PLANO, Texas – Ribbon Communications Inc. (NASDAQ:), a provider of real time communications and IP optical networking solutions, announced today that its Executive Vice President and Chief Financial Officer, Miguel “Mick” Lopez, is set to retire after a distinguished 40-year tenure in the technology sector.
The company has initiated a search for his successor, considering candidates both from within the organization and externally. Lopez will remain in his role until an appropriate replacement is appointed.
Lopez joined Ribbon in 2020 and has played a key role in advancing the company’s operations and strategic goals. His contributions were particularly significant during the integration of Ribbon and ECI Telecom, as well as the recent refinancing of Ribbon’s capital structure. Bruce McCleland, CEO of Ribbon, praised Lopez’s leadership and expressed gratitude for his guidance during pivotal transformations within the company.
In a statement, Lopez reflected on his time with Ribbon, expressing pride in the company’s achievements under challenging economic conditions. He emphasized the establishment of a solid foundation for Ribbon’s future growth and success.
Ribbon Communications specializes in delivering communication software, IP, and optical networking solutions on a global scale, focusing on service providers, enterprises, and critical infrastructure sectors. The company is committed to supporting its customers in network modernization, aiming to enhance competitive positioning and business outcomes. Ribbon also prioritizes Environmental, Social, and Governance (ESG) initiatives, providing an annual Sustainability Report to stakeholders.
The timing of Lopez’s retirement and the search for a new CFO are based on a press release statement from Ribbon Communications. The company’s forward-looking statements are subject to risks and uncertainties, including those related to geopolitical instabilities, unpredictable revenue fluctuations, and market conditions. Ribbon regularly files reports with the Securities and Exchange Commission, detailing factors that could affect its business and financial results.
In other recent news, Ribbon Communications Inc. reported Q2 2024 revenues of $193 million, a decrease from the previous year, alongside an improved non-GAAP net income of $9 million. This mixed financial performance was due to lower sales, particularly in Eastern Europe, and a delayed US Federal deal. However, the company maintains a positive outlook, expecting significant improvements in 2024 driven by strategic partnerships and market opportunities.
Ribbon Communications anticipates a 25% revenue increase in the second half of 2024 compared to the first half and has set full-year revenue guidance between $830 million and $850 million. The company’s non-GAAP gross margins are expected to range between 54% and 54.5%, with adjusted EBITDA projected between $105 million to $115 million.
Despite near-term headwinds from Eastern Europe and an expected revenue shortfall from suspending shipments to Russia, Ribbon Communications sees growth opportunities in the rural broadband market and programs with service providers like Verizon (NYSE:).
The company also emphasizes the strategic importance of its partnership with Brightspeed and the potential for growth in the IP Optical and Cloud & Edge segments. These recent developments illustrate a company navigating through challenges while laying the groundwork for future growth.
InvestingPro Insights
As Ribbon Communications Inc. (NASDAQ:RBBN) prepares for a leadership transition with the retirement of CFO Miguel Lopez, the financial landscape of the company offers a mixed picture according to recent data and analysis. With a market capitalization of approximately $514.85 million and a negative P/E ratio of -9.53, Ribbon Communications stands at a challenging juncture.
InvestingPro Tips indicate that analysts have recently revised their earnings expectations downwards for the upcoming period, which suggests potential headwinds for the company’s financial performance. Coupled with the fact that Ribbon has been unprofitable over the last twelve months, investors may exercise caution. However, it’s noteworthy that analysts predict the company will become profitable this year, providing a glimmer of hope for future financial health.
From a valuation standpoint, Ribbon is trading at a high EBIT valuation multiple, which could point to the market’s expectation of future earnings growth or the company’s strategic value despite current profitability challenges. It is also important to note that Ribbon does not pay a dividend, which could influence investment decisions for those seeking regular income streams from their holdings.
In terms of performance, the company’s stock has experienced a decline over the last month with a 20.49% drop, reflecting potential investor concerns or market reactions to broader economic trends. For those interested in exploring the full spectrum of insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/RBBN, which could provide deeper analysis and guidance.
Ribbon’s commitment to ESG initiatives and the future growth prospects emphasized by the outgoing CFO may serve as foundational elements for the company’s strategic direction. As Ribbon navigates these changes and the search for new financial leadership, keeping an eye on these financial metrics and analyst insights from InvestingPro will be crucial for stakeholders and potential investors.
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