Ribbon Communications, which initiated a restructuring and issued layoffs this summer, reported $1.65 million in profit, up from a $10 million loss, and a decrease in revenue for third-quarter 2019 compared to the same quarter in 2018.
Revenue was $137.6 million, compared to $152.4 million for the year-ago quarter. For the second quarter, Ribbon reported $49 million in profit and $145 million in revenue.
Ribbon’s restructuring initiative aims to further streamline its operations and improve delivery to customers.
“We have recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing our worldwide workforce,” the cloud communications provider said In its earnings release. “We review our restructuring accruals and facilities requirements regularly and record adjustments to these estimates as required.”
“During the third quarter, we saw further momentum in our virtualized software solutions, which drove sales of our pure software products 17% higher year-to-date compared to the first nine months of 2018,” said Fritz Hobbs, Ribbon’s president and CEO. “Overall market conditions remain challenging, but we are intent on enhancing our offerings, broadening our portfolio and helping our customers migrate their legacy networks to the cloud.”
During the quarter, Ribbon noted that a telecommunications service provider in Canada selected its fixed network transformation solutions, and media gateway products and services within its fixed voice services network at multiple locations. Also, two tier 1 service providers in Japan are utilizing its session security cloud software and services to assist in the migration of their fixed networks to IP.
In addition, a large cable operator and multiple service providers in the United States are deploying Ribbon’s Stir/Shaken solutions and session security products to help address the robocalling challenge for their customers.
In June, Ribbon said it expected to record about $6 million of restructuring expense associated with cutting part of its workforce.
The facilities initiative included consolidating Ribbon’s north Texas site into a single campus housing engineering, customer training and support, and administrative functions, and a reduction or elimination of certain facilities elsewhere. In addition, it planned to substantially consolidate its global software laboratories and server farms into two, lower-cost North American sites.
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November 14 2019 @ 20:57:31 UTC