Ribbon Communications (RBBN) 28 Jul 222022 Q2 Earnings call transcript

Greetings, and welcome to Ribbon Communications Second Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Bita Milanian, Senior Vice President, Global Marketing. ahead. go Please

our McClelland, welcome conference and at second XXXX Financial are quarter Communications. Mick Officer; Good Ribbon’s Lopez, I’m outlook to contained on Bita results and Chief Bruce today the with this slides cause the could call call. quarter of on Marketing Chief statements. these in XX-K. risks Milanian, I financial Executive Also and XXXX financial for afternoon, statements. Such the business uncertainties full Ribbon’s Ribbon’s filed forward-looking including matters SVP Ribbon Officer. currently release those most that our uncertainties will Safe be actual and rbbn.com, in website we on our forward-looking Slide conference Today’s where webcast available. and third included Investor including results the both to projections will is for and being call. are to press supplemental and at are slides discussed are Relations and Certain call our to today, Harbor the recent statements discussing differ documents live subject archived our risks section be are statement X of from of refer year materially Form SEC, the supplemental These the you

as are well to to turn And Investor I In measures like as the slides in included we which call are our Relations over non-GAAP to we information again, the available section financial both earlier for of Bruce. now, will prepared press today the on website. call, addition, this would earnings Bruce? the conference supplemental present we applicable the on this GAAP issued Reconciliations release in call.

was remainder our and with with $XX to the particularly us million. products adjusted the Revenue everyone quarter increased increasing of in transformation $XXX led quarter second outlook our versus Bita, by second year. financial the for for Sales IP within Thanks, discuss sequentially in Cloud line our results joining with Great. the had expectations results million over performance over We and and had quarter this solid our and XX% to quarter a first North guidance. strong our and today thanks was America, network $XX quarter increase we voice sales million Edge XX% of EBITDA in & quarter. services year. And a sales in

As tens next went Verizon American good we North note, quarter well Verizon the transcode with the particular carriers. GPU-based border Ribbon scale space. This of supporting very voice leadership had has a generation with into as Wireless, milestone as Tier other A hour. millions SBC sessions major our NVIDIA of with controller full underscores session anticipated, per production a X in was technology and

though were and in equipment deals European North movement quarter, compared on anticipated were which related second get routing the optical a in of of network Our and in margins even third Europe sequential the lower second second pipeline quarter IP we’re in X% first in the we than the of quarter half, quarter, quarter. sales us mostly but optical from the to the IP had sales IP a sales. move plus strong quarter quarter to Earnings projecting increasing with to to product of sales, from X mix expect substantial particular, sales quarter. third start of benefited deals into into growth In in the July, will as results. XX% good the off end the Europe increased we optical increased lower area with We software of software XX% India the third our points the and fourth for cloud along due half as Based total Sales bright us. sales the growth quarter, improvement to focus margins in America. year. in to the for in in meaningful the XX% in compared as second this still XX% strategic IP niche XXXX, segment the well June versus the

of effectively anticipate continue but We with with a amount of accomplishments over year. the we’ve customer chain and months. future still I’d to to several shipments variety perspective, the quarter, manage as supply approximately continue a logistics components in rest the we expect improvements are on long the $XX lead quarters, of quarters, times last the variety From the at of several to comparable million. managing challenges last as over seen year delayed a progresses, a We key that several notable least like highlight modest to

routing quarter earlier, similar we priority. their management Verizon strong fixed infrastructure, very SBC, policy, adding with a had supporting mentioned network the and modernization and with Wireless, network. voice their remains for well engagement a business as high Verizon, And have network capacity customers, of voice as we Verizon a As

telecom core applications we infrastructure to the such develop to large deployed leverage addition as analytics new and upgrades, advanced and infrastructure. management growing identity In our continue that

established assured complex the and have countries. example expanding pipeline. a of And web with passing with with infrastructure or this handoff technology very phone in project developed in the pleased opportunities protocol We’ve into digitally large a and Telco ahead to global be platform. telecom and deployments important U.S. more more opportunity robocall security of the the really call a wins evolution competitor can broadband receiving of the voice problem. leader the identity ITF calls, initial a base identity by the solution. area to Virtual the cloud-based originator. Another in consumer of with STIR/SHAKEN recent legacy thought in Ribbon replacing our of through And was STIR/SHAKEN Kong ensuring issue an of X project Cloud networks, as the France gateways, call the The that our the validates it other is management Hong win enterprise solution, to switches the is CXX includes was modern similar This as a in fully Asia. great transform

Israeli reported optical had the we optical in security in the a new optical types is expand go built Europe. we for expanding be Partnering commercial the one to that partner with look others. to for well. pipeline R&D data with infrastructure we’ve being wind our we Neptune opportunities operator, In on Tier for the spent keep the growth MEPSO, Ribbon providers, and of These also National We position Swiss company the wavelength lines. traffic. cost In in with additive by wins enterprise harden And a network who as with a market of North Army, recent Neptune total with Mobile, ongoing well providers a the a America, Macedonia. to Lepida And with optical first all solutions. annually. transport Axpo, need capacity, and per a And was to network innovative significant capture leading IP deployment of Lepida In Italia but active upgrade provides telecom really to America northern provider as to in Texas And the announced out. Force Lithuania incremental continue Italy. network our includes choice America, the public also Rogers large traffic position deployment core with to network our project of down deployments share Telecom will their a continue at in at customer particular, and a the critical with and very Railway build operator and with support have XXXX. invest as expansion exponential strong both selected continue we’re to late services utility This is that making at North Working communications using XX% been infrastructure our entities our our expand to in project provide product very no our infrastructure pace is and wins drive investments deploy IP presence with strategically, A&M, X significant across in building the vertical university. on the features very large cost LitRail mobile networks. they there’s of IP network private enterprise networking and had more in electrical broadband bit. will leverages infrastructure product. Swedish routing this many to service their optical technologies good into SNCF, But IP to discussion Telia, new want initial in ownership regional CapEx new North combined XG that IP in deployments and Apollo Defense industry critical the transport growing our almost This

routing delivered of Ribbon quarters. being pipeline the next stack access our In to have major first new series. call a the the Flexible large we mobile of our of we’re of This requirements, and enhancement of new XDR we quarter, Routing. underway. expand Neptune second a We have In quarter, support the operating converged Disaggregated significantly as broadband the trials in protocol XDR over stands aggregation. series and addressable foundation we will multiservice customer a introduced system for XXXX networking to the several products market XG IP introducing many third a routers network

infrastructure is mobile of targeted networking, services platform business. new variety XXXX, business, first TDM-to-IP pan] XDR The ethernet including additional transformation, and is [SGS XDR with our routing which the XXXX for X family is for [ph] industry. The win the over the of at products, applications in telecom of introduced four to large being expanding IP ability months, the first portfolio business platforms a dramatically significant and next the a

level RFPs, XX across competing the XX we last X of are to As have XX major The carriers, call, activity mentioned expanded earnings from all Tier over IP with mobile last of has customer and our number telecom optical regions. high for a we days. our

last both with quarter and strength, to and The routing both XXXX, assurance. increased continued the a already customer political is there’s POCs supply global of products. technology in the that new wins in expect optical chain trials complexity, IP on IP have and combined double transport IP optical of And of number heightened We portfolio having real from number of supply particular, with significantly. trials challenges focus XX the a versus year, in number the exceeded XXXX the included

of introduction and strategy network Our the our our a simplifying products Muse here, platform central supporting existing an into multi-vendor is environment. to

over result, to the we year provider pay quarter. increased service Mick? will Mick R&D to that, a provide Tier quarter I’ll detail on second making discuss half anticipate evidence back the that turn results, in the is continued come our X and to With third second on opportunities are continue increase to then it stronger a for this off. additional and we significantly guidance As investment

quarter which second results our We were Ribbon of million. guidance was had our the cents XXXX, was generated which EBITDA per In Thank $XX slightly guided adjusted an million. within above guidance, you million to was $XXX million, to at share Bruce. million, This adjusted $X.XX top our of the very $XX of $X.XX, $XX an of line led range our of with to much, the revenues $XXX again to of $XXX of in financial which guidance midpoint of earnings million $X.XX. of

always, Relations our supplemental our and website summarizing As refer XXXX please quarter performance. to second Investor historical slides, financial for

GAAP new a $XXX rebounded X% projects year, quarter-over-quarter, let’s quarter. levels Edge commentary from in our Total customary, last large the for As low revenue results was XX% Cloud with revenues seasonally from quarter. it’s & first the up about telecom but down million, start

Our includes Communications sale Virtual a our million the Cloud now Technologies quarterly of company’s quarter balance $XX for AVCT million the non-cash worth AVCT the $X.X known Kandy of investment the business on in investments associated loss as from second sheet. of in The XXXX. with American our loss GAAP mark-to-market is

to and integration difference $X we addition $X in assets expenses. amortization other non-GAAP results, the incur as million GAAP and to usual the such factors In restructuring non-cash in compensation, million the of our intangible contributing and between expenses

XX.X% our software in above quarter results was strong from the down million, point from is Edge. $X.X Cloud on $XX adjusted sales expenses of Non Now, range benefited The margin second and adjustments GAAP XX.X% of basis. benefited which let’s gross to basis by in mix quarter to due second to XX.X%, about decline which million, accounting insights quarter & non-GAAP year-over-year guidance operating first XXX our was entirely networks, accounting quarter an provide for one-time of XXXX. accruals adjusting Non-GAAP optical product one-time in the XXXX. that OpEx sequentially after were IP the several attributed second

been earnings offset EBITDA million in making flat R&D diluted was the investment and $X.XX. been non-GAAP has we’re quarter, Our in efficiencies adjusted comparable expenses areas. by essentially per share The were Non-GAAP IP incremental in year-over-year. was $XX largely optical other

million shares, cap basic million share our XXX shares. was was diluted share Our XXX and count

was half the XX%. jurisdictional non-GAAP that overall increase is for to reflect first XX% due to tax XXXX non-GAAP giving XX%. quarter a Please guided North rate guidance remainder that us previously of should XX%, our Our for get rate The rate. the adjusted cumulative rate of our now We in an rate America. tax of change towards income note in the

Cloud service and Now, looking at telecom second [ph] XX% by at revenue Quarter-over-quarter margins the a year, $X Product by driven or business up our results versus percentage $XX revenue up million. contributed down operating XX%. were prior X expenses as was the an Non-GAAP customers. million, Non-GAAP basis $XX X% projects adjusted million several million million. first as software $XX our of Product steady professional strategic quarter of XXX segments. for of & million was XX%. we from million revenue XX% $XXX and quarter-over-quarter, lower Edge or Cloud remained business, million transformation large the to Year-over-year major EBITDA quarter. our revenue of revenue was by $XX our continue EBITDA restructuring was Maintenance $XX up results was of margin see network $X & revenue sales total and XX% gross was with points In year-over-year. Edge grew initiatives. with

optical prior the recorded IP same business optical million a second $X results. the we of service continue XXXX. gross costs. the of prices from but Last million, $X to million lower in delivery quarter-over-quarter. that revenue for quarter $XX gross Non-GAAP to as of We down networks warranty IP product XX% experience versus was previous costs. our year’s the chain supply an costs was which X% year, and turn and second or mix, component logistics increase decrease high quarter affect quarter, XX% our Let’s margin benefited the from XXXX, grid significantly record transportation regional margins disruptions of lower and In but

in the some improve are chain see our gross margins stabilization therefore to of the we expect throughout and quarter expedite as fees mitigated. and However, supply revenue year third component the increases and

from second product providers of XX% of Now, revenue. quarter. here some revenue consolidated represented in our customers XX% of key Top Maintenance company metrics XX% XX for the for were total Service accounted the revenue. enterprise customers the provided and customers revenue. to represented a IP book-to-revenue one XX%. approximately XX% of times, revenue had several International third delayed were We orders excluding maintenance quarter. of Europe large

continuity, during integration $XX our million which in us $XX term have development. million the to $X has gave loan, our continue strategic $XXX as the to or balance, invest $XX mainly business. and increase down $XX in A the This it’s covenant flexibility million for voluntary, end. increased metrics been financial including our the and capital cash our and expenditures critical efficiencies, networks. revolver pay which debt optical of cash for decrease million currently invest Major for second million we IP quarter pay optical term million the facility down, quarter We from parts loan, in cash. a outlays beginning at at XX% and in million continue amended inventory million research optimize of in remained business $XX we for equivalents restructuring off growth $XXX restricted sheet. $XX We charges credit million cash undrawn in with for our include of million, IP $XX balance original quarter, the more Turning as $X of outstanding, of and or million, year ended paid is to we as and

of amended The times our our quarter. the to ratio versus X.XX third X.X per ratio As of calculations credit in minimum quarter times maximum second times charge decreases of maximum X.X XXXX, our and a X.XX X leverage versus times. facility was fixed ratio for a the times leverage coverage was

evaluate in enhancements considerations, strategic structure previous compliance ensure As continue continue economic earnings we while we capital credit to investments. financial to given volatile the will geopolitical we our call, stated markets, facility

to Now, to the turn call I’d back Bruce. like

Mick. Thanks, Great.

have results around the with Cloud major we strong in foundation world. Our & the demonstrate the in business quarter carriers second Edge our

to expect half the As of the customer investment our start benefits significant IP the POC we strong enter second year, see and to by optical development, activity. of we product the making in we’re supported

large growth with to product in region. with anticipate important customer. Europe and the XG with critical upcoming infrastructure and with we investment foundation project and both of further the in a From significantly of Defense we to agreement projects. an mobile setting provider IP of half grow for regional a with a opportunities continue cycle of Israeli in a and the We driving the We a year, this service India expect presence operators growth we’re expand perspective, future regional stronger finalizing particularly second fourth business XXXX. the And key optical beginning strong with funnel extension combination Forces, our tenure support our quarter

service We And growth traditional and and and of the expand telco expertise government performance North Modernization provide such our providers with Verizon in in professional contribution migrating as fourth second and and present solutions. year Cloud continued partners should our unified strong Rogers expected & part cloud, of of the opportunity portfolio. with the seasonably a several broadband upgrade infrastructure, services, on who The for half of U.S. have second federal from significant future high and their as ongoing that analytics share. land communications quarter In of IP have expect agencies such and we customers as routing we the to Edge very projects be a and to margin the we strong to our us, projects business, enterprise the communications driving half, telco for U.S. AT&T infrastructure well in strategy continues with infrastructure providers cloud starting revenue establish this enabling Similarly, a unified demand this Viaero the quarter. for growth. expect are as expect in positioned key awarded America our a we regional win to introduction heavily a large strength from is growth investing of continued we’re Wireless, to well host improved the new market.

growth backdrop, of of opportunities larger for to accounts are to close gross above foundation $XXX million continues the fourth we’re investment $XX to in to million; Fortune products XXXX of $XX for activities of in With funnel and million. with in $XXX new the a range revenue and grow our margins XX% Our we’re adjusted to expectations making in projecting third The and establishes great quarter non-GAAP several deals quarter. combination a of XX%; follows: XXXX. that the as million EBITDA non-GAAP that

our We’re well a quarter quarter, expectation third our on full targets for supply the fourth date, strong to as of based to as elevated also the year inflation operating pressure continued outlook costs. on results adjusting costs our continued and chain

of remarks expect a can million of of non-GAAP year, For half forward now XX.X%, Operator, now concludes and complex and for Ribbon $XXX $XXX Non-GAAP take to I’d our few gross million. we margins operating million the of to revenue look a environment, to our stronger EBITDA thank a and questions. partners XXXX. range the $XXX team and $XX to second XX% navigating prepared entire that adjusted we like million. full a to in

Company. question a & Silverstein from your Our be [Operator will first At Instructions] conducting this time, proceed question-and-answer we Paul Please with question. is Cowen with session.

I one question, for primarily a one guess, and feel then either Mick, primarily got Bruce, I’ve of free you. for you, but Thanks.

demand Bruce, give in all, the portion, optical between all seeing First IP insight the you portion you’re appreciate the of some disclosure, I trends? what the additional can terms business, IP on the of of business optical

expected the as Yeah. grow progressing. Well, you’re both are to Hey, second Paul. half

little the we’re particular, in indicated, increase kind growth think presence larger great portion, So, substantially revenue around midterm, of becoming a I that kind on about the IP It’s of around fact, of and POCs larger opportunities, business. I would expect it’s If the of kind of in though, in a larger customer share. definitely funnel I the that less than strategically and part guess, a really and a IP today. a becomes of out I’ve there, little half see to focused more the opticals

I the pretty Yeah, margin is assume structure different two? the between

equal, being products things and a optical. than be around margins of we to all IP think little the some traditional expect stronger in new the products particular I the

margins around but portfolio. on it out to depends putting network line little it a optical a whatnot if being, optical know, they you be things bit are, the putting transport in so brand As and the IP the system out you’re a can you’re bit, lower all mix, and little new stronger tends move are depending

apologize, have getting IP may margin thought the greater would just of been would I’m sense gross I optical transport significantly have the but the a you, IP I I stronger, than But that portion Bruce, have case? which perspective a the portfolio. is was from modestly from misunderstanding of the not

little that’s I it bit and can Again, a probably it, margins much in on can more depends be the somewhere if undersell mix timing. to the It’s for sure, don’t want the positive. be between,

So…

Can reasonable XXs, in IP not if margin be that a the from I ask assumption would a a question it portions the XXs perspective? this gross the way,

much. Yeah. being sure. going it’s know all the be point if that I than things don’t equal, it for fine I But a really better on to put to want optical, Paul,

All on. right. move I’ll enough. Fair

For optical to to saw if read numbers that you, the respect margin I was Mick, that forma structure, pro correctly, with down XX% I or correctly? basis the

Right.

were we year. the where as same first quarter XX% this in of at were we So

Yeah.

improvement? to your same you’re get as terms I back is as could understand in others to the a other where in what both glide as well from But So visibility with question and that is visibility supply impacts, as that the to path of improvement boat the chain stuff. you

Yeah.

manufacturing. other those pretty as up of pointed the IP of into of we’ve volume you of going range. back the absorption And with for second half and as higher around comes that half that moves the upper-XX to mid- modest good out, fixed to year accretive as just well confidence the increase cost from us. grows, of So the margins as the half costs that’s And of associated mix the is products. improvement the be And the portion the some around business some

So we’ve of pretty we’re improvements second year projecting. and in got visibility good half the the that the

one about All if everyone signs right. One was no expensive and macro customers for which there’s you and weakness, saying? are it you you’re point, you going understand and at me, so? What is is this other but this communicating U.S. last At projects where Any referring? worried that are abroad. currency point, suppliers about even tiers otherwise, the doing might macro obviously, to what projects, canceling say issue, more thinking of translation are

exact with Europe, to XX Paul, these trips projects I cetera, question, I And invest, several can a get into you tend to response the Asia, them Yeah, last meeting the the I’ve lot is, I they’re continuing et longer over been the road be days, customers? same term. asked on tell

a you so capacity broadband up, you do And cetera, and you you turn off don’t and that mobile a overnight. as et know, to start ramp upgrade, expansion, on

We’ll at the does see, of from cetera. But kind absolutely cost cost really grow continue and pulling signs bit, obviously, to how lower here And move technology the no this at direct ownership, CapEx really can robust. back to demand bandwidth has whether continues X of can lower really no exponentially. the there’s plans, on a I choice macro capacity feedback over to world that change you curves, the et on to add the customers stage, so to importantly, turns tell the pressure months, you there’s level of been but per XX More profitability, investment. more and next next

implemented? you everybody are And you can remind increase the price you a Bruce, me, else Or all implementing planning on has? have way

of question cycle prices price necessarily. portfolio, the kick a things. we’re have competing basis. next know, until you or remember, of though so new raised we contracts, don’t to flow a those sorts of quarterly last increases our I kind on every really win a we that, maintenance comment depending I renewal had business, call, the the think you’re across to our Yeah, on into through aren’t business lot on on contract I deal also necessarily next out those going effect And, will and,

So…

Just way… calculate the

win don’t out kind able prices contracts as effectively. We business. to of You’re have to long-term where quite you’re adjust

So, for want an to major compete in we we’re going to accounts. Tier alternative be business these X and

looking here. And really we’re out to aggressive and grow being business so the

meaningful the I assume increases that answers time is, at the some related like in translate some in price which margin not future expect to into question, your it sounds we step in up should point structure?

and Well, good visibility again, where I on think we’ve from, comes growth that. we’ve described we think the got, margin

those evolution market. the an to increase, the base costs time through over there’s have flow I as into think

particular, And, share. removed in opportunity as to equal the being expect I well. the big a all key from in competitive the of and one dynamics over perspective, And is positive things so is that around think, we think think time. I suppliers OEMs gain from Chinese of that’s a the perspective, get network, deployed though, happen grow in And, that the from again, things what seen as do are internationally network. being a some I pricing market we’ve to

not any an awards you that Bruce, related been we’re if a huge see have India, always to Have have revenue, in wins, whether Huawei? we’ve to those of anywhere yet presence directly obviously secured been else, you

line? Not yet. The short answer is, the it yes. moved There’s Has dramatically no question. top

yet finding mentioned lots market. RFPs opportunities Many that the there’s of I flown of new I have associated the suppliers that not think, in through. with are

the the being going most So, ahead both competing businesses OEMs actually Chinese wins still. business think, either definitely network I us in or from its new we’ve with associated of removed But some had for of of forward.

on All your expecting Are really impacted inflation I costs the labor has I queue? anybody right. costs? question. my And last Mick, waiting will you impact a labor But, make yet? apologize, meaningful in this

costs, absolutely. only costs that Yes, our it going us. own towards labor. significantly. costs in that in labor we own noticed freight And transport components do the see see labor, has hardware but come our not been Obviously, in that just also up We contract not our in are and but we’ve up,

add FX as well. the gives we there in non-USD obviously, helping have any by that perspective, as balanced. business kind are From impacted our dollar. just that some hedging, I’ll of of hand Obviously, expenses comment non-USD a from that. keeps U.S. well a can natural to have But stronger benefiting it bit priced be us and we a

As of And taken Mick projection. outlook as with a inflation hits account, everything. you’ve said, lower and year margin we’ve into seen full our that kind

So…

that, dollar And might if But sales, in benefit I you’re our dollars. are absolutely competitors we are that could where be approximately most of there add Paul, sales our correct, to And XX% denominated pressure. our dollar also denominated. from of a also competitive

guys. responses. the I Understood. appreciate Thanks,

Thanks Paul. very much,

next with Our question Tim Savageaux your is question. Capital from with Please Markets. Northland proceed

about RFPs. and if what TAM of have a opportunity And and of, additional wanted seen there if a sense it’s as quantify RFP increase the I’ll terms Hi, we’re perspective, to relative that RFPs, of I I from XX% I maybe to increase get sort you well. you think pipeline, you could doubling you XX to XX. a talking to dollar possible wonder good try in on think And numbers number a afternoon, of sort I kind what of of there, wonder I perspective the follow-up. or start might from talked to mentioned, proof-of-concept,

Yeah.

appreciate Tim, the question. hey, So,

with of the really in referring got to whole global a particularly a critical customers all major Tier So sense. first in infrastructure, robust activity are here, obviously, been a these critical in Europe, scales, with funnel the of all, I’m for fact, but in different large infrastructure RFPs the names, has X these we’ve us, carriers are

dollars And is of types our an as so in their basis. around optical measured – products in total the on in spend IP and billions of annual

on of alternatives, Chinese out we’re there they level there’s supply a that’s different to for necessarily spot reevaluating necessarily, activity partly of as the that’s sure saying carriers analysis customers sweet a of a where political not gives variety base. have around because base supplier situation you alternatives, the our or fit concerns, manufacturers, I’m their that’s lot Now, as making their look going even and that evaluate partly of just assurance of going but we what just have are supply because win

And product. large a And, our what that to their one in either something remotely significantly proof-of-concept sell significant for help on lab, mean? And our perform, network? like really a in How It one they evaluate considerable remember so to I how and us. interoperate can’t amount nothing or work? them POC do competition? hands-on which product products a of like the they how the for a needle products, it it’s individual our lot in would with they are, spending From how of support this any I whether have working us. they at think opportunity A a do But, perspective, we’re the the lab XX is engaged maintain does in year. we of There’s them customer their the means, unique getting trials customer time, with slides. team our move with

I’m key about portion so we’re double real other indicators. us year think a related number We’ll excited of POCs we the do doubling number IP a, versus the on grow probably in And portfolio. into, are that, seen last those for we’ve that that that’s I routing a year. And area to of in again, POCs, strategic I think, real meaningful so kind particular. metric this and the And, doing one to of

Okay.

it of in RFP So kind pipeline. you’re continue X grouping like might, Tier it this sounds that deals major be to these

is to or like might if it fair somewhere be sounds say the that range? RFP of value by number the it the dollar as well increased opportunity may have So XX%, in of

Yes.

those help last relative what you have to QX I which would on deals you the some what Great. I and also X.X? would maybe come Quickly, European the talked in to to wanted try kind degree And think been push about, deals of do that. – to of I in you some your particular, degree, saw from guess, was quarter, what quantify the had book-to-bill or of amount big you reported

probably that, of of second the in that. million, would of than a by movement the some the end gotten range a out little Yeah, bow $XX just probably of took have of quarter, were those shipped but that would orders the all more on we in have quarter. Not it the

So our book-to-bill that I another, added on XX don’t would that. like have points know, XX to something basis

pass along it for I’ll Great. now.

Okay. Thanks, Tim.

question. Shinger JMP Securities] [Eric proceed with your next question [ph]. from Our Please with comes

And what on you taking one. last say quarter? quick for thanks book-to-bill follow-up Did the Yeah, just a the for this the question.

book-to-bill. X.X Yeah, well. it, basically think right think, not sure, in deck at it’s on I for Mick the website mentioned on I as the but our were we I’m

XG the the little network? are Can the carrier of talk right part a of about terms kind between in Where great. access bit now? on Okay, of transport the we kind spending of focus you and

a by obviously U.S., Well, varies XG region. the I have all it’s a in carriers non-standalone. here it XG I the lot mean, think launched major a service typically

network adjunct So using spectrum currently XG farming to they’re for additional cases, In adjacent it’s a an the or that current capacity. kind of lot spectrum using. of

yet. good mobile being a to goes of And and think support were example, XG even to that in turned XG being lit about in infrastructure spectrum I prior Many very their in been launches. hasn’t up the Verizon has obviously technology public on. the the today. the regions started As AT&T, deployed

are spectrum market, If you auctions just India this the XG at look starting quarter. the

deployment, none think, more place has focused the partly share, even been I we’re really the making the I area win on support capacity in really in investment products that that new of XG But that’s these and much we’re positioned to IP network. us more secondly, put yet more an mentioned to capturing my space. infrastructure adding in So in better of to remarks, XG, because business the

your early on quite around And So Eric, depending answer investment but in different I cycle XG. on we’re the question, I think innings still the it’s region. the long think to

the Huawei discussion, Europe? of How which displacement then Huawei Very think opportunity about in much I regions, there is on Europe? lastly, good. And it for said India, what

the in both alternatives spins, yet. that and because have multiple making as a network. a will technology Huawei on I major things a sure nobody that is have already a very There at think, you country. deployed how and are it panned that network countries allowed in are There that RFP are going – other as to well I [ph] people sources, have different not little of major some decided not countries evolve. opportunity, supply are a But equipment looking kind Well, large it the they depending tell and change again, from perspective knows can activity have Italy, will be Spain, again, Germany we Chinese the perspective, other to portions there’s political of be et cetera,

So looking flexibility supply at chain. just alternatives and engagement, lot of a sure in have their making they

didn’t Okay. incremental difference Then last too constraints one, the Is from ago. Or front. indication in on incremental much chain like there’s supply you changes? just It any improving? any are were things quarter comments suggesting of a sound there terms that

able a the second smaller is find certainly first limit to haven’t last elevated. relaxation less have or time. The And the been minute complete cost to seen we’ve that certainly quarter, costs expedite-related what increases be to around base whatnot though, than the year. to half We’ve components seen the expect to continued a be here improve able component of able and been any much number logistics quarter we in than production. to that and where in they’re the we second we’re have scrambling so we Yeah, period of components, less individual costs, for to quite

expecting the a and Again, some cost lot of of we’re improvement and fixed a of the we’re around So that’s dramatic margin lot volume, forward, is deliver. the on absorption not what of costs, what in there. manufacture going expecting improvements the increased

Very good. you. Thank

All right, you. Eric. Thank

question with comes Capital Northland Savageaux next Please proceed Our Markets. question. with from your Tim

to to segment would of moderation Yeah, a sequential that annual just you do on just the little QX And make increase guide, QX I I expect, think, follow-up heard QX. a clarify the But had looking the And versus IP growth expect know right, side cloud on just of sequential that with this think want optical imply Thanks. to you mentioned I wanted levels. you repeat sure in IP to after I regard want I in in in some these might been to issues the and guess QX XX% front. further optical guidance kind new you I growth there, that change strong and outlook. for, double-digit QX, commentary

as you’ll we optical, Yeah. light break as I yes, year Good up And both so in the question, number. you little bit totality. numbers, XX% think I from the kind half down double-digit second QX IP & Tim. the the a in QX versus We QX the Cloud yes, the first the think of number, – expect Edge see, on growth of and is half second half a

to a and the kind costs margin line component because we’ve is more, come of the of way. will a else. of And, if we’ve a expectation get you earnings kind The chance follow little everything the once as numbers had the discussion the of down top again, primarily what think guidance, parse done just it little analyze you bit. I on on model effectively full kind gross you, that lower numbers, year So moderated again, based the

in So the analysis change the on I more top-line, there’s see earnings the here, think a much on line. little not that’s what you’ll but conservatism

much. very Thanks Okay.

Tim. Thanks,

Kang Our next question comes proceed with from Please B. question. Riley. your Dave with

Thank Good you. afternoon.

be say one question now? the is forward? How you’re do on is First percentage expecting fairly currently think can going big what’s India maybe from India, growth you year revenue of and good

as of particular, but a that range additional business, half, going in range think the nicely. deployments, had about. India India little here. variety project routers check growth the there’s increased that XG in numbers far can projections that total the in kind both And we sales. – as the around anticipate site second continued with second there’s we the I’m the opportunities but XX%, And portfolio, transport with customers, Yeah. around quarter-to-quarter, It have Hey, XX% a portion from long-haul Mick as I core as less force than of vary, But well little is Dave. in business we excited ballpark. a of quarter forward, opportunities cell fairly it’s the my of the maybe a of obviously, pretty IP around that in had will

growth second we to And as half, in just segment get the that more our looking forward well. into not of we XXXX as are in business, so, but

Hey, just follow-up… a Bruce,

And how ahead. much – go

been X% of to we’ve averaging last It is XX% couple around X% that quarters.

Yeah.

is to say Okay. that much of And replacement? just Huawei/ZTE mean, I we attributable opportunities, how

in think had there Well, have I history think the had is quite there’s of that related years, in number in mostly around a core that replacement consistent opportunity there, for companies to for we that, network, region much long market. business position the I the the we a which more growth Huawei

and courses, the haven’t we for So the more was this of portion are of And new we’re that around those long-haul their lot focused network here ahead I vendors A significant putting around portion a of in the the metro us. place focus point. captured originally opportunities and think really still at optical access.

And rough should think the products? both business, XXX is between how about we it. for opportunities your then XXX the growth versus mix optical regarding gig? what Got And

XXX actually generation and obviously, gig we that. for lots the have able rate. to traction, it’s it’s we’ll the to portfolio. head, next the kind in But It’s if have that don’t more sub that have number see offline getting my of is we foundation blend, can go pull of I on solution do a

network. XXX, So and get the it solutions optimized have more at and XXX, that will gets portions XXX, used in of other optimized we reach deployed performance

So question, analysis that ought to do more Dave. some on

going on should next does year, it be tax Or we think that last it to the for Mick, level? is And still about come then [ph] is How XX% question, down? at Okay. second. rate,

guiding high started so range where And range, come us I year increased and XX% more normal we year, as U.S., in what next more would be will other say guided it we incredibly improving say would profitability that expect our rate. to this less the XX% I or hopeful with put down it we jurisdictions that’s of would to in in for then revenues. XX% We’re that outside start

if just onto the non-GAAP tax Mick, I that. rate. add That’s

rate rate. obviously tax kind to with other that’s cash the It’s this world the not EPS non-GAAP how it’s numbers. earnings from get of you tax associated So

cash I it So don’t the rate. to want tax with confuse

have taxes million the $XX year, to it over similar. in $X been range Our years. expect the past million this to be we And cash

However, as you know, there is a…

out there… Legislation

not that there out increase of lot for other a may just us for it Legislation countries.

Thank you.

All Dave. right. Great. Thanks,

turn Ladies and the question-and-answer session, closing for and gentlemen, call we to I Bruce end would of have reached over now the like the back McClelland remarks. to

on next to over very thanks earnings again us the or much, the call. that concludes Ribbon. thank that with With that, and and great, our we future have our XX days forward look everyone being of operator, you calls. speaking progress operator. for Thanks in XX you the call Hey, and keeping upcoming conferences much very during with you abreast many Really at of the interest

concludes today’s conference. This

lines you your your participation. Thank at time. this disconnect for may You