. Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2. Level 2 applies to assets or liabilities for which there are inputs that are directly or indirectly observable in the marketplace, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). Level 3. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

ACCRUED EXPENSES AND OTHER

9 Months Ended

Sep. 30, 2022

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER

Accrued expenses at September 30, 2022 and December 31, 2021 consisted of the following (in thousands):


	September 30, 2022		December 31, 2021
Employee compensation and related costs	$	29,460	$	38,040
Professional fees	15,564		14,365


Other	54,237		48,347
	$	99,261	$	100,752

WARRANTY ACCRUALS

9 Months Ended

Sep. 30, 2022

Guarantees and Product Warranties [Abstract]

WARRANTY ACCRUALS

The changes in the Company's accrual balance in the nine months ended September 30, 2022 were as follows (in thousands):






Balance at January 1, 2022	$	13,120

Current period provisions	3,970
Settlements	(4,318)
Balance at September 30, 2022	$	12,772

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES

The Company recorded restructuring and related expense aggregating $1.3 million and $1.8 million in the three months ended September 30, 2022 and 2021, respectively, and $9.0 million and $10.5 million in the nine months ended September 30, 2022 and 2021, respectively. Restructuring and related expense includes restructuring expense (primarily severance and related costs), estimated future variable lease costs for vacated properties with no intent or ability of sublease, and accelerated rent amortization expense.

For restructuring events that involve lease assets and liabilities, the Company applies lease reassessment and modification guidance and evaluates the right-of-use assets for potential impairment. If the Company plans to exit all or distinct portions of a facility and does not have the ability or intent to sublease, the Company will accelerate the amortization of each of those lease components through the vacate date. The accelerated amortization is recorded as a component of Restructuring and related expense in the Company's condensed consolidated statements of operations. Related variable lease expenses will continue to be expensed as incurred through the vacate date, at which time the Company will reassess the liability balance to ensure it appropriately reflects the remaining liability associated with the premises and records a liability for the estimated future variable lease costs.

Restructuring and related expense for the three and nine months ended September 30, 2022 and 2021 was comprised of the following (in thousands):



	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Severance and related costs	$	(358)	$	481	$	4,623	$	3,076
Variable and other facilities-related costs	970		$	1,286	2,734		4,103
Accelerated amortization of lease assets due to cease-use	657		$	—	1,620		3,368
	$	1,269	$	1,767	$	8,977	$	10,547

Accelerated Rent Amortization

Accelerated rent amortization of lease assets is recognized from the date that the Company commences the plan to fully or partially vacate a facility, for which there is no intent or ability to enter into a sublease, through the final vacate date. The liability for the total lease payments for each respective facility is included as a component of Operating lease liabilities in the Company's condensed consolidated balance sheets, both current and noncurrent (see Note 15). The Company may incur additional future expense if it is unable to sublease other locations included in its restructuring initiatives.

2022 Restructuring Plan

On February 14, 2022, the Company's Board of Directors approved a strategic restructuring program (the "2022 Restructuring Plan") to streamline the Company's operations in order to support the Company's investment in critical growth areas. The 2022 Restructuring Plan is expected to include, among other things, charges related to a consolidation of facilities and a workforce reduction. Any positions eliminated in countries outside the United States are subject to local law and

consultation requirements.

The Company recorded restructuring and related expense of $1.3 million and $8.3 million in the three and nine months ended September 30, 2022, respectively, in connection with the 2022 Restructuring Plan. The amount for the three months ended September 30, 2022 was comprised of $1.0 million for variable and other facilities-related costs, $0.6 million for accelerated amortization of lease assets no longer being used with no ability or intent to sublease, and $(0.3) million for adjustments to severance and related costs. The amount for the nine months ended September 30, 2022 was comprised of $4.7 million for severance and related costs for approximately 60 employees, $2.0 million for variable and other facilities-related costs and $1.6 million for accelerated amortization of lease assets no longer being used with no ability or intent to sublease. A summary of the 2022 Restructuring Plan accrual activity for the nine months ended September 30, 2022 is as follows (in thousands):


	Balance at January 1, 2022		Initiatives charged to expense		Cash payments		Net transfer to operating lease accounts		Balance at September 30, 2022
Severance	$	—	$	4,679	$	(3,324)	$	—	$	1,355
Variable and other facilities-related costs	—		2,042		(1,087)		—		955
Accelerated amortization of lease assets due to cease-use	—		1,620		—		(1,620)		—

	$	—	$	8,341	$	(4,411)	$	(1,620)	$	2,310

Balance Sheet Classification

The current portions of accrued restructuring are included as a component of Accrued expenses and the long-term portions of accrued restructuring are included as a component of Other long-term liabilities in the condensed consolidated balance sheets. The long-term portions of accrued restructuring relate to facilities totaled $2.2 million at September 30, 2022 and $1.6 million at December 31, 2021.

DEBT	9 Months Ended
DEBT	Sep. 30, 2022
Debt Disclosure [Abstract]
DEBT	DEBT 2020 Credit Facility On March 3, 2020, the Company entered into a Senior Secured Credit Facilities Credit Agreement (as amended, the "2020 Credit Facility"), by and among the Company, as a guarantor, Ribbon Communications Operating Company, Inc., as the borrower ("Borrower"), Citizens Bank, N.A. ("Citizens"), as administrative agent, a lender, issuing lender, swingline lender, joint lead arranger and bookrunner, Santander Bank, N.A., as a lender, joint lead arranger and bookrunner, and the other lenders party thereto (each, together with Citizens Bank, N.A. and Santander Bank, N.A., referred to individually as a "Lender", and collectively, the "Lenders"). The proceeds of the 2020 Credit Facility were used, in part, to pay off in full all obligations of the Company under its prior credit facility. The 2020 Credit Facility provides for $500 million of commitments from the Lenders to the Borrower, comprised of $400 million in term loans (the "2020 Term Loan Facility") and a $100 million facility available for revolving loans (the "2020 Revolving Credit Facility"). Under the 2020 Revolving Credit Facility, a $30 million sublimit is available for letters of credit and a $20 million sublimit is available for swingline loans. Under the 2020 Credit Facility, the Company was originally required to make quarterly principal payments aggregating approximately $10 million in the first year, $20 million per year for the following three years, and $30 million in the last year, with the remaining balance due on the maturity date. The 2020 Credit Facility also requires periodic interest payments until maturity. The indebtedness and other obligations under the 2020 Credit Facility are unconditionally guaranteed on a senior secured basis by the Company, Edgewater Networks, Inc., a wholly-owned subsidiary of the Company, and GENBAND Inc., a wholly- owned subsidiary of the Company (together, the "Guarantors"). The facilities under the 2020 Credit Facility are secured by first-priority liens on substantially all of the assets of the Borrower and the Guarantors, including substantially all of the assets of the Company. The 2020 Credit Facility requires compliance with certain financial covenants, including a minimum Consolidated Fixed Charge Coverage Ratio and a maximum Consolidated Net Leverage Ratio (each as defined in the 2020 Credit Facility, and each tested on a quarterly basis). The 2020 Credit Facility permits the Company to use proceeds from the sale of equity securities, subject to certain limitations, in the calculation of the minimum Consolidated Fixed Charge Coverage Ratio and maximum Consolidated Net Leverage Ratio for the quarter in which such equity sale occurs, and for future calculations of the covenant ratios where such quarter is included. In addition, the 2020 Credit Facility contains various covenants that, among other restrictions, limit the Company’s and its subsidiaries’ ability to incur or assume indebtedness; grant or assume liens; make acquisitions or engage in mergers; sell, transfer, assign or convey assets; repurchase equity and make dividend and certain other restricted payments; make investments; engage in transactions with affiliates; enter into sale and leaseback transactions; enter into burdensome agreements; change the nature of its business; modify their organizational documents; and amend or make prepayments on certain junior debt. The 2020 Credit Facility contains events of default that are customary for a secured credit facility. If an event of default relating to bankruptcy or other insolvency events with respect to the Company or any of its subsidiaries occurs, all obligations under the 2020 Credit Facility will immediately become due and payable. If any other event of default occurs under the 2020 Credit Facility, the lenders may accelerate the maturity of the obligations outstanding under the Credit Facility and exercise other rights and remedies, including charging a default rate of interest equal to 2.00% per year above the rate that would otherwise be applicable. In addition, if any event of default exists under the 2020 Credit Facility, the lenders can commence foreclosure or other actions against the collateral. On August 18, 2020 (the "First Amendment Date"), the Borrower entered into a First Amendment to the 2020 Credit Facility (the "First Amendment"). Pursuant to an assignment and assumption agreement entered into by Citizens and certain affiliates of Whitehorse Capital on the First Amendment Date (collectively, "HIG Whitehorse"), and consented to by Citizens and the Borrower, $75 million of the 2020 Term Loan Facility, designated as the Term B Loan (the "Term B Loan"), was assigned from Citizens to HIG Whitehorse as of August 18, 2020. The remaining $325 million of the 2020 Term Loan Facility that was not assigned to HIG Whitehorse was deemed the Term A Loan (the "Term A Loan" and, together with the Term B Loan, the "Amended 2020 Term Loan Facility"). The Term A Loan and the 2020 Revolving Credit Facility mature in March 2025. The Term A Loan and 2020 Revolving Credit Facility bear interest at the Borrower's option at either the LIBOR rate plus a margin ranging from 1.50% to 3.50% per year, or the base rate (the highest of the Federal Funds Effective Rate (as defined in the 2020 Credit Facility) plus 0.50%, or the prime rate announced from time to time in The Wall Street Journal) plus a margin ranging from 0.50% to 2.50% per year (the "Applicable Margin"). The Applicable Margin varies depending on the Company's Consolidated Net Leverage Ratio (as defined in the 2020 Credit Facility). The base rate and the LIBOR rate are each subject to a zero percent floor. The Company was required to make quarterly principal payments on the Term A Loan aggregating approximately $10 million in the first year, $16 million per year in each of the next two years, $20 million in the fourth year and $16 million in the last year, with the final payment approximating $244 million due on the maturity date. The Borrower could prepay all amounts under the Term A Loan and the 2020 Revolving Credit Facility at any time without premium or penalty (other than customary LIBOR breakage costs), subject to certain notice requirements. The Term B Loan was scheduled to mature in March 2026 and bore interest, at the Borrower's option, at either the LIBOR rate plus a margin of 7.50% per year, or the base rate (the highest of the Federal Funds Effective Rate (as defined in the First Amendment) plus 0.50%, or the prime rate announced from time to time in The Wall Street Journal, plus a margin of 6.50% per year. The Term B Loan had a lower rate of amortization than the Term A Loan and was subject to a 1.0% premium if voluntarily repaid in connection with a repricing transaction (as defined in the 2020 Credit Facility) occurring prior to the six-month anniversary of the First Amendment Effective Date. The Company was required to make quarterly principal payments totaling approximately $1 million in the first year and $8 million in the aggregate over the next four and a half years, with the final payment approximating $66 million. The First Amendment reduced the Borrower's ability to incur new tranches of term loans, or increases in commitments under the Amended 2020 Term Loan Facility or the 2020 Revolving Credit Facility. Specifically, such indebtedness could be incurred up to an aggregate dollar amount equal to 75% of the Company's Consolidated Adjusted EBITDA (as defined in the 2020 Credit Facility), reduced from 100% prior to the First Amendment, as of the most recently ended fiscal quarter for which financial statements had been delivered to the lenders, plus additional amounts, so long as the Borrower's Consolidated Net Leverage Ratio (as defined in the 2020 Credit Agreement) did not exceed 2.25:1.00, reduced from 2.75:1.00 under the 2020 Credit Facility. The First Amendment also reduced the amount of Unrestricted Cash (as defined in the 2020 Credit Facility) used in calculating the Borrower's Consolidated Net Leverage Ratio from $25 million to $10 million. On December 1, 2020, the Borrower entered into a Second Amendment to the 2020 Credit Facility to obtain consent for an equity exchange with AVCT in connection with the Kandy Sale, as well as to amend certain other provisions of the 2020 Credit Facility. On March 3, 2021 (the "Third Amendment Date"), the Company, the Borrower and certain of its subsidiaries entered into a Third Amendment to Credit Agreement (the "Third Amendment"), which further amended the 2020 Credit Facility. The Third Amendment provided for an incremental term loan facility to the Borrower in the original principal amount of $74.6 million, the proceeds of which were used on the Third Amendment Date to consummate an open market purchase of all outstanding amounts under the Term B Loan. Upon the consummation of the open market purchase, the Term B Loans were assigned to the Borrower and immediately cancelled, such that the outstanding amount under the Term A Loan and incremental term loan facility were combined and held by the Lenders (the "2020 Term Loan") with the same terms as the Term A Loan. The Company wrote off $2.5 million of capitalized debt issuance costs in connection with the Third Amendment, which is included in Interest expense, net, in the Company's condensed consolidated statement of operations for the nine months ended September 30, 2021. The Company was required to make quarterly principal payments on the 2020 Term Loan aggregating approximately $20 million per year in the first three years and $30 million in the fourth year, with the final payment approximating $300 million due on the maturity date. The Third Amendment increased the Borrower's ability to incur new incremental revolving commitments or term loans. Such indebtedness can be incurred up to an aggregate dollar limit equal to 100% of the Company's Consolidated Adjusted EBITDA (as defined in the 2020 Credit Facility) as of the most recently ended fiscal quarter for which financial statements have been delivered to the Lenders, plus additional amounts, so long as the Borrower's Consolidated Net Leverage Ratio (as defined in the Credit Agreement) does not exceed 2.75:1.00, increased from 2.25:1.00 under the First Amendment. The Third Amendment also increased the amount of Unrestricted Cash (as defined in the 2020 Credit Facility) used in calculating the Borrower's Consolidated Net Leverage Ratio from $10.0 million to $25.0 million. On March 10, 2022, the Borrower entered into a Fourth Amendment to the 2020 Credit Facility (the "Fourth Amendment") to increase the Maximum Consolidated Net Leverage Ratio (as defined in the 2020 Credit Facility) to 4.25:1.00 for the first quarter of 2022 and 4.50:1.00 for the second quarter of 2022, with reductions in subsequent quarters through the third quarter of 2023, when the ratio will be fixed at 3.00:1.00. In connection with the Fourth Amendment, the Company made a $15.0 million prepayment that was applied to the final payment due on the maturity date. Subsequent to the Fourth Amendment, the Company was required to make quarterly principal payments on the 2020 Term Loan aggregating approximately $20 million per year for the next two years and $30 million in the following year, with the final payment approximating $285 million due on the maturity date. On June 30, 2022, the Borrower entered into a Fifth Amendment to the 2020 Credit Facility (the "Fifth Amendment") to increase the Maximum Consolidated Net Leverage Ratio (as defined in the 2020 Credit Facility) to 5.25:1.00 for the second quarter of 2022, 5.00:1.00 for the third quarter of 2022, and 4.75:1.00 for the fourth quarter of 2022. Also, the Fifth Amendment reduced the minimum Consolidated Fixed Charge Coverage Ratio (as defined in the 2020 Credit Facility) to 1.10:1.00 for the second, third and fourth quarters of 2022 and increased the maximum rate at which loans bear interest if the Company's Consolidated Net Leverage Ratio for any quarter is greater than 4.50:1.00. Specifically, pursuant to the Fifth Amendment, loans incurred under the Senior Secured Credit Facilities bear interest, at the Borrower’s option, at either LIBOR plus a margin ranging from 1.50% to 4.50% per year, or the base rate (the highest of the Federal Funds Effective Rate (as defined in the Credit Agreement) plus 0.50%, or the prime rate announced from time to time in The Wall Street Journal) plus a margin ranging from 0.50% to 3.50% per year (such margins being referred to as the “Applicable Margin”). In addition, the Fifth Amendment allows the Company to incur junior secured or unsecured debt in an amount no less than $50 million, subject to certain conditions, including the requirement that 50% of the aggregate amount of such incurred debt (net of certain costs, fees and other amounts) must be applied to prepay the Senior Secured Credit Facilities, and compliance with certain leverage ratio-based covenant exceptions. In connection with the Fifth Amendment, the Company made a $10.0 million voluntary prepayment that was applied to the final payment due on the maturity date. Subsequent to the Fifth Amendment, the Company is required to make quarterly principal payments on the 2020 Term Loan aggregating approximately $5.0 million per quarter through March 31, 2024 and $10.0 million in each of the three quarters thereafter, with the final payment approximating $275 million due on the maturity date in March 2025. At September 30, 2022, the Company had an outstanding balance under the 2020 Term Loan of $335.5 million at an average interest rate of 5.4% and $3.3 million of letters of credit outstanding with an interest rate of 4.5%. At December 31, 2021, the Company had an outstanding 2020 Term Loan balance of $375.5 million at an average interest rate of 3.4% and $4.3 million of letters of credit outstanding with an interest rate of 2.5%. The Company was in compliance with all covenants of the 2020 Credit Facility at both September 30, 2022 and December 31, 2021. Letters of Credit and Performance and Bid Bonds The Company uses letters of credit and performance and bid bonds in the course of its business. At September 30, 2022, the Company had letters of credit, bank guarantees, and performance and bid bonds outstanding (collectively, "Guarantees") aggregating $9.5 million, comprised of the $3.3 million of letters of credit under the 2020 Credit Facility described above (the "Letters of Credit") and $6.3 million of bank guarantees and performance and bid bonds (collectively, the "Other Guarantees") under various uncommitted facilities. At December 31, 2021, the Company had Guarantees aggregating $30.1 million, comprised of the $4.3 million of Letters of Credit noted above and $25.8 million of Other Guarantees. At September 30, 2022 and December 31, 2021, the Company had cash collateral of $0.3 million and $2.6 million, respectively, supporting the Guarantees, which is reported as Restricted cash in the condensed consolidated balance sheets.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1I
-Subparagraph (a)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Section 50
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-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to financial market risk related to foreign currency fluctuations and changes in interest rates. These exposures are actively monitored by management. To manage the volatility related to the exposure to changes in interest rates, the Company has entered into a derivative financial instrument. Management's objective is to reduce, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in interest rates. Ribbon's policies and practices are to use derivative financial instruments only to the extent necessary to manage exposures. Ribbon does not hold or issue derivative financial instruments for trading or speculative purposes.

The Company records derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a specific risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge, or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

Cash Flow Hedge of Interest Rate Risk

The 2020 Term Loan Facility had outstanding balances of $335.5 million and $375.5 million at September 30, 2022 and December 31, 2021, respectively. The 2020 Revolving Credit Facility was undrawn at both September 30, 2022 and December 31, 2021. Borrowings under the 2020 Credit Facility have variable interest rates based on LIBOR (see Note 9). As a result of exposure to interest rate movements, during March 2020, the Company entered into an interest rate swap arrangement, which

effectively converted its $400 million term loan with its variable interest rate based upon one-month LIBOR to an aggregate fixed rate of 0.904%, plus a leverage-based margin as defined in the 2020 Credit Facility.

On July 22, 2022, the Company sold $30 million of the notional amount of its interest rate swap back to its counterparty for $1.5 million, reducing the notional amount of this swap to $370 million. On August 16, 2022 the Company sold another $30 million of the notional amount of its interest rate swap back to its counterparty for $1.6 million, reducing the notional amount to $340 million, which approximates the current level of our term loan debt outstanding. The gain in accumulated other comprehensive (loss) income related to the $60 million notional amount sold of $3.1 million is being released into earnings on a straight line basis over the remaining term of the 2020 Credit Facility as a decrease to interest expense, the amortization of which totaled $0.2 million for the three and nine months ended September 30, 2022. The notional amount of this swap at September 30, 2022 was $340 million, and the swap matures on March 3, 2025, the same date the 2020 Credit Facility matures.

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company is using an interest rate swap as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of designated derivatives that qualify as cash flow hedges is recorded in accumulated other comprehensive income in the condensed consolidated balance sheet and is subsequently reclassified into earnings in the period that the hedged forecasted transactions affect earnings. During the three and nine months ended September 30, 2022 and 2021, such a derivative was used to hedge the variable cash flows associated with the outstanding borrowings under the 2020 Credit Facility and the Company has accounted for this derivative as an effective hedge. Any ineffective portion of the change in the fair value of the derivative would be recognized directly in earnings.

Amounts reported in accumulated other comprehensive income related to the Company's derivative are reclassified to interest expense as interest is accrued on the Company’s variable-rate debt. Based upon projected forward rates, the Company estimates as of September 30, 2022 that $11 million may be reclassified as a decrease to interest expense over the next twelve months.

The impact of the Company’s derivative financial instrument on its condensed consolidated statements of comprehensive (loss) income for the three and nine months ended September 30, 2022 and 2021 was as follows, net of tax (in thousands):



	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Gain recognized in other comprehensive income (loss) on derivative, net of tax	$	3,056	$	30	$	21,685	$	4,905
Amount reclassified from accumulated other comprehensive income (loss) to interest expense	(1,330)		830		(437)		2,419
	$	1,726	$	860	$	21,248	$	7,324

The fair values and locations in the condensed consolidated balance sheets at September 30, 2022 and December 31, 2021 of the Company's derivative assets (liabilities) designated as a hedging instrument were as follows (in thousands):


	Balance sheet location	September 30, 2022		December 31, 2021
Interest rate derivative - asset derivative	Other current assets	$	11,033	$	—
Interest rate derivative - asset derivative	Other assets	15,250		3,865
Interest rate derivative - liability derivative	Accrued expenses and other	—		(2,054)

		$	26,283	$	1,811

The Company has classified the interest rate derivative aggregating $26.3 million and $1.8 million at September 30, 2022 and December 31, 2021, respectively, as Level 2 fair value measurements within the fair value hierarchy (see Note 5).

REVENUE RECOGNITION

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

The Company derives revenue from two primary sources: products and services. Product revenue includes the Company's hardware and software that function together to deliver the products' essential functionality. Software and hardware are also sold on a standalone basis. Services include customer support (software updates, upgrades and technical support), consulting, design services, installation services and training. Generally, contracts with customers contain multiple performance obligations, consisting of products and services. For these contracts, the Company accounts for individual performance obligations separately if they are considered distinct.

When an arrangement contains more than one performance obligation, the Company will allocate the transaction price to each performance obligation on a relative standalone selling price basis. The Company utilizes the observable price of goods and services when they are sold separately to similar customers in order to estimate standalone selling price.

The Company's software licenses typically provide a perpetual right to use the Company's software. The Company also sells term-based software licenses that expire and Software-as-a-Service ("SaaS")-based software which are referred to as subscription arrangements. The Company does not customize its software nor are installation services required, as the customer has a right to utilize internal resources or a third-party service company. The software and hardware are delivered before related services are provided and are functional without professional services or customer support. The Company has concluded that its software licenses are functional intellectual property that are distinct, as the user can benefit from the software on its own. Product revenue is typically recognized upon transfer of control or when the software is made available for download, as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from, the functional intellectual property. The Company begins to recognize software revenue related to the renewal of subscription software licenses at the start of the subscription period.

The Company offers warranties on its products. Certain of the Company's warranties are considered to be assurance-type in nature, ensuring the product is functioning as intended. Assurance-type warranties do not represent separate performance obligations. The Company also sells separately-priced maintenance service contracts which qualify as service-type warranties and represent separate performance obligations. The Company does not allow and has no history of accepting product returns.

Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts at a percentage of list or net product price. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year.

The Company's professional services include consulting, technical support, resident engineer services, design services and installation services. Because control transfers over time, revenue is recognized based on progress toward completion of the performance obligation. The method to measure progress toward completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the input method to measure progress for its contracts because it believes such method best depicts the transfer of assets to the customer, which occurs as the Company incurs costs for the contracts. However, in some instances, the Company uses the output method because it best depicts the transfer of asset to the customer. Under the cost-to-cost measure of progress, the progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. When the measure of progress is based upon expended labor, progress toward completion is measured as the ratio of labor time expended to date versus the total estimated labor time required to complete the performance obligation. Revenue is recorded proportionally as costs are incurred or as labor is expended. Costs to fulfill these obligations include internal labor as well as subcontractor costs.

Customer training includes courses offered by the Company. The related revenue is typically recognized as the training services are performed.

The Company's typical performance obligations include the following:

Performance Obligation

When Performance Obligation is Typically Satisfied

When Payment is Typically Due

Software and Product Revenue

Software licenses (perpetual or term)

Upon transfer of control; typically, when made available for download (point in time)

Generally, within 30 days of invoicing except for term licenses, which may be paid for over time

Software licenses (subscription)

Upon activation of hosted site (over time)

Generally, within 30 days of invoicing

Hardware

When control of the hardware passes to the customer; typically, upon delivery (point in time)

Generally, within 30 days of invoicing

Software upgrades

Upon transfer of control; typically, when made available for download (point in time)

Generally, within 30 days of invoicing

Customer Support Revenue

Customer support

Ratably over the course of the support contract (over time)

Generally, within 30 days of invoicing

Professional Services

Other professional services (excluding training services)

As work is performed (over time)

Generally, within 30 days of invoicing (upon completion of services)

Training

When the class is taught (point in time)

Generally, within 30 days of services being performed

Significant Judgments

The Company's contracts with customers often include promises to transfer multiple products and services to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.

Judgment is required to determine the standalone selling price ("SSP") for each distinct performance obligation. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, the Company may use information such as the size of the customer and geographic region in determining the SSP.

Deferred Revenue

Deferred revenue is a contract liability representing amounts collected from or invoiced to customers in excess of revenue recognized. This results primarily from the billing of annual customer support agreements where the revenue is recognized over the term of the agreement. The value of deferred revenue will increase or decrease based on the timing of recognition of revenue.

Disaggregation of Revenue

The Company disaggregates its revenue from contracts with customers based on the nature of the products and services and the geographic regions in which each customer is domiciled. The Company's revenue for the three and nine months ended September 30, 2022 and 2021 was disaggregated as follows:



Three months ended September 30, 2022	Product revenue		Service revenue (maintenance)		Service revenue (professional services)		Total revenue
United States	$	42,373	$	32,980	$	11,684	$	87,037


Europe, Middle East and Africa	42,454		20,022		7,147		69,623

Asia Pacific	19,077		11,382		3,186		33,645
Other	7,248		7,605		1,969		16,822
	$	111,152	$	71,989	$	23,986	$	207,127



Three months ended September 30, 2021	Product revenue		Service revenue (maintenance)		Service revenue (professional services)		Total revenue
United States	$	47,134	$	33,391	$	12,764	$	93,289


Europe, Middle East and Africa	32,234		19,290		7,971		59,495

Asia Pacific	26,087		10,618		4,215		40,920
Other	6,271		8,371		2,052		16,694
	$	111,726	$	71,670	$	27,002	$	210,398


Nine months ended September 30, 2022	Product revenue		Service revenue (maintenance)		Service revenue (professional services)		Total revenue
United States	$	128,056	$	99,090	$	33,689	$	260,835


Europe, Middle East and Africa	95,392		56,464		20,503		172,359

Asia Pacific	64,471		31,178		10,791		106,440
Other	17,890		23,320		5,277		46,487
	$	305,809	$	210,052	$	70,260	$	586,121


Nine months ended September 30, 2021	Product revenue		Service revenue (maintenance)		Service revenue (professional services)		Total revenue
United States	$	140,074	$	97,813	$	35,516	$	273,403


Europe, Middle East and Africa	91,751		59,684		22,622		174,057

Asia Pacific	70,714		31,203		13,886		115,803
Other	20,205		24,112		6,800		51,117
	$	322,744	$	212,812	$	78,824	$	614,380

The Company's product revenue from indirect sales through its channel partner program and from its direct sales program for the three and nine months ended September 30, 2022 and 2021 was as follows (in thousands):


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Indirect sales through channel partner program	$	34,382	$	25,214	$	86,335	$	72,491
Direct sales	76,770		86,512		219,474		250,253
	$	111,152	$	111,726	$	305,809	$	322,744

The Company's product revenue from sales to enterprise customers and from sales to service provider customers for the three and nine months ended September 30, 2022 and 2021 was as follows (in thousands):


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Sales to enterprise customers	$	33,136	$	20,034	$	78,056	$	67,225
Sales to service provider customers	78,016		91,692		227,753		255,519
	$	111,152	$	111,726	$	305,809	$	322,744

The Company's product revenue and service revenue components by segment for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Product revenue:
Cloud and Edge	$	51,321	$	65,587	$	153,081	$	180,100
IP Optical Networks	59,831		46,139		152,728		142,644
Total product revenue	$	111,152	$	111,726	$	305,809	$	322,744

Service revenue:
Maintenance:
Cloud and Edge	$	55,686	$	56,786	$	165,895	$	169,445
IP Optical Networks	16,303		14,884		44,157		43,367
Total maintenance revenue	71,989		71,670		210,052		212,812
Professional services:
Cloud and Edge	17,678		20,064		52,595		59,735
IP Optical Networks	6,308		6,938		17,665		19,089
Total professional services revenue	23,986		27,002		70,260		78,824
Total service revenue	$	95,975	$	98,672	$	280,312	$	291,636

Revenue Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable; unbilled receivables, which are contract assets; and customer advances and deposits, which are contract liabilities, in the Company's condensed consolidated balance sheets. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Completion of services and billing may occur subsequent to revenue recognition, resulting in contract assets. The Company may receive advances or deposits from its customers before revenue is recognized, resulting in contract liabilities that are classified as deferred revenue. These assets and liabilities are reported in the Company's condensed consolidated balance sheets on a contract-by-contract basis as of the end of each reporting period. Changes in the contract asset and liability balances during the three months ended September 30, 2022 were not materially impacted by any factors other than billing and revenue recognition. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts. Unbilled receivables stem primarily from engagements where services have been performed; however, billing cannot occur until services are completed.

In some arrangements, the Company allows customers to pay for term-based software licenses and products over the term of the software license. The Company also sells SaaS-based software under subscription arrangements, with payment terms over the term of the SaaS agreement. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables that are anticipated to be invoiced in the next twelve months are included in Accounts receivable on the Company's condensed consolidated balance sheets. The changes in the Company's accounts receivable, unbilled receivables and deferred revenue balances for the nine months ended September 30, 2022 were as follows (in thousands):


	Accounts receivable		Unbilled accounts receivable		Deferred revenue (current)		Deferred revenue (long-term)
Balance at January 1, 2022	$	208,972	$	73,945	$	109,119	$	20,619
Increase (decrease), net	(63,441)		18,358		(18,980)		1,566
Balance at September 30, 2022	$	145,531	$	92,303	$	90,139	$	22,185

The Company recognized approximately $85 million of revenue in the nine months ended September 30, 2022 that was recorded as deferred revenue at December 31, 2021 and approximately $81 million of revenue in the nine months ended September 30, 2021 that was recorded as deferred revenue at December 31, 2020. Of the Company's deferred revenue reported as long-term in its condensed consolidated balance sheet at September 30, 2022, the Company expects that approximately $4 million will be recognized as revenue in 2023, approximately $10 million will be recognized as revenue in 2024 and approximately $8 million will be recognized as revenue in 2025 and beyond.

All freight-related customer invoicing is recorded as revenue, while the shipping and handling costs that occur after control of the promised goods or services transfer to the customer are reported as fulfillment costs, a component of Cost of revenue - product in the Company's condensed consolidated statements of operations.

Deferred Commissions Cost

Sales commissions earned by the Company's employees are considered incremental and recoverable costs of obtaining a contract with a customer. Expense related to commission payments has been deferred on our condensed consolidated balance sheet and is being amortized over the expected life of the customer contract, which averages five years. The current and long-term portions of deferred commission expense are included as components of Other current assets and Other assets, respectively. At both September 30, 2022 and December 31, 2021, the Company had $3.8 million of deferred sales commissions capitalized.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

OPERATING SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

OPERATING SEGMENT INFORMATION

The Company has two reportable segments, which are intended to align with the manner in which the business is managed: Cloud and Edge, and IP Optical Networks.

The Cloud and Edge segment provides secure and reliable software and hardware products, solutions and services for enabling Voice over Internet Protocol ("VoIP") communications, Voice over Long-Term Evolution ("VoLTE") and Voice Over 5G ("VoNR") communications, and Unified Communications and Collaboration ("UC&C") within service provider and enterprise networks and from the cloud. The Cloud and Edge products are increasingly software-centric and cloud-native for deployment on private, public or hybrid cloud infrastructures, in data centers, on enterprise premises and within service provider networks. Ribbon's Cloud and Edge product portfolio consists of its Session Border Controller ("SBC") products and its Network Transformation ("NTR") products.

The IP Optical Networks segment provides high-performance, secure solutions for IP networking and optical transport, supporting wireless networks including 5G, metro and edge aggregation, core networking, data center interconnect, legacy transformation and transport solutions for wholesale carriers. This portfolio is offered to service provider, enterprise and industry verticals with critical transport network infrastructures including utilities, government, defense, transportation, and education and research.

The Company has not provided segment asset information as such information is not provided to the CODM and accordingly, asset information is not used in assessing segment performance. Segment revenue and expenses included in the tables below represent direct revenue and expense attributable to each segment. Please see Note 4 for information regarding the allocation of goodwill between segments.

The CODM utilizes revenue and adjusted gross profit to measure and assess each segment's performance. The Company calculates adjusted gross profit by excluding from cost of revenue: amortization of acquired technology and stock-based

compensation, and may also exclude other items in future periods that the Company believes are not part of the Company's core business. Adjusted gross profit is not a financial measure determined in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies, and should not be considered a substitute for gross profit or other results reported in accordance with U.S. GAAP. See below for a reconciliation of adjusted gross profit to gross profit, which is the most directly comparable U.S. GAAP measure.

The tables below provide information regarding revenue, adjusted gross profit, and depreciation expense by reportable segment for the three and nine months ended September 30, 2022 and 2021 (in thousands):


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Segment revenue:
Cloud and Edge	$	124,685	$	142,437	$	371,571	$	409,280
IP Optical Networks	82,442		67,961		214,550		205,100
Revenue	$	207,127	$	210,398	$	586,121	$	614,380



	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Segment adjusted gross profit:
Cloud and Edge	$	81,524	$	95,998	$	243,196	$	276,170
IP Optical Networks	31,287		24,918		69,556		84,544
Total segment adjusted gross profit	112,811		120,916		312,752		360,714
Stock-based compensation expense	(725)		(588)		(1,906)		(1,412)
Amortization of acquired technology	(7,768)		(9,674)		(23,923)		(29,435)

Gross profit	$	104,318	$	110,654	$	286,923	$	329,867


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
















Segment depreciation expense:
Cloud and Edge	$	2,753	$	3,018	$	8,153	$	9,297
IP Optical Networks	1,162		1,191		3,535		3,387
Depreciation expense	$	3,915	$	4,209	$	11,688	$	12,684

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

MAJOR CUSTOMERS

9 Months Ended

Sep. 30, 2022

Risks and Uncertainties [Abstract]

MAJOR CUSTOMERS

The following customers contributed 10% or more of the Company's revenue in the three and nine months ended September 30, 2022 and 2021:

Three months ended

Nine months ended

September 30,
2022

September 30,
2021

September 30,
2022

September 30,
2021

Verizon Communications Inc.

13%

18%

16%

17%

AT&T

10%

* Less than 10% of total revenue.

At September 30, 2022, no customer accounted for 10% or more of the Company's accounts receivable balance. At December 31, 2021, one customer accounted for 10% or more of the Company's accounts receivable balance, representing approximately 15% of total accounts receivable. The Company performs ongoing credit evaluations of its customers and

generally does not require collateral on accounts receivable, although in some instances the Company may require letters of credit to support customer outstanding accounts receivable balances. The Company maintains an allowance for doubtful accounts and such losses have been within management's expectations.

STOCK-BASED COMPENSATION PLANS

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION PLANS

2019 Stock Incentive Plan

The Company's Amended and Restated 2019 Incentive Award Plan (the "2019 Plan") provides for the award of options to purchase the Company's common stock ("stock options"), stock appreciation rights ("SARs"), restricted stock awards ("RSAs"), performance-based stock awards ("PSAs"), restricted stock units ("RSUs"), performance-based stock units ("PSUs") and other stock- or cash-based awards. Awards can be granted under the 2019 Plan to the Company's employees, officers and non-employee directors, as well as consultants and advisors of the Company and its subsidiaries.

At the Company's annual meeting of stockholders held on May 25, 2022, the Company's stockholders approved an amendment to the 2019 Plan to increase the number of shares of the Company's common stock authorized for issuance under the 2019 Plan by 10.0 million shares.

Assumed Stock Plans

In connection with the acquisition of Edgewater Networks, Inc. in August 2018, the Company assumed Edgewater's Amended and Restated 2002 Stock Option Plan (the "Edgewater Plan") to the extent of the shares underlying the options outstanding under the Edgewater Plan as of the Edgewater Acquisition Date (the "Edgewater Options"). The Edgewater Options were converted to Ribbon stock options (the "Ribbon Replacement Options") which are vesting under the same schedules as the respective Edgewater Options.

In connection with the Company's acquisitions of Performance Technologies Inc. ("PT") in 2014, and Network Equipment Technologies, Inc. ("NET") in 2012, the Company assumed their stock plans (collectively, the "Assumed Plans"). Any outstanding awards under the Assumed Plans that in the future expire, terminate, are cancelled or surrendered, or are repurchased by the Company will be returned to the 2019 Plan. Accordingly, no additional shares may be granted under the Assumed Plans.

Executive Equity Arrangements

Inducement Awards

In connection with his appointment as President and Chief Executive Office of Ribbon, and as an inducement for Bruce McClelland's ("Mr. McClelland") commencement of employment, the Company awarded Mr. McClelland sign-on equity grants, comprised of 462,963 RSUs and a PSU grant with both market and service conditions (the "Inducement PSUs") on March 16, 2020. The RSUs vested and were released to Mr. McClelland on March 16, 2021. Subject to Mr. McClelland's continued employment, the Inducement PSUs are eligible to vest and be settled in up to 4,750,000 shares of Ribbon common stock upon the achievement of specified share price thresholds on or prior to September 1, 2024. The first share price threshold for Mr. McClelland’s Inducement PSUs was achieved on February 26, 2021, and accordingly 1,333,333 shares were released to him.

Performance-Based Stock Grants

In addition to granting RSUs to its executives and certain of its employees, the Company also grants PSUs to certain of its executives, including the Inducement PSUs granted to Mr. McClelland as described above.

Each year, beginning in 2019 and continuing through 2022, the Company has granted certain of its executives (the "2022 PSUs", "2021 PSUs", "2020 PSUs" and "2019 PSUs", respectively), of which 60% of each executive's PSU grant had both performance and service conditions (the "Performance PSUs") and 40% had both market and service conditions (the "Market

PSUs"). The 2019 PSUs earned were released on March 15, 2022; these releases are included in the table below.

Each executive's Performance PSU grant is comprised of three consecutive fiscal year performance periods beginning in the year of grant (each, a "Fiscal Year Performance Period"), with one-third of the Performance PSUs attributable to each Fiscal Year Performance Period. The number of shares that will vest for each Fiscal Year Performance Period, if any, will be based on the achievement of certain metrics related to the Company's financial performance for the applicable year on a standalone basis (each, a "Fiscal Year Performance Condition"). The Company's achievement of the goals for each Fiscal Year Performance Condition (and the number of shares of Company common stock to vest as a result thereof) are being measured on a linear sliding scale in relation to specific threshold, target and stretch performance conditions, with any shares earned vesting in the first quarter of the fiscal year following the third Performance Period of the grant, pending each executive's continued employment with the Company through that date. The number of shares of common stock underlying the Performance PSUs that can be earned will in no event exceed 200% of the Performance PSUs. Shares subject to the Performance PSUs that fail to be earned will be forfeited.

The Market PSUs have one three-year performance period, beginning January 1 in the year of grant and ending on December 31, three years thereafter (the "Market Performance Period"). The number of shares subject to the Market PSUs that will vest, if any, will be dependent upon the Company's total shareholder return ("TSR") compared with the TSR of the companies included in a custom index for the applicable Market Performance Period, measured by the Compensation Committee after the Market Performance Period ends, with any shares earned vesting in the first quarter of the fiscal year following the respective Market Performance Period, pending each executive's continued employment with the Company through that date. The number of shares of common stock underlying the Market PSUs that can be earned will in no event exceed 200% of the Market PSUs. Shares subject to the Market PSUs that fail to be earned will be forfeited.

Accounting for Performance PSUs. Once the grant date criteria have been met for a Fiscal Year Performance Period, the Company records stock-based compensation expense for the respective underlying Performance PSUs based on its assessment of the probability that each performance condition will be achieved and the level, if any, of such achievement. The Compensation Committee determines the number of shares earned, if any, after the Company's financial results for each Fiscal Year Performance Period are finalized. Upon the determination by the Compensation Committee of the number of shares that will be received upon vesting of the Performance PSUs, such number of shares becomes fixed and the unamortized expense is recorded through the remainder of the service period, generally three years from the date of grant, at which time the total Performance PSUs earned, if any, will vest, pending each executive's continued employment with the Company through that date.

Accounting for Market PSUs. PSUs that include a market condition require the use of a Monte Carlo simulation approach to model future stock price movements based upon the risk-free rate of return, the date of return, the volatility of each entity and the pair-wise covariance between each entity. These results are then used to calculate the grant date fair values of the respective PSUs. The Company is required to record expense for the PSUs with market conditions through their respective final vesting dates, regardless of the number of shares that are ultimately earned.

Stock Options

The activity related to the Company's outstanding stock options for the nine months ended September 30, 2022 was as follows:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2022	184,169	$	13.25



Exercised	(708)	$	1.77

Expired	(11,609)	$	16.39
Outstanding at September 30, 2022	171,852	$	13.09	1.90	$	15
Vested or expected to vest at September 30, 2022	171,852	$	13.09	1.90	$	15
Exercisable at September 30, 2022	171,852	$	13.09	1.90	$	15

Both the total intrinsic value of options exercised and cash received in connection with those exercises was nominal in the three and nine months ended September 30, 2022.

Restricted Stock Units

The activity related to the Company's RSUs for the nine months ended September 30, 2022 was as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested balance at January 1, 2022	5,389,611	$	6.19
Granted	5,665,068	$	3.12

Vested	(2,808,137)	$	6.00
Forfeited	(685,571)	$	5.13
Unvested balance at September 30, 2022	7,560,971	$	4.06

The total grant date fair value of shares of restricted stock underlying RSUs that vested during the nine months ended September 30, 2022 was $16.8 million.

Performance-Based Stock Units

The activity related to the Company's PSUs for the nine months ended September 30, 2022 was as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested balance at January 1, 2022	4,987,876	$	2.87
Granted	2,228,073	$	3.27
Vested	(179,184)	$	5.02
Forfeited	(383,262)	$	7.82
Unvested balance at September 30, 2022	6,653,503	$	2.52

The total grant date fair value of shares of restricted stock underlying PSUs that vested during the nine months ended September 30, 2022 was $0.9 million.

Stock-Based Compensation

The condensed consolidated statements of operations include stock-based compensation for the three and nine months ended September 30, 2022 and 2021 as follows (in thousands):


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Product cost of revenue	$	133	$	96	$	339	$	216
Service cost of revenue	592		492		1,567		1,196
Research and development	1,289		1,223		3,735		3,010
Sales and marketing	1,567		1,581		4,418		5,207
General and administrative	1,260		1,169		3,436		4,782
	$	4,841	$	4,561	$	13,495	$	14,411

At September 30, 2022, there was $26.7 million, net of expected forfeitures, of unrecognized stock-based compensation expense related to unvested stock options and stock units. This expense is expected to be recognized over a weighted average period of approximately two years.

LEASES

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

LEASES

The Company has operating and finance leases for corporate offices, research and development facilities, and certain equipment. Operating leases are reported separately in the Company's condensed consolidated balance sheets. Assets acquired under finance leases are included in Property and equipment, net, in the condensed consolidated balance sheets.

The Company determines if an arrangement is a lease at inception. A contract is determined to contain a lease component if the arrangement provides the Company with a right to control the use of an identified asset. Lease agreements may include lease and non-lease components. In such instances for all classes of underlying assets, the Company does not separate lease and non-lease components but rather, accounts for the entire arrangement under leasing guidance. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized on a straight-line basis over the lease term.

Right-of-use assets and lease liabilities are initially measured based on the present value of the future minimum fixed lease payments (i.e., fixed payments in the lease contract) over the lease term at the commencement date. As the Company's existing leases do not have a readily determinable implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future minimum fixed lease payments. The Company calculates its incremental borrowing rate to reflect the interest rate that it would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term and considers its historical borrowing activities and market data from entities with comparable credit ratings in this determination. The measurement of the right-of-use asset also includes any lease payments made prior to the commencement date (excluding any lease incentives) and initial direct costs incurred. The Company assessed its right-of-use assets for impairment as of September 30, 2022 and December 31, 2021 and determined no impairment has occurred.

Lease terms may include options to extend or terminate the lease and the Company incorporates such options in the lease term when it has the unilateral right to make such an election and it is reasonably certain that the Company will exercise that option. In making this determination, the Company considers its prior renewal and termination history and planned usage of the assets under lease, incorporating expected market conditions.

For operating leases, lease expense for minimum fixed lease payments is recognized on a straight-line basis over the lease term. The expense for finance leases includes both interest and amortization expense components, with the interest component calculated based on the effective interest method and the amortization component calculated based on straight-line amortization of the right-of-use asset over the lease term. Lease contracts may contain variable lease costs, such as common area maintenance, utilities and tax reimbursements that vary over the term of the contract. Variable lease costs are not included in

minimum fixed lease payments and as a result, are excluded from the measurement of the right-of-use assets and lease liabilities. The Company expenses all variable lease costs as incurred.

Certain leased facilities are being partially or fully vacated as part of the 2022 Restructuring Plan and for some of those facilities, the Company has no plans to enter into sublease agreements. Accordingly, the Company accelerated the amortization of those lease assets through the planned cease-use date of each facility, resulting in additional amortization expense of $0.6 million and $1.6 million in the three and nine months ended September 30, 2022, respectively. The Company also recorded expense of $0.7 million and $1.0 million in the three and nine months ended September 30, 2022, respectively, for all estimated future variable lease costs related to those facilities.

In connection with the 2020 Restructuring Plan, the Company accelerated amortization totaling $0.2 million and $0.6 million in the three and nine months ended September 30, 2021, respectively for leased facilities that were vacated in 2021 as part of the consolidation of certain sites following the ECI Acquisition. The Company did not record estimated future variable lease costs in the three or nine months ended September 30, 2022 related to the 2020 Restructuring Plan.

In connection with the 2019 Restructuring Plan, certain lease assets related to facilities were partially or fully vacated as the Company consolidated its facilities. The Company had no plans to enter into sublease agreements for some of those facilities. The Company ceased use of those facilities in the first quarter of 2021, the first and fourth quarters of 2020, and the third quarter of 2019. Accordingly, the Company accelerated the amortization of the associated lease assets through the planned cease-use date of each facility, resulting in additional amortization expense of $3.4 million in the nine months ended September 30, 2021. The Company also recorded expense of $1.4 million in the nine months ended September 30, 2021 for all estimated future variable lease costs related to those facilities. The Company did not record expense for accelerated amortization or estimated future variable lease costs in connection with the 2019 Restructuring Plan in the three months ended September 30, 2021. The Company did not record expense for accelerated amortization or estimated future variable lease costs in connection with the 2019 Restructuring Plan in the three or nine months ended September 30, 2022.

All accelerated amortization and accrual of future variable costs are recorded as Restructuring and related expense in the Company's condensed consolidated statements of operations. At September 30, 2022 and December 31, 2021, the Company had accruals of $2.2 million and $1.6 million, respectively, for all future anticipated variable lease costs related to these facilities. The Company may incur additional future expense if it is unable to sublease other locations included in the Facilities Initiative.

The Company leases its corporate offices and other facilities under operating leases, which expire at various times through 2032. The Company's right-of-use lease assets and lease liabilities at September 30, 2022 and December 31, 2021 were as follows (in thousands):


	Classification	September 30, 2022		December 31, 2021
Assets:
Operating lease assets	Operating lease right-of-use assets	$	48,079	$	53,147
Finance lease assets*	Property and equipment, net	43		287
Total leased assets		$	48,122	$	53,434

Liabilities:
Current:
Operating	Operating lease liabilities	$	15,617	$	17,403
Finance	Accrued expenses and other	159		503
Noncurrent:
Operating	Operating lease liabilities, net of current	49,137		55,196
Finance	Other long-term liabilities	4		64
Total lease liabilities		$	64,917	$	73,166

* Finance lease assets were recorded net of accumulated depreciation of $1.2 million and $1.8 million at September 30, 2022 and December 31, 2021, respectively.

The components of lease expense for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021

Operating lease cost*	$	5,233	$	4,996	$	15,401	$	19,027
Finance lease cost:
Amortization of leased assets	64		158		244		567
Interest on lease liabilities	2		12		12		58
Short-term lease cost	3,610		3,327		10,451		9,889
Variable lease costs (costs excluded from minimum fixed lease payments)**	1,424		589		3,283		3,247
Sublease income	(502)		(510)		(1,439)		(985)
Net lease cost	$	9,831	$	8,572	$	27,952	$	31,803

* Operating lease costs for the three and nine months ended September 30, 2022 included $0.6 million and $1.6 million, respectively, of accelerated amortization for certain assets partially or fully vacated with no intent or ability to sublease. Operating lease costs for the nine months ended September 30, 2021 included $3.4 million of accelerated amortization for certain assets partially or fully vacated with no intent or ability to sublease. No such accelerated amortization was recorded in the three months ended September 30, 2021.

** Variable lease costs for the three and nine months ended September 30, 2022 included accruals of $0.7 million and $1.0 million, respectively, for future estimated variable expenses related to certain assets partially or fully vacated with no intent or ability to sublease. Variable lease costs for the nine months ended September 30, 2021 included accruals of $1.4 million for all future estimated variable expenses related to certain assets partially or fully vacated with no intent or ability to sublease. No such variable costs were accrued in the three months ended September 30, 2021.

Cash flow information related to the Company's leases for the nine months ended September 30, 2022 and 2021 was as follows (in thousands):


	Nine months ended
		September 30, 2022		September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	15,662	$	16,509
Operating cash flows for finance leases		$	12	$	58
Financing cash flows for finance leases		$	433	$	736

Other information related to the Company's leases as of September 30, 2022 and December 31, 2021 was as follows:


	September 30, 2022		December 31, 2021
Weighted average remaining lease term (years):
Operating leases	5.97		6.25
Finance leases	0.42		1.00
Weighted average discount rate:
Operating leases	5.70	%	5.61	%
Finance leases	3.20	%	4.15	%

Future minimum fixed lease payments under noncancelable leases at September 30, 2022 were as follows (in thousands):



	Operating		Finance
	leases		leases
Remainder of 2022	$	4,758	$	98
2023	18,301		66
2024	15,375		—
2025	8,158		—
2026	6,720		—
2027 and beyond	24,165		—
Total lease payments	77,477		164
Less: interest	(12,723)		(1)
Present value of lease liabilities	$	64,754	$	163

LEASES

minimum fixed lease payments and as a result, are excluded from the measurement of the right-of-use assets and lease liabilities. The Company expenses all variable lease costs as incurred.


	Classification	September 30, 2022		December 31, 2021
Assets:
Operating lease assets	Operating lease right-of-use assets	$	48,079	$	53,147
Finance lease assets*	Property and equipment, net	43		287
Total leased assets		$	48,122	$	53,434

Liabilities:
Current:
Operating	Operating lease liabilities	$	15,617	$	17,403
Finance	Accrued expenses and other	159		503
Noncurrent:
Operating	Operating lease liabilities, net of current	49,137		55,196
Finance	Other long-term liabilities	4		64
Total lease liabilities		$	64,917	$	73,166

* Finance lease assets were recorded net of accumulated depreciation of $1.2 million and $1.8 million at September 30, 2022 and December 31, 2021, respectively.

The components of lease expense for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021

Operating lease cost*	$	5,233	$	4,996	$	15,401	$	19,027
Finance lease cost:
Amortization of leased assets	64		158		244		567
Interest on lease liabilities	2		12		12		58
Short-term lease cost	3,610		3,327		10,451		9,889
Variable lease costs (costs excluded from minimum fixed lease payments)**	1,424		589		3,283		3,247
Sublease income	(502)		(510)		(1,439)		(985)
Net lease cost	$	9,831	$	8,572	$	27,952	$	31,803

Cash flow information related to the Company's leases for the nine months ended September 30, 2022 and 2021 was as follows (in thousands):


	Nine months ended
		September 30, 2022		September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	15,662	$	16,509
Operating cash flows for finance leases		$	12	$	58
Financing cash flows for finance leases		$	433	$	736

Other information related to the Company's leases as of September 30, 2022 and December 31, 2021 was as follows:


	September 30, 2022		December 31, 2021
Weighted average remaining lease term (years):
Operating leases	5.97		6.25
Finance leases	0.42		1.00
Weighted average discount rate:
Operating leases	5.70	%	5.61	%
Finance leases	3.20	%	4.15	%

Future minimum fixed lease payments under noncancelable leases at September 30, 2022 were as follows (in thousands):



	Operating		Finance
	leases		leases
Remainder of 2022	$	4,758	$	98
2023	18,301		66
2024	15,375		—
2025	8,158		—
2026	6,720		—
2027 and beyond	24,165		—
Total lease payments	77,477		164
Less: interest	(12,723)		(1)
Present value of lease liabilities	$	64,754	$	163

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company's income tax provisions for the nine months ended September 30, 2022 and 2021 reflect the Company's estimates of the effective rates expected to be applicable for the respective full years, adjusted for any discrete events, which are recorded in the period that they occur. These estimates are reevaluated each quarter based on the Company's estimated tax expense for the full year. The estimated effective tax rate includes the impact of valuation allowances in various jurisdictions. The Company intends to continue to maintain a valuation allowance on its deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of the respective allowances. During the three months ended September 30, 2022, the Company recognized a tax benefit of $6.8M related to the release of a valuation allowance on the capital loss deferred tax asset related to its investment in AVCT. The Company generated a capital loss from the cancellation of the AVCT Debenture Shares and Warrants, which it concluded will be carried back to offset capital gains recognized in a prior tax year. Beginning in 2022, the Tax Cuts and Jobs Act of 2017 (the "TCJA") eliminates the option to deduct research and development expenditures currently and requires taxpayers to amortize them over a minimum of five years pursuant to IRC Section 174. Although Congress is considering legislation that would defer the amortization requirement to later years, the Company has no assurance that the provision will be repealed or otherwise modified. If this provision of the TCJA is not repealed or otherwise modified, it will materially reduce the Company's operating cash flows in 2022.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Liabilities for Royalty Payments to the IIA Prior to the ECI Acquisition, ECI had received research and development grants from the Office of the Innovation Authority of the Israeli Ministry of Economics (the "IIA"). The Company assumed ECI's contract with the IIA, which requires the Company to pay royalties to the IIA on proceeds from the sale of products which the Israeli government has supported by way of research and development grants. The royalties for grants prior to 2017 were calculated at the rates of 1.3% to 5.0% of the aggregated proceeds from the sale of such products developed at certain of the Company's R&D centers, up to an amount not exceeding 100% of such grants plus interest at LIBOR. Effective for grants approved in 2017 and subsequently, interest was calculated at the higher of LIBOR plus 1.5% to 2.75%. At September 30, 2022, the Company's maximum possible future royalties commitment, including $4.6 million of unpaid royalties accrued, was $31.0 million, including interest of $1.5 million, based on estimates of future product sales, grants received from the IIA not yet repaid, and management's estimation of products still to be sold. Research and Development Grants The Company records grants received from the IIA as a reduction to research and development expense. Royalties payable to the IIA are recognized pursuant to sales of related products and are classified as Cost of revenue. The Company does not anticipate receiving material grants from the IIA in the foreseeable future. Litigation The Company is often a party to disputes and legal proceedings that it considers routine and incidental to its business, including those described below. The Company believes that it has meritorious defenses to the allegations made in the pending cases and intends to vigorously defend these lawsuits; however, the Company is unable currently to forecast the ultimate outcome of these or similar matters. Since it is difficult to predict the outcome of legal proceedings, it is possible that the ultimate outcomes could materially and adversely affect the Company’s business, financial position, results of operations or cash flows. Accordingly, with respect to these proceedings, the Company is currently unable to reasonably estimate the possible loss or range of possible loss. Miller Complaint. On November 8, 2018, Ron Miller, a purported stockholder of the Company, filed a Class Action Complaint (the "Miller Complaint") in the United States District Court for the District of Massachusetts (the "Massachusetts District Court") against the Company and three of its former officers (collectively, the "Defendants"), claiming to represent a class of purchasers of Sonus common stock during the period from January 8, 2015 through March 24, 2015 and alleging violations of the federal securities laws. Similar to a previous complaint entitled Sousa et al. vs. Sonus Networks, Inc. et al., which was dismissed with prejudice by an order dated June 6, 2017, the Miller Complaint claims that the Defendants made misleading forward-looking statements concerning Sonus' expected fiscal first quarter of 2015 financial performance, which statements were also the subject of an August 7, 2018 Securities and Exchange Commission Cease and Desist Order, whose findings the Company neither admitted nor denied. The Miller plaintiffs are seeking monetary damages. After the Miller Complaint was filed, several parties filed and briefed motions seeking to be selected by the Massachusetts District Court to serve as a Lead Plaintiff in the action. On June 21, 2019, the Massachusetts District Court appointed a group as Lead Plaintiffs and the Lead Plaintiffs filed an amended complaint on July 19, 2019. On August 30, 2019, the Defendants filed a motion to dismiss the Miller Complaint and, on October 4, 2019, the Lead Plaintiffs filed an opposition to the motion to dismiss. There was an oral argument on the motion to dismiss on February 12, 2020, and on October 20, 2022 the court denied the motion to dismiss. No schedule has been set by the court for this matter. Charter Complaint. On September 19, 2022, Charter Communications Operating, LLC (“Charter”) filed two complaints against two of our subsidiaries (Sonus Networks, Inc. and Ribbon Communications Operating Company, Inc.) alleging breach of contract with respect to indemnification obligations purportedly owed to Charter in connection with Charter’s legal dispute with Sprint Communications Company L.P., which was settled by Charter in March 2022. One complaint was filed in the Supreme Court of the State of New York, New York County; the other was filed by Charter as well as co-Plaintiffs Charter Communications Holding Company, LLC and Bright House Networks, LLC, in the Superior Court of the State of Delaware in and for New Castle County. In both suits, Charter is seeking monetary damages. We have not yet filed an answer to Charter’s complaints, and no schedule has been set by either court.

BASIS OF PRESENTATION (Policies)	9 Months Ended
BASIS OF PRESENTATION (Policies)	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring items, necessary for their fair presentation with accounting principles generally accepted in the United States of America ("GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Interim results are not necessarily indicative of results for a full year or any future interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2021 (the "Annual Report"), which was filed with the SEC on March 11, 2022.
Operating Segments	Operating Segments The Company's chief operating decision maker (the "CODM") is its President and Chief Executive Officer. The CODM assesses the Company's performance based on the performance of two separate organizations within Ribbon: the Cloud and Edge segment ("Cloud and Edge") and the IP Optical Networks segment ("IP Optical Networks").
Reclassifications	ReclassificationsIn the fourth quarter of 2021, the Company reclassified amounts recorded for amortization of certain acquired intangible assets in prior presentations from Total operating expenses under the caption "Amortization of acquired intangible assets" to Cost of revenue under the caption "Amortization of acquired technology" in the condensed consolidated statements of operations. The Company's management believes this presentation aids in the comparability of its financial statements to industry peers. This reclassification did not impact the condensed consolidated balance sheets or statements of cash flows for any historical periods. The Company reports depreciation of property and equipment related to production activities as components of Cost of revenue.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Ribbon and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates and Judgments	Use of Estimates and Judgments The preparation of financial statements in conformity with GAAP requires Ribbon to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon in preparing these condensed consolidated financial statements include accounting for business combinations, revenue recognition for multiple element arrangements, inventory valuations, assumptions used to determine the fair value of stock-based compensation, intangible asset and goodwill valuations, including impairments, legal contingencies and recoverability of Ribbon's net deferred tax assets and the related valuation allowances. Ribbon regularly assesses these estimates and records changes in estimates in the period in which they become known. Ribbon bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates.
Restricted Cash	Restricted Cash The Company classifies as restricted cash all cash pledged as collateral to secure long-term obligations and all cash whose use is otherwise limited by contractual provisions.
Transfers of Financial Assets	Transfers of Financial Assets The Company maintains customer receivables factoring agreements with a number of financial institutions, primarily for IP Optical Networks sales outside of the United States. Under the terms of these agreements, the Company may transfer receivables to the financial institutions, on a non-recourse basis, provided that the financial institutions approve the receivables in advance. The Company maintains credit insurance policies from major insurance providers or obtains letters of credit from the customers for a majority of its factored trade receivables. The Company accounts for the factoring of its financial assets as a sale of the assets and records the factoring fees, when incurred, as a component of interest expense in the condensed consolidated statements of operations, and the proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2022, the Financial Accounting Standards Board (the "FASB") issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which eliminates the accounting guidance on troubled debt restructurings ("TDRs") for creditors in ASC 310, Receivables (Topic 310), and requires entities to provide disclosures about current period gross write-offs by year of origination. Also, ASU 2022-02 updates the requirements related to accounting for credit losses under ASC 326, Financial Instruments – Credit Losses (Topic 326), and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. ASU 2022-02 is effective for the Company January 1, 2023, with early adoption permitted. The Company believes that the adoption of ASU 2022-02 will not have a material impact on its consolidated financial statements upon adoption. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"), which amends ASC 805, Business Combinations (Topic 805), to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers (Topic 606) ("ASC 606"). Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. While primarily related to contract assets and contract liabilities that were accounted for by the acquiree in accordance with ASC 606, ASU 2021-08 also applies to contract assets and contract liabilities from other contracts to which the provisions of ASC 606 apply, such as contract liabilities from the sale of nonfinancial assets within the scope of ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). ASU 2021-08 is effective for the Company January 1, 2023, with early adoption permitted. The Company believes that the adoption of ASU 2021-08 could have a material impact on its consolidated financial statements for periods including and subsequent to significant business acquisitions. In January 2021 the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope ("ASU 2021-01"), which refines the scope of ASC 848, Reference Rate Reform, and clarifies some of its guidance as part of the FASB's monitoring of global reference rate reform activities. ASU 2021-01 permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculating price alignment interest in connection with reference rate reform activities under way in global financial markets (the "discounting transition"). ASU 2021-01 is effective for the Company prospectively in any period through December 31, 2022 that a modification is made to the terms of the derivatives affected by the discounting transition. The adoption of ASU 2021-01 did not have a material impact on the Company's consolidated financial statements.

- Definition

Disclosure of accounting policy for transfers and servicing financial assets, including securitization transactions as well as repurchase and resale agreements. This disclosure may include how the entity (1) determines whether a transaction is accounted for as a sale; (2) accounts for a sale transaction, including the initial and subsequent accounting for any interests that the entity obtains or continues to hold in the transaction, how such interests are valued, and the significant assumptions used in the valuation; (3) accounts for a transaction that does not qualify for sale treatment (that is, a financing); and (4) accounts for its servicing assets and liabilities ("servicing"), including how such servicing is measured initially and subsequently, and the methodology and significant assumptions used to value such servicing.

+ References + Details

BASIS OF PRESENTATION (Tables)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

This reclassification for the three and nine months ended September 30, 2021 was as follows

(in thousands):


	Three months ended September 30, 2021						Nine months ended September 30, 2021
	Prior presentation		Amounts reclassified		Revised presentation		Prior presentation		Amounts reclassified		Revised presentation
Product revenue	$	111,726			$	111,726	$	322,744			$	322,744
Service revenue	98,672				98,672		291,636				291,636
Total revenue	210,398		—		210,398		614,380		—		614,380
Cost of revenue - product	53,494				53,494		144,580				144,580
Cost of revenue - service	36,576				36,576		110,498				110,498
Amortization of acquired technology	—		9,674		9,674		—		29,435		29,435
Total cost of revenue	90,070		9,674		99,744		255,078		29,435		284,513
Total gross profit	120,328		(9,674)		110,654		359,302		(29,435)		329,867
Research and development	49,132				49,132		143,339				143,339
Sales and marketing	36,113				36,113		108,212				108,212
General and administrative	12,148				12,148		40,435				40,435
Amortization of acquired intangible assets	17,221		(9,674)		7,547		50,225		(29,435)		20,790

Acquisition-, disposal- and integration-related	1,955				1,955		4,204				4,204
Restructuring and related	1,767				1,767		10,547				10,547
Total operating expenses	118,336		(9,674)		108,662		356,962		(29,435)		327,527
Income from operations	$	1,992	$	—	$	1,992	$	2,340	$	—	$	2,340

Schedule of Information Regarding Factoring of its Financial Assets

Information regarding the Company's factoring of its financial assets for the three and nine months ended September 30, 2022 and 2021 is as follows (in thousands):



	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Accounts receivable sold	$	16,926	$	24,961	$	57,640	$	88,608
Less factoring fees	(281)		$	(169)	(757)		(570)
Net cash proceeds	$	16,645	$	24,792	$	56,883	$	88,038

EARNINGS (LOSS) PER SHARE (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Calculations of Shares Used to Compute Basic and Diluted Earnings (Loss) Per Share

The calculations of shares used to compute diluted earnings (loss) per share were as follows (in thousands):


	Three months ended		Nine months ended
	September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021
Weighted average shares outstanding - basic	158,921	148,184	152,795	147,204
Potential dilutive common shares	—	—	—	—
Weighted average shares outstanding - diluted	158,921	148,184	152,795	147,204

INVENTORY (Tables)

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory at September 30, 2022 and December 31, 2021 consisted of the following (in thousands):


	September 30, 2022		December 31, 2021

On-hand final assemblies and finished goods inventories	$	77,244	$	57,360
Deferred cost of goods sold	3,887		1,474
	81,131		58,834
Less noncurrent portion (included in other assets)	(10,845)		(4,791)
Current portion	$	70,286	$	54,043

INTANGIBLE ASSETS AND GOODWILL (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The Company's intangible assets at September 30, 2022 and December 31, 2021 consisted of the following (in thousands):


September 30, 2022	Weighted average amortization period (years)	Cost		Accumulated amortization		Net carrying value
In-process research and development	*	$	34,000	$	—	$	34,000

Developed technology	7.93	306,380		205,194		101,186
Customer relationships	11.86	268,140		99,245		168,895
Trade names	3.88	5,000		4,448		552
Software licenses	3.00	5,186		122		5,064

	9.12	$	618,706	$	309,009	$	309,697


December 31, 2021	Weighted average amortization period (years)	Cost		Accumulated amortization		Net carrying value
In-process research and development	*	$	34,000	$	—	$	34,000

Developed technology	7.93	306,380		181,393		124,987
Customer relationships	11.86	268,140		77,653		190,487
Trade names	3.88	5,000		3,744		1,256

Internal use software	3.00	730		730		—
	9.17	$	614,250	$	263,520	$	350,730

* An in-process research and development intangible asset has an indefinite life until the product is generally available, at which time such asset is typically reclassified to developed technology.

Schedule of Estimated Future Amortization Expense for Intangible Assets

Estimated future amortization expense for the Company's intangible assets at September 30, 2022 was as follows (in

thousands):


Years ending December 31,
Remainder of 2022	$	14,970
2023	56,881
2024	50,717
2025	44,005
2026	38,965
2027	33,936
Thereafter	70,223
	$	309,697

Schedule of Goodwill


	Cloud and Edge		IP Optical Networks		Total
Balance at September 30, 2022
Goodwill	$	392,302	$	191,996	$	584,298
Accumulated impairment losses	(167,406)		(116,000)		(283,406)
	$	224,896	$	75,996	$	300,892
Balance at September 30, 2021
Goodwill	$	392,302	$	191,996	$	584,298
Accumulated impairment losses	(167,406)		—		(167,406)
	$	224,896	$	191,996	$	416,892

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 55
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

ACCRUED EXPENSES AND OTHER (Tables)

9 Months Ended

Sep. 30, 2022

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses at September 30, 2022 and December 31, 2021 consisted of the following (in thousands):


	September 30, 2022		December 31, 2021
Employee compensation and related costs	$	29,460	$	38,040
Professional fees	15,564		14,365


Other	54,237		48,347
	$	99,261	$	100,752

WARRANTY ACCRUALS (Tables)

9 Months Ended

Sep. 30, 2022

Guarantees and Product Warranties [Abstract]

Schedule of Changes in Accrual Balance

The changes in the Company's accrual balance in the nine months ended September 30, 2022 were as follows (in thousands):






Balance at January 1, 2022	$	13,120

Current period provisions	3,970
Settlements	(4,318)
Balance at September 30, 2022	$	12,772

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES (Tables)

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Accrual Activity

Restructuring and related expense for the three and nine months ended September 30, 2022 and 2021 was comprised of the following (in thousands):



	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Severance and related costs	$	(358)	$	481	$	4,623	$	3,076
Variable and other facilities-related costs	970		$	1,286	2,734		4,103
Accelerated amortization of lease assets due to cease-use	657		$	—	1,620		3,368
	$	1,269	$	1,767	$	8,977	$	10,547

A summary of the 2022 Restructuring Plan accrual activity for the nine months ended September 30, 2022 is as follows (in thousands):


	Balance at January 1, 2022		Initiatives charged to expense		Cash payments		Net transfer to operating lease accounts		Balance at September 30, 2022
Severance	$	—	$	4,679	$	(3,324)	$	—	$	1,355
Variable and other facilities-related costs	—		2,042		(1,087)		—		955
Accelerated amortization of lease assets due to cease-use	—		1,620		—		(1,620)		—

	$	—	$	8,341	$	(4,411)	$	(1,620)	$	2,310

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Impact of Derivative Financial Instrument on Condensed Consolidated Statement of Operations



	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Gain recognized in other comprehensive income (loss) on derivative, net of tax	$	3,056	$	30	$	21,685	$	4,905
Amount reclassified from accumulated other comprehensive income (loss) to interest expense	(1,330)		830		(437)		2,419
	$	1,726	$	860	$	21,248	$	7,324

Schedule of Derivative Liability Designed as a Hedging Instrument


	Balance sheet location	September 30, 2022		December 31, 2021
Interest rate derivative - asset derivative	Other current assets	$	11,033	$	—
Interest rate derivative - asset derivative	Other assets	15,250		3,865
Interest rate derivative - liability derivative	Accrued expenses and other	—		(2,054)

		$	26,283	$	1,811

REVENUE RECOGNITION (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Timing of Performance Obligation

The Company's typical performance obligations include the following:

Performance Obligation

When Performance Obligation is Typically Satisfied

When Payment is Typically Due

Software and Product Revenue

Software licenses (perpetual or term)

Upon transfer of control; typically, when made available for download (point in time)

Generally, within 30 days of invoicing except for term licenses, which may be paid for over time

Software licenses (subscription)

Upon activation of hosted site (over time)

Generally, within 30 days of invoicing

Hardware

When control of the hardware passes to the customer; typically, upon delivery (point in time)

Generally, within 30 days of invoicing

Software upgrades

Upon transfer of control; typically, when made available for download (point in time)

Generally, within 30 days of invoicing

Customer Support Revenue

Customer support

Ratably over the course of the support contract (over time)

Generally, within 30 days of invoicing

Professional Services

Other professional services (excluding training services)

As work is performed (over time)

Generally, within 30 days of invoicing (upon completion of services)

Training

When the class is taught (point in time)

Generally, within 30 days of services being performed

Schedule of Disaggregation of Revenue

The Company's revenue for the three and nine months ended September 30, 2022 and 2021 was disaggregated as follows:



Three months ended September 30, 2022	Product revenue		Service revenue (maintenance)		Service revenue (professional services)		Total revenue
United States	$	42,373	$	32,980	$	11,684	$	87,037


Europe, Middle East and Africa	42,454		20,022		7,147		69,623

Asia Pacific	19,077		11,382		3,186		33,645
Other	7,248		7,605		1,969		16,822
	$	111,152	$	71,989	$	23,986	$	207,127



Three months ended September 30, 2021	Product revenue		Service revenue (maintenance)		Service revenue (professional services)		Total revenue
United States	$	47,134	$	33,391	$	12,764	$	93,289


Europe, Middle East and Africa	32,234		19,290		7,971		59,495

Asia Pacific	26,087		10,618		4,215		40,920
Other	6,271		8,371		2,052		16,694
	$	111,726	$	71,670	$	27,002	$	210,398


Nine months ended September 30, 2022	Product revenue		Service revenue (maintenance)		Service revenue (professional services)		Total revenue
United States	$	128,056	$	99,090	$	33,689	$	260,835


Europe, Middle East and Africa	95,392		56,464		20,503		172,359

Asia Pacific	64,471		31,178		10,791		106,440
Other	17,890		23,320		5,277		46,487
	$	305,809	$	210,052	$	70,260	$	586,121


Nine months ended September 30, 2021	Product revenue		Service revenue (maintenance)		Service revenue (professional services)		Total revenue
United States	$	140,074	$	97,813	$	35,516	$	273,403


Europe, Middle East and Africa	91,751		59,684		22,622		174,057

Asia Pacific	70,714		31,203		13,886		115,803
Other	20,205		24,112		6,800		51,117
	$	322,744	$	212,812	$	78,824	$	614,380


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Indirect sales through channel partner program	$	34,382	$	25,214	$	86,335	$	72,491
Direct sales	76,770		86,512		219,474		250,253
	$	111,152	$	111,726	$	305,809	$	322,744


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Sales to enterprise customers	$	33,136	$	20,034	$	78,056	$	67,225
Sales to service provider customers	78,016		91,692		227,753		255,519
	$	111,152	$	111,726	$	305,809	$	322,744

The Company's product revenue and service revenue components by segment for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Product revenue:
Cloud and Edge	$	51,321	$	65,587	$	153,081	$	180,100
IP Optical Networks	59,831		46,139		152,728		142,644
Total product revenue	$	111,152	$	111,726	$	305,809	$	322,744

Service revenue:
Maintenance:
Cloud and Edge	$	55,686	$	56,786	$	165,895	$	169,445
IP Optical Networks	16,303		14,884		44,157		43,367
Total maintenance revenue	71,989		71,670		210,052		212,812
Professional services:
Cloud and Edge	17,678		20,064		52,595		59,735
IP Optical Networks	6,308		6,938		17,665		19,089
Total professional services revenue	23,986		27,002		70,260		78,824
Total service revenue	$	95,975	$	98,672	$	280,312	$	291,636

Schedule of Customer Assets and Liabilities

The changes in the Company's accounts receivable, unbilled receivables and deferred revenue balances for the nine months ended September 30, 2022 were as follows (in thousands):


	Accounts receivable		Unbilled accounts receivable		Deferred revenue (current)		Deferred revenue (long-term)
Balance at January 1, 2022	$	208,972	$	73,945	$	109,119	$	20,619
Increase (decrease), net	(63,441)		18,358		(18,980)		1,566
Balance at September 30, 2022	$	145,531	$	92,303	$	90,139	$	22,185

OPERATING SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Segment revenue:
Cloud and Edge	$	124,685	$	142,437	$	371,571	$	409,280
IP Optical Networks	82,442		67,961		214,550		205,100
Revenue	$	207,127	$	210,398	$	586,121	$	614,380



	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Segment adjusted gross profit:
Cloud and Edge	$	81,524	$	95,998	$	243,196	$	276,170
IP Optical Networks	31,287		24,918		69,556		84,544
Total segment adjusted gross profit	112,811		120,916		312,752		360,714
Stock-based compensation expense	(725)		(588)		(1,906)		(1,412)
Amortization of acquired technology	(7,768)		(9,674)		(23,923)		(29,435)

Gross profit	$	104,318	$	110,654	$	286,923	$	329,867


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
















Segment depreciation expense:
Cloud and Edge	$	2,753	$	3,018	$	8,153	$	9,297
IP Optical Networks	1,162		1,191		3,535		3,387
Depreciation expense	$	3,915	$	4,209	$	11,688	$	12,684

MAJOR CUSTOMERS (Tables)

9 Months Ended

Sep. 30, 2022

Risks and Uncertainties [Abstract]

Schedule of Customer Contributing 10% or More of the Revenue

The following customers contributed 10% or more of the Company's revenue in the three and nine months ended September 30, 2022 and 2021:

Three months ended

Nine months ended

September 30,
2022

September 30,
2021

September 30,
2022

September 30,
2021

Verizon Communications Inc.

13%

18%

16%

17%

AT&T

10%

* Less than 10% of total revenue.

STOCK-BASED COMPENSATION PLANS (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Activity Related to Outstanding Stock Options

The activity related to the Company's outstanding stock options for the nine months ended September 30, 2022 was as follows:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2022	184,169	$	13.25



Exercised	(708)	$	1.77

Expired	(11,609)	$	16.39
Outstanding at September 30, 2022	171,852	$	13.09	1.90	$	15
Vested or expected to vest at September 30, 2022	171,852	$	13.09	1.90	$	15
Exercisable at September 30, 2022	171,852	$	13.09	1.90	$	15

Schedule of Activity Related to Unvested Restricted Stock Grants

The activity related to the Company's RSUs for the nine months ended September 30, 2022 was as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested balance at January 1, 2022	5,389,611	$	6.19
Granted	5,665,068	$	3.12

Vested	(2,808,137)	$	6.00
Forfeited	(685,571)	$	5.13
Unvested balance at September 30, 2022	7,560,971	$	4.06

Schedule of Activity Related to Performance Stock Awards

The activity related to the Company's PSUs for the nine months ended September 30, 2022 was as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested balance at January 1, 2022	4,987,876	$	2.87
Granted	2,228,073	$	3.27
Vested	(179,184)	$	5.02
Forfeited	(383,262)	$	7.82
Unvested balance at September 30, 2022	6,653,503	$	2.52

Schedule of Stock-based Compensation Expenses Which Are Included in Condensed Consolidated Statement of Operations

The condensed consolidated statements of operations include stock-based compensation for the three and nine months ended September 30, 2022 and 2021 as follows (in thousands):


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Product cost of revenue	$	133	$	96	$	339	$	216
Service cost of revenue	592		492		1,567		1,196
Research and development	1,289		1,223		3,735		3,010
Sales and marketing	1,567		1,581		4,418		5,207
General and administrative	1,260		1,169		3,436		4,782
	$	4,841	$	4,561	$	13,495	$	14,411

LEASES (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Schedule of Right-of-use Lease Assets and Lease Liabilities

The Company's right-of-use lease assets and lease liabilities at September 30, 2022 and December 31, 2021 were as follows (in thousands):


	Classification	September 30, 2022		December 31, 2021
Assets:
Operating lease assets	Operating lease right-of-use assets	$	48,079	$	53,147
Finance lease assets*	Property and equipment, net	43		287
Total leased assets		$	48,122	$	53,434

Liabilities:
Current:
Operating	Operating lease liabilities	$	15,617	$	17,403
Finance	Accrued expenses and other	159		503
Noncurrent:
Operating	Operating lease liabilities, net of current	49,137		55,196
Finance	Other long-term liabilities	4		64
Total lease liabilities		$	64,917	$	73,166

* Finance lease assets were recorded net of accumulated depreciation of $1.2 million and $1.8 million at September 30, 2022 and December 31, 2021, respectively.

Schedule of Components of Lease Expense

The components of lease expense for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):


	Three months ended				Nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021

Operating lease cost*	$	5,233	$	4,996	$	15,401	$	19,027
Finance lease cost:
Amortization of leased assets	64		158		244		567
Interest on lease liabilities	2		12		12		58
Short-term lease cost	3,610		3,327		10,451		9,889
Variable lease costs (costs excluded from minimum fixed lease payments)**	1,424		589		3,283		3,247
Sublease income	(502)		(510)		(1,439)		(985)
Net lease cost	$	9,831	$	8,572	$	27,952	$	31,803

Cash flow information related to the Company's leases for the nine months ended September 30, 2022 and 2021 was as follows (in thousands):


	Nine months ended
		September 30, 2022		September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	15,662	$	16,509
Operating cash flows for finance leases		$	12	$	58
Financing cash flows for finance leases		$	433	$	736

Other information related to the Company's leases as of September 30, 2022 and December 31, 2021 was as follows:


	September 30, 2022		December 31, 2021
Weighted average remaining lease term (years):
Operating leases	5.97		6.25
Finance leases	0.42		1.00
Weighted average discount rate:
Operating leases	5.70	%	5.61	%
Finance leases	3.20	%	4.15	%

Schedule of Future Minimum Fixed Lease Payments Under Noncancelable Operating Leases

Future minimum fixed lease payments under noncancelable leases at September 30, 2022 were as follows (in thousands):



	Operating		Finance
	leases		leases
Remainder of 2022	$	4,758	$	98
2023	18,301		66
2024	15,375		—
2025	8,158		—
2026	6,720		—
2027 and beyond	24,165		—
Total lease payments	77,477		164
Less: interest	(12,723)		(1)
Present value of lease liabilities	$	64,754	$	163

Schedule of Future Minimum Fixed Lease Payments Under Noncancelable Finance Leases

Future minimum fixed lease payments under noncancelable leases at September 30, 2022 were as follows (in thousands):



	Operating		Finance
	leases		leases
Remainder of 2022	$	4,758	$	98
2023	18,301		66
2024	15,375		—
2025	8,158		—
2026	6,720		—
2027 and beyond	24,165		—
Total lease payments	77,477		164
Less: interest	(12,723)		(1)
Present value of lease liabilities	$	64,754	$	163

BASIS OF PRESENTATION - Narrative (Details) $ / shares in Units, $ in Thousands		9 Months Ended
	Aug. 12, 2022 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) country segment $ / shares	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) $ / shares
Product Warranty Liability [Line Items]
Number of countries \| country		35
Common stock, par value (in dollars per share) \| $ / shares		$ 0.0001		$ 0.0001
Offering expenses paid		$ 1,654	$ 0
Number of operating segments \| segment		2
Restricted cash		$ 265		$ 2,570
Restricted Short-term Bank Deposits
Product Warranty Liability [Line Items]
Restricted cash		$ 300		$ 2,600
Private Placement
Product Warranty Liability [Line Items]
Sale of stock, number of shares issued in transaction (in shares) \| shares	17,071,311
Common stock, par value (in dollars per share) \| $ / shares	$ 0.0001
Sale of stock, price per share (in dollar per shares) \| $ / shares	$ 3.05
Sale of stock, consideration received on transaction	$ 52,100
Offering expenses paid	$ 1,700

BASIS OF PRESENTATION - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	$ 207,127	$ 210,398	$ 586,121	$ 614,380
Total cost of revenue	102,809	99,744	299,198	284,513
Gross profit	104,318	110,654	286,923	329,867
Research and development	49,366	49,132	153,159	143,339
Sales and marketing	36,365	36,113	109,827	108,212
General and administrative	12,118	12,148	37,881	40,435
Amortization of acquired intangible assets	7,508	7,547	22,296	20,790
Acquisition-, disposal- and integration-related	988	1,955	4,372	4,204
Restructuring and related	1,269	1,767	8,977	10,547
Total operating expenses	107,614	108,662	336,512	327,527
(Loss) income from operations	(3,296)	1,992	(49,589)	2,340
Prior presentation
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue		210,398		614,380
Total cost of revenue		90,070		255,078
Gross profit		120,328		359,302
Research and development		49,132		143,339
Sales and marketing		36,113		108,212
General and administrative		12,148		40,435
Amortization of acquired intangible assets		17,221		50,225
Acquisition-, disposal- and integration-related		1,955		4,204
Restructuring and related		1,767		10,547
Total operating expenses		118,336		356,962
(Loss) income from operations		1,992		2,340
Amounts reclassified
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue		0		0
Total cost of revenue		9,674		29,435
Gross profit		(9,674)		(29,435)
Amortization of acquired intangible assets		(9,674)		(29,435)
Total operating expenses		(9,674)		(29,435)
(Loss) income from operations		0		0
Product
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	111,152	111,726	305,809	322,744
Total cost of revenue	59,866	53,494	169,226	144,580
Product \| Prior presentation
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue		111,726		322,744
Total cost of revenue		53,494		144,580
Service
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	95,975	98,672	280,312	291,636
Total cost of revenue	35,175	36,576	106,049	110,498
Service \| Prior presentation
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue		98,672		291,636
Total cost of revenue		36,576		110,498
Amortization of acquired technology
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total cost of revenue	$ 7,768	9,674	$ 23,923	29,435
Amortization of acquired technology \| Prior presentation
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total cost of revenue		0		0
Amortization of acquired technology \| Amounts reclassified
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total cost of revenue		$ 9,674		$ 29,435

BASIS OF PRESENTATION - Factoring of Financial Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable sold	$ 16,926	$ 24,961	$ 57,640	$ 88,608
Less factoring fees	(281)	(169)	(757)	(570)
Net cash proceeds	$ 16,645	$ 24,792	$ 56,883	$ 88,038

EARNINGS (LOSS) PER SHARE (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reconciliation of weighted average shares outstanding from basic to diluted
Weighted average shares outstanding—basic (in shares)	158,921	148,184	152,795	147,204
Potential dilutive common shares (in shares)	0	0	0	0
Weighted average shares outstanding—diluted (in shares)	158,921	148,184	152,795	147,204
Options, Restricted and Performance-based Stock and Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities not included in computation of diluted loss per share (in shares)	14,400	10,900	14,400	10,900

INVENTORY (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
On-hand final assemblies and finished goods inventories	$ 77,244	$ 57,360
Deferred cost of goods sold	3,887	1,474
Gross inventory	81,131	58,834
Less noncurrent portion (included in other assets)	(10,845)	(4,791)
Current portion	$ 70,286	$ 54,043

INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Assets and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Intangible Assets And Goodwill
Weighted average amortization period (years)	9 years 2 months 1 day	9 years 1 month 13 days
Cost		$ 618,706	$ 614,250
Accumulated amortization		309,009	263,520
Net carrying value		309,697	350,730
Estimated future amortization expense for intangible assets
Remainder of 2022		14,970
2023		56,881
2024		50,717
2025		44,005
2026		38,965
2027		33,936
Thereafter		70,223
Total		309,697
In-process research and development
Intangible Assets And Goodwill
Cost		34,000	34,000
Accumulated amortization		0	0
Net carrying value		$ 34,000	34,000
Developed technology
Intangible Assets And Goodwill
Weighted average amortization period (years)	7 years 11 months 4 days	7 years 11 months 4 days
Cost		$ 306,380	306,380
Accumulated amortization		205,194	181,393
Net carrying value		$ 101,186	124,987
Customer relationships
Intangible Assets And Goodwill
Weighted average amortization period (years)	11 years 10 months 9 days	11 years 10 months 9 days
Cost		$ 268,140	268,140
Accumulated amortization		99,245	77,653
Net carrying value		$ 168,895	190,487
Trade names
Intangible Assets And Goodwill
Weighted average amortization period (years)	3 years 10 months 17 days	3 years 10 months 17 days
Cost		$ 5,000	5,000
Accumulated amortization		4,448	3,744
Net carrying value		$ 552	1,256
Software licenses
Intangible Assets And Goodwill
Weighted average amortization period (years)		3 years
Cost		$ 5,186
Accumulated amortization		122
Net carrying value		$ 5,064
Internal use software
Intangible Assets And Goodwill
Weighted average amortization period (years)	3 years
Cost			730
Accumulated amortization			730
Net carrying value			$ 0

INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Aug. 29, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Intangible assets, net	$ 309,697		$ 350,730
Software licenses
Business Acquisition [Line Items]
Intangible assets, net	5,064
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Software licenses
Business Acquisition [Line Items]
Intangible assets, net	$ 4,400	$ 4,400

INTANGIBLE ASSETS AND GOODWILL - Schedule of Components of Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Goodwill [Line Items]
Goodwill, gross	$ 584,298		$ 584,298
Accumulated impairment losses	(283,406)		(167,406)
Goodwill	300,892	$ 300,892	416,892
Cloud and Edge
Goodwill [Line Items]
Goodwill, gross	392,302		392,302
Accumulated impairment losses	(167,406)		(167,406)
Goodwill	224,896		224,896
IP Optical Networks
Goodwill [Line Items]
Goodwill, gross	191,996		191,996
Accumulated impairment losses	(116,000)		0
Goodwill	$ 75,996		$ 191,996

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

INVESTMENTS AND FAIR VALUE HIERARCHY (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 08, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Aug. 29, 2022	Dec. 01, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Intangible assets, net		$ 309,697		$ 309,697		$ 350,730
Gain (loss) in fair value of investments				(41,291)	$ (64,745)
Variable Interest Entity, Not Primary Beneficiary \| AVCT Investment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Equity interest						15.00%
Software licenses
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Intangible assets, net		5,064		5,064
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest rate								10.00%
Loss partially offset principal of the debentures			$ 900		3,600
Debt conversion, converted instrument, shares issued (in shares)	13,700,421
Number of shares of common stock entitled from warrants (in shares)	4,377,800
Exercise price of warrants (in dollars per share)	$ 0.01
Fair value of AVCT units		0		0		$ 43,900	$ 2,600
Payments for settlement agreement							2,500
Gain (loss) in fair value of investments		(1,900)	$ 56,500	(41,300)	$ (68,300)
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Software licenses
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Intangible assets, net		$ 4,400		$ 4,400			$ 4,400

ACCRUED EXPENSES AND OTHER (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Employee compensation and related costs	$ 29,460	$ 38,040
Professional fees	15,564	14,365
Other	54,237	48,347
Total accrued expenses	$ 99,261	$ 100,752

WARRANTY ACCRUALS - Changes in Accrual Balance (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at January 1, 2022	$ 13,120
Current period provisions	3,970
Settlements	(4,318)
Balance at September 30, 2022	$ 12,772

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) employee	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring and related	$ 1,269	$ 1,767	$ 8,977	$ 10,547
Accelerated amortization of lease assets due to cease-use	657	$ 0	1,620	$ 3,368
Long-term portion of accrued restructuring	2,200		2,200		$ 1,600
2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related			8,341
Restructuring charges, net of adjustments	1,300		8,300
Accelerated amortization of lease assets due to cease-use	600
2022 Restructuring Plan \| Variable and other facilities-related costs
Restructuring Cost and Reserve [Line Items]
Restructuring and related			2,042
Restructuring charges, net of adjustments	1,000		2,000
2022 Restructuring Plan \| Severance
Restructuring Cost and Reserve [Line Items]
Restructuring and related			4,679
Restructuring charges, net of adjustments	$ (300)		$ 4,700
Number of positions eliminated \| employee			60
2022 Restructuring Plan \| Accelerated amortization of lease assets due to cease-use
Restructuring Cost and Reserve [Line Items]
Restructuring and related			$ 1,620
Restructuring charges, net of adjustments			$ 1,600

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES - Components of Restructuring Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring and Related Activities [Abstract]
Severance and related costs	$ (358)	$ 481	$ 4,623	$ 3,076
Variable and other facilities-related costs	970	1,286	2,734	4,103
Accelerated amortization of lease assets due to cease-use	657	0	1,620	3,368
Restructuring and related expense	$ 1,269	$ 1,767	$ 8,977	$ 10,547

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES - Restructuring Accrual Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring Reserve [Roll Forward]
Initiatives charged to expense	$ 1,269	$ 1,767	$ 8,977	$ 10,547
2022 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			0
Initiatives charged to expense			8,341
Cash payments			(4,411)
Net transfer to operating lease accounts			(1,620)
Balance at the end of the period	2,310		2,310
2022 Restructuring Plan \| Severance
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			0
Initiatives charged to expense			4,679
Cash payments			(3,324)
Net transfer to operating lease accounts			0
Balance at the end of the period	1,355		1,355
2022 Restructuring Plan \| Variable and other facilities-related costs
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			0
Initiatives charged to expense			2,042
Cash payments			(1,087)
Net transfer to operating lease accounts			0
Balance at the end of the period	955		955
2022 Restructuring Plan \| Accelerated amortization of lease assets due to cease-use
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			0
Initiatives charged to expense			1,620
Cash payments			0
Net transfer to operating lease accounts			(1,620)
Balance at the end of the period	$ 0		$ 0

DEBT - Credit Facilities (Details)						9 Months Ended
DEBT - Credit Facilities (Details)	Jun. 30, 2022 USD ($)	Mar. 10, 2022 USD ($)	Mar. 03, 2021 USD ($)	Aug. 18, 2020 USD ($)	Mar. 03, 2020 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Principal payments on revolving line of credit						$ 58,625,000	$ 0
Letters of credit outstanding						9,500,000		$ 30,100,000
Term Loan Facility, Term B Loan \| Additional Applicable Margin
Debt Instrument [Line Items]
Basis spread on variable rate				6.50%
Term Loan Facility, Term B Loan \| Additional Applicable Margin \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Term Loan Facility, Term B Loan \| Additional Applicable Margin \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	3.50%
2020 Term Loan
Debt Instrument [Line Items]
Repayments of principal in first year		$ 20,000,000	$ 20,000,000
Repayments of principal in year two		20,000,000	20,000,000
Repayments of principal in year three		30,000,000	20,000,000
Repayments of principal in year four		285,000,000	30,000,000
Repayments of principal in last year			300,000,000
Quarterly principal payment amount			$ 74,600,000
Write off of capitalized debt issuance costs						2,500,000
Repayment of debt per quarter through March 31, 2024	$ 5,000,000
Repayment of debt for three quarters, thereafter	10,000,000
Repayment of debt, final payment	275,000,000
2020 Credit Facility
Debt Instrument [Line Items]
Commitments from lender					$ 500,000,000
Repayments of principal in first year					10,000,000
Repayments of principal in year two					20,000,000
Repayments of principal in year three					20,000,000
Repayments of principal in year four					20,000,000
Repayments of principal in last year					$ 30,000,000
Default rate percentage					2.00%
Percentage of consolidated adjusted EBITDA			100.00%	75.00%	100.00%
Principal payments on revolving line of credit	10,000,000	$ 15,000,000
Accordion feature	$ 50,000,000
Percent of aggregate amount applied for repayment	50.00%
2020 Credit Facility \| Minimum
Debt Instrument [Line Items]
Consolidated net leverage ratio			2.75	2.25
Borrower's consolidated net leverage ratio			$ 10,000,000	$ 25,000,000
2020 Credit Facility \| Maximum
Debt Instrument [Line Items]
Consolidated net leverage ratio			2.25	2.75
Borrower's consolidated net leverage ratio			$ 25,000,000	$ 10,000,000
2020 Credit Facility \| Debt Instrument, Period One
Debt Instrument [Line Items]
Consolidated net leverage ratio		4.25
2020 Credit Facility \| Debt Instrument, Period One \| Maximum
Debt Instrument [Line Items]
Consolidated net leverage ratio	5.25
2020 Credit Facility \| Debt Instrument, Period Two
Debt Instrument [Line Items]
Consolidated net leverage ratio		4.50
2020 Credit Facility \| Debt Instrument, Period Two \| Maximum
Debt Instrument [Line Items]
Consolidated net leverage ratio	5.00
2020 Credit Facility \| Debt Instrument, Period Three
Debt Instrument [Line Items]
Consolidated net leverage ratio		3.00
2020 Credit Facility \| Debt Instrument, Period Three \| Maximum
Debt Instrument [Line Items]
Consolidated net leverage ratio	4.75
2020 Credit Facility \| Debt Instrument, Period Four
Debt Instrument [Line Items]
Consolidated net leverage ratio	1.10
2020 Credit Facility \| Debt Instrument, Period Four \| Minimum
Debt Instrument [Line Items]
Consolidated net leverage ratio	1.10
2020 Credit Facility \| Debt Instrument, Period Five \| Maximum
Debt Instrument [Line Items]
Consolidated net leverage ratio	4.50
2020 Credit Facility \| Term Loan Facility
Debt Instrument [Line Items]
Commitments from lender					$ 400,000,000
Outstanding balance						$ 335,500,000		$ 375,500,000
2020 Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Commitments from lender					100,000,000
2020 Credit Facility \| Revolving Credit Facility \| Line of Credit \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate				0.00%
2020 Credit Facility \| Letter of Credit
Debt Instrument [Line Items]
Commitments from lender					30,000,000
Debt interest rate						4.50%		2.50%
Letters of credit outstanding						$ 3,300,000		$ 4,300,000
2020 Credit Facility \| Swingline Loan
Debt Instrument [Line Items]
Commitments from lender					$ 20,000,000
2020 Credit Facility \| Term Loan Facility, Term B Loan
Debt Instrument [Line Items]
Commitments from lender				$ 75,000,000
Repayments of principal in first year				1,000,000
Repayments of principal in year two				8,000,000
Repayments of principal in year three				8,000,000
Repayments of principal in year four				8,000,000
Repayments of principal in last year				8,000,000
Repayments of principal on the maturity date				$ 66,000,000
Premium percentage from voluntary repayment				1.00%
2020 Credit Facility \| Term Loan Facility, Term B Loan \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate				7.50%
2020 Credit Facility \| Term Loan Facility, Term B Loan \| LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
2020 Credit Facility \| Term Loan Facility, Term B Loan \| LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	4.50%
2020 Credit Facility \| Term Loan Facility, Term B Loan \| Prime Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%			0.50%
2020 Credit Facility \| Term Loan Facility, Term A Loan
Debt Instrument [Line Items]
Commitments from lender				$ 325,000,000
Repayments of principal in first year				10,000,000
Repayments of principal in year two				16,000,000
Repayments of principal in year three				16,000,000
Repayments of principal in year four				20,000,000
Repayments of principal in last year				16,000,000
Repayments of principal on the maturity date				$ 244,000,000
Outstanding balance						$ 335,500,000		$ 375,500,000
Debt interest rate						5.40%		3.40%
2020 Credit Facility \| Term Loan Facility, Term A Loan \| LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate				1.50%
2020 Credit Facility \| Term Loan Facility, Term A Loan \| LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate				3.50%
2020 Credit Facility \| Term Loan Facility, Term A Loan \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate				0.50%
2020 Credit Facility \| Term Loan Facility, Term A Loan \| Additional Applicable Margin \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate				0.50%
2020 Credit Facility \| Term Loan Facility, Term A Loan \| Additional Applicable Margin \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate				2.50%

DEBT - Letters of Credit and Performance and Bid Bonds (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Letters of credit outstanding	$ 9,500	$ 30,100
Restricted cash	265	2,570
Restricted Short-term Bank Deposits
Line of Credit Facility [Line Items]
Restricted cash	300	2,600
Letter of Credit \| 2020 Credit Facility
Line of Credit Facility [Line Items]
Letters of credit outstanding	3,300	4,300
Various Uncommitted Facilities
Line of Credit Facility [Line Items]
Letters of credit outstanding	$ 6,300	$ 25,800

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 16, 2022	Jul. 22, 2022	Aug. 16, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Mar. 31, 2020
Derivative [Line Items]
Amount reclassified from accumulated other comprehensive income (loss) to interest expense				$ 1,330	$ (830)	$ 437	$ (2,419)
Reclassified as an increase to interest expense over the next twelve months				11,000		11,000
Interest Rate Swap
Derivative [Line Items]
Derivative instrument sold	$ 30,000	$ 30,000	$ 60,000
Proceeds from sale	1,600	1,500
Notional amount	$ 340,000	$ 370,000	340,000	340,000		340,000
Amount reclassified from accumulated other comprehensive income (loss) to interest expense			$ 3,100
Amortization of derivative instrument				200		200
Interest rate derivative				26,283		26,283		$ 1,811
Interest Rate Swap \| Level Two
Derivative [Line Items]
Interest rate derivative				26,300		26,300		1,800
2020 Credit Facility \| Term Loan Facility
Derivative [Line Items]
Outstanding balance				$ 335,500		$ 335,500		$ 375,500
Principal amount									$ 400,000
Fixed rate				0.904%		0.904%

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Impact of Derivative Financial Instrument on Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain recognized in other comprehensive income (loss) on derivative, net of tax	$ 3,056	$ 30	$ 21,685	$ 4,905
Amount reclassified from accumulated other comprehensive income (loss) to interest expense	(1,330)	830	(437)	2,419
Other comprehensive income (loss), cash flow hedge, gain (loss), after reclassification, before tax, parent	$ 1,726	$ 860	$ 21,248	$ 7,324

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Values and Locations in the Condensed Consolidated Balance Sheet (Details) - Interest Rate Swap - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Interest rate derivative - asset derivative	$ 11,033	$ 0
Interest rate derivative - asset derivative	15,250	3,865
Interest rate derivative - liability derivative	0	(2,054)
Interest rate derivative	$ 26,283	$ 1,811

REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue agreement term	1 year
Revenue recognized	$ 85.0	$ 81.0
Customer contract expected life (in years)	5 years
Deferred sales commissions capitalized	$ 3.8		$ 3.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Disaggregation of Revenue [Line Items]
Revenue to be recognized	$ 4.0
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Revenue to be recognized	$ 10.0
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Disaggregation of Revenue [Line Items]
Revenue to be recognized	$ 8.0
Revenue, remaining performance obligation, period

REVENUE RECOGNITION - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 207,127	$ 210,398	$ 586,121	$ 614,380
Cloud and Edge
Disaggregation of Revenue [Line Items]
Total revenue	124,685	142,437	371,571	409,280
IP Optical Networks
Disaggregation of Revenue [Line Items]
Total revenue	82,442	67,961	214,550	205,100
United States
Disaggregation of Revenue [Line Items]
Total revenue	87,037	93,289	260,835	273,403
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	69,623	59,495	172,359	174,057
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	33,645	40,920	106,440	115,803
Other
Disaggregation of Revenue [Line Items]
Total revenue	16,822	16,694	46,487	51,117
Product revenue
Disaggregation of Revenue [Line Items]
Total revenue	111,152	111,726	305,809	322,744
Product revenue \| Cloud and Edge
Disaggregation of Revenue [Line Items]
Total revenue	51,321	65,587	153,081	180,100
Product revenue \| IP Optical Networks
Disaggregation of Revenue [Line Items]
Total revenue	59,831	46,139	152,728	142,644
Product revenue \| Sales to enterprise customers
Disaggregation of Revenue [Line Items]
Total revenue	33,136	20,034	78,056	67,225
Product revenue \| Sales to service provider customers
Disaggregation of Revenue [Line Items]
Total revenue	78,016	91,692	227,753	255,519
Product revenue \| Indirect sales through channel partner program
Disaggregation of Revenue [Line Items]
Total revenue	34,382	25,214	86,335	72,491
Product revenue \| Direct sales
Disaggregation of Revenue [Line Items]
Total revenue	76,770	86,512	219,474	250,253
Product revenue \| United States
Disaggregation of Revenue [Line Items]
Total revenue	42,373	47,134	128,056	140,074
Product revenue \| Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	42,454	32,234	95,392	91,751
Product revenue \| Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	19,077	26,087	64,471	70,714
Product revenue \| Other
Disaggregation of Revenue [Line Items]
Total revenue	7,248	6,271	17,890	20,205
Service
Disaggregation of Revenue [Line Items]
Total revenue	95,975	98,672	280,312	291,636
Service revenue (maintenance)
Disaggregation of Revenue [Line Items]
Total revenue	71,989	71,670	210,052	212,812
Service revenue (maintenance) \| Cloud and Edge
Disaggregation of Revenue [Line Items]
Total revenue	55,686	56,786	165,895	169,445
Service revenue (maintenance) \| IP Optical Networks
Disaggregation of Revenue [Line Items]
Total revenue	16,303	14,884	44,157	43,367
Service revenue (maintenance) \| United States
Disaggregation of Revenue [Line Items]
Total revenue	32,980	33,391	99,090	97,813
Service revenue (maintenance) \| Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	20,022	19,290	56,464	59,684
Service revenue (maintenance) \| Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	11,382	10,618	31,178	31,203
Service revenue (maintenance) \| Other
Disaggregation of Revenue [Line Items]
Total revenue	7,605	8,371	23,320	24,112
Service revenue (professional services)
Disaggregation of Revenue [Line Items]
Total revenue	23,986	27,002	70,260	78,824
Service revenue (professional services) \| Cloud and Edge
Disaggregation of Revenue [Line Items]
Total revenue	17,678	20,064	52,595	59,735
Service revenue (professional services) \| IP Optical Networks
Disaggregation of Revenue [Line Items]
Total revenue	6,308	6,938	17,665	19,089
Service revenue (professional services) \| United States
Disaggregation of Revenue [Line Items]
Total revenue	11,684	12,764	33,689	35,516
Service revenue (professional services) \| Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	7,147	7,971	20,503	22,622
Service revenue (professional services) \| Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	3,186	4,215	10,791	13,886
Service revenue (professional services) \| Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,969	$ 2,052	$ 5,277	$ 6,800

REVENUE RECOGNITION - Schedule of Customer Assets & Liabilities (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Accounts receivable
Beginning balance	$ 208,972
Increase (decrease), net	(63,441)
Ending balance	145,531
Unbilled accounts receivable
Beginning balance	73,945
Increase (decrease), net	18,358
Ending balance	92,303
Deferred revenue (current)
Beginning balance	109,119
Increase (decrease), net	(18,980)
Ending balance	90,139
Deferred revenue (long-term)
Beginning balance	20,619
Increase (decrease), net	1,566
Ending balance	$ 22,185

OPERATING SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
OPERATING SEGMENT INFORMATION (Details) $ in Thousands	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment			2
Segment Reporting Information [Line Items]
Total revenue	$ 207,127	$ 210,398	$ 586,121	$ 614,380
Total segment adjusted gross profit	112,811	120,916	312,752	360,714
Stock-based compensation expense	(725)	(588)	(1,906)	(1,412)
Amortization of acquired technology	(7,768)	(9,674)	(23,923)	(29,435)
Gross profit	104,318	110,654	286,923	329,867
Segment depreciation expense:
Depreciation expense	3,915	4,209	11,688	12,684
Cloud and Edge
Segment Reporting Information [Line Items]
Total revenue	124,685	142,437	371,571	409,280
Total segment adjusted gross profit	81,524	95,998	243,196	276,170
Segment depreciation expense:
Depreciation expense	2,753	3,018	8,153	9,297
IP Optical Networks
Segment Reporting Information [Line Items]
Total revenue	82,442	67,961	214,550	205,100
Total segment adjusted gross profit	31,287	24,918	69,556	84,544
Segment depreciation expense:
Depreciation expense	$ 1,162	$ 1,191	$ 3,535	$ 3,387

MAJOR CUSTOMERS (Details) - Customer	3 Months Ended		9 Months Ended		12 Months Ended
MAJOR CUSTOMERS (Details) - Customer	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Verizon Communications Inc. \| Revenue
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%	18.00%	16.00%	17.00%
AT&T \| Revenue
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
One Customer \| Accounts Receivable Balance
Concentration Risk [Line Items]
Concentration risk, percentage					15.00%

STOCK-BASED COMPENSATION PLANS - Narrative (Details) $ in Thousands			3 Months Ended				6 Months Ended	9 Months Ended
	Feb. 26, 2021 shares	Mar. 16, 2020 shares	Sep. 30, 2022 USD ($) shares	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2019	Sep. 30, 2022 USD ($) performance_period shares	Sep. 30, 2021 USD ($)	May 25, 2022 shares	Dec. 31, 2021 shares
Stock-based compensation
Authorized for issuance of common stock under the 2022 plan (in shares)										10,000,000
Total intrinsic values of stock options exercised (in dollars per share) \| $			$ 0					$ 0
Cash received from the exercise of stock options (in dollars per share) \| $			0					0
Total fair value of restricted stock awards, restricted stock units and performance-based stock units on date vested \| $								9,092	$ 38,879
Fair value of the assumed awards attributable to future stock-based compensation expense \| $			$ 26,700					$ 26,700
Expected period for unrecognized expense								2 years
RSUs
Stock-based compensation
Eligible to vest (in shares)			7,560,971					7,560,971			5,389,611
Granted (in shares)								5,665,068
PSUs
Stock-based compensation
Eligible to vest (in shares)			6,653,503					6,653,503			4,987,876
Granted (in shares)								2,228,073
Total fair value of restricted stock awards, restricted stock units and performance-based stock units on date vested \| $								$ 900
Performance Shares, Performance Based
Stock-based compensation
Granted percentage				60.00%	60.00%	60.00%
Number of performance periods \| performance_period								3
Percent of performance metrics achieved								200.00%
Vesting percentage								33.33%
Service period								3 years
Performance Shares, Market Based
Stock-based compensation
Granted percentage				40.00%	40.00%		40.00%
Number of performance periods \| performance_period								1
Percent of performance metrics achieved								200.00%
Performance period (in years)								3 years
RSAs and RSUs
Stock-based compensation
Total fair value of restricted stock awards, restricted stock units and performance-based stock units on date vested \| $								$ 16,800
Chief Executive Officer \| RSUs
Stock-based compensation
Eligible to vest (in shares)		462,963
Chief Executive Officer \| PSUs
Stock-based compensation
Maximum number of shares to be settled (in shares)		4,750,000
Granted (in shares)	1,333,333

STOCK-BASED COMPENSATION PLANS - Stock Options (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2021 $ / shares
Number of Shares
Outstanding at the beginning of the period (in shares)	184,169
Exercised (in shares)	(708)
Expired (in shares)	(11,609)
Outstanding at the end of the period (in shares)	171,852
Vested or expected to vest (in shares)	171,852
Exercisable (in shares)	171,852
Weighted Average Exercise Price
Outstanding (in dollars per share) \| $ / shares	$ 13.09	$ 13.25
Exercised (in dollars per share) \| $ / shares	1.77
Expired (in dollars per share) \| $ / shares	16.39
Vested or expected to vest (in dollars per share) \| $ / shares	13.09
Exercisable (in dollars per share) \| $ / shares	$ 13.09
Weighted Average Remaining Contractual Term (years)
Outstanding	1 year 10 months 24 days
Vested or expected to vest	1 year 10 months 24 days
Exercisable	1 year 10 months 24 days
Aggregate Intrinsic Value (in thousands)
Outstanding (in dollars per share) \| $	$ 15
Vested or expected to vest (in dollars per share) \| $	15
Exercisable (in dollars per share) \| $	$ 15

STOCK-BASED COMPENSATION PLANS - Restricted Stock Awards and Units and Performance-Based Stock Units (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
RSUs
Shares
Unvested balance at the beginning of the period (in shares) \| shares	5,389,611
Granted (in shares) \| shares	5,665,068
Vested (in shares) \| shares	(2,808,137)
Forfeited (in shares) \| shares	(685,571)
Unvested balance at the end of the period (in shares) \| shares	7,560,971
Weighted Average Grant Date Fair Value
Unvested balance at the end of the period (in dollars per share) \| $ / shares	$ 6.19
Granted (in dollars per share) \| $ / shares	3.12
Vested (in dollars per share) \| $ / shares	6.00
Forfeited (in dollars per share) \| $ / shares	5.13
Unvested balance at end of the period (in dollars per share) \| $ / shares	$ 4.06
PSUs
Shares
Unvested balance at the beginning of the period (in shares) \| shares	4,987,876
Granted (in shares) \| shares	2,228,073
Vested (in shares) \| shares	(179,184)
Forfeited (in shares) \| shares	(383,262)
Unvested balance at the end of the period (in shares) \| shares	6,653,503
Weighted Average Grant Date Fair Value
Unvested balance at the end of the period (in dollars per share) \| $ / shares	$ 2.87
Granted (in dollars per share) \| $ / shares	3.27
Vested (in dollars per share) \| $ / shares	5.02
Forfeited (in dollars per share) \| $ / shares	7.82
Unvested balance at end of the period (in dollars per share) \| $ / shares	$ 2.52

STOCK-BASED COMPENSATION PLANS - Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock-based compensation
Stock-based compensation	$ 4,841	$ 4,561	$ 13,495	$ 14,411
Product cost of revenue
Stock-based compensation
Stock-based compensation	133	96	339	216
Service cost of revenue
Stock-based compensation
Stock-based compensation	592	492	1,567	1,196
Research and development
Stock-based compensation
Stock-based compensation	1,289	1,223	3,735	3,010
Sales and marketing
Stock-based compensation
Stock-based compensation	1,567	1,581	4,418	5,207
General and administrative
Stock-based compensation
Stock-based compensation	$ 1,260	$ 1,169	$ 3,436	$ 4,782

LEASES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
LEASES - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Finance lease impairment			$ 0		$ 0
Operating lease impairment			0		0
Additional amortization expense	$ 657	$ 0	1,620	$ 3,368
2022 Restructuring Plan
Lessee, Lease, Description [Line Items]
Additional amortization expense	600
Accrual for future anticipated variable lease costs	2,310		2,310		0
Facilities
Lessee, Lease, Description [Line Items]
Accrual for future anticipated variable lease costs	2,200		2,200		$ 1,600
Facilities \| 2022 Restructuring Plan
Lessee, Lease, Description [Line Items]
Additional amortization expense	600		1,600
Expense recorded for estimated future variable lease costs	700		1,000
Facilities \| 2020 Restructuring Plan
Lessee, Lease, Description [Line Items]
Additional amortization expense		200		600
Expense recorded for estimated future variable lease costs	0		0
Facilities \| 2019 Restructuring Plan
Lessee, Lease, Description [Line Items]
Additional amortization expense	0	0	0	3,400
Expense recorded for estimated future variable lease costs	$ 0	$ 0	$ 0	$ 1,400

LEASES - Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
Operating lease assets	$ 48,079	$ 53,147
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property and equipment, net	Property and equipment, net
Finance lease assets	$ 43	$ 287
Total leased assets	48,122	53,434
Current:
Operating	$ 15,617	$ 17,403
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and other	Accrued expenses and other
Finance	$ 159	$ 503
Noncurrent:
Operating	$ 49,137	$ 55,196
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Finance	$ 4	$ 64
Total lease liabilities	64,917	73,166
Finance lease, accumulated deprecation	$ 1,200	$ 1,800

LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating lease, cost	$ 5,233	$ 4,996	$ 15,401	$ 19,027
Finance lease cost:
Amortization of leased assets	64	158	244	567
Interest on lease liabilities	2	12	12	58
Short-term lease cost	3,610	3,327	10,451	9,889
Variable lease costs (costs excluded from minimum fixed lease payments)	1,424	589	3,283	3,247
Sublease income	(502)	(510)	(1,439)	(985)
Net lease cost	9,831	8,572	27,952	31,803
Accelerated amortization	600	$ 0	1,600	3,400
Variable lease cost accrued	700		$ 1,000	$ 1,400
Variable lease, payment	$ 0

LEASES - Other Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$ 15,662	$ 16,509
Operating cash flows for finance leases	12	58
Financing cash flows for finance leases	$ 433	$ 736
Weighted average remaining lease term (years):
Operating leases	5 years 11 months 19 days		6 years 3 months
Finance leases	5 months 1 day		1 year
Weighted average discount rate:
Operating leases	5.70%		5.61%
Finance leases	3.20%		4.15%

LEASES - Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Operating leases
Remainder of 2022	$ 4,758
2023	18,301
2024	15,375
2025	8,158
2026	6,720
2027 and beyond	24,165
Total lease payments	77,477
Less: interest	(12,723)
Present value of lease liabilities	64,754
Finance leases
Remainder of 2022	98
2023	66
2024	0
2025	0
2026	0
2027 and beyond	0
Total lease payments	164
Less: interest	(1)
Present value of lease liabilities	$ 163

INCOME TAXES (Details) $ in Millions	3 Months Ended
INCOME TAXES (Details) $ in Millions	Sep. 30, 2022 USD ($)
Income Tax Disclosure [Abstract]
Benefit from release of valuation allowance	$ 6.8

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Sep. 30, 2022 USD ($)	Nov. 08, 2018 executive	Dec. 31, 2017
Loss Contingencies [Line Items]
Sale of stock grant interest			100.00%
Maximum future royalty commitment	$ 4.6
Maximum future royalty commitment	31.0
Maximum future royalty commitment, interest	$ 1.5
Number of former officers \| executive		3
Minimum
Loss Contingencies [Line Items]
Royalties rates			1.30%
Minimum \| LIBOR
Loss Contingencies [Line Items]
Basis spread on variable rate	1.50%
Maximum
Loss Contingencies [Line Items]
Royalties rates			5.00%
Maximum \| LIBOR
Loss Contingencies [Line Items]
Basis spread on variable rate	2.75%