Ribbon Communications reports Q2 non-GAAP EPS 5c, consensus 5c

Reports Q2 revenue $221M, consensus $213.39M. “I am very pleased with our strong financial performance in the second quarter with both revenue and earnings exceeding our growth projections, resulting in a successful first half of the year. Demand in the North American market was strong across both Service Provider and Enterprise market verticals as we continue to win the largest industry voice transformation opportunities. And we had good momentum in our IP Optical business in India and North America this quarter supporting fiber and mobile network expansion,” stated CEO Bruce McClelland. “Looking ahead, the demand picture remains robust with good visibility, and we continue to anticipate a seasonally stronger second half of the year.” CFO John Townsend added, “It was great to see our business momentum reflected in our Q2 results. Revenue increased 15% year over year to $221M, exceeding guidance, and Adjusted EBITDA increased 47% year over year to $32M, at the top end of our guidance. In the quarter, we announced a new stock repurchase program and expect to use a portion of our free cash flow over the next several years to repurchase up to $50M of our common stock. Our cash position remained solid, closing the quarter at $62M including $2.3M of stock repurchases. In addition, the new U.S. spending bill recently approved by Congress includes corporate tax changes that are expected to result in lower cash tax payments in the second half, which should further improve our cash flow this year.”