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Tag: RBBN

  • Ribbon Communications (RBBN) Fails To Sustain Covid Growth

    Ribbon Communications Inc. (RBBN) is a US-based communications company that specializes in cloud technology, as well as in a range of related software and hardware products. It is currently experiencing a slowdown from its impressive Covid-era boom

    The Covid Boom for RBBN

    Ribbon Communications (RBBN) experienced explosive growth with the outbreak of the Covid-19 pandemic. Lockdowns and the remote-work concept resulted in surging demand for cloud storage services, which resulted in a 50% topline growth figure. During this time, Ribbon also expanded to a number of markets including the US, Europe, and Australia. The result was a jump in its overall return on equity, much to the delight of its shareholders. RBBN, during 2021, penned a number of multi-million dollar deals with high-profile ensuring long-term profitability. The company has strongly capitalized on its competitive strengths in both Edge and Cloud service offerings.

    Ribbon’s Business Slowdown

    In recent years, it had become evident that Ribbon is unable to sustain its Covid-level growth at all, which brought investor optimism crashing down. Where topline growth in 2020 stood at 50%, it had come crashing down to only 0.14% in 2021, and 0.6% in 2022. Given such a turnaround in performance, the market was quick to correct RBBN stock price, which had shed almost 60% of its price this year, and is down to $2.70. In comparison, the stock was trading at over $11 in early 2021. Given the present bearish market conditions, it is no wonder investors are hesitant to hold this declining value burner any longer.

    Conclusion

    RBBN is a stock that has lived through its days of glory and is evidently a dying beast now. It is apparent that the business is unable to sustain its growth levels during the Covid-19 boom, and has hence lost its appeal as a growing tech star, with its sights set high.

  • Ribbon Communications Inc. (RBBN) is slightly down in the after-hour; let’s see why?

    Ribbon Communications Inc. (RBBN) stock is declining in the after-hours. The stock was doing well in the regular trading session, but it slips in the after-hours. RBBN stock is valued at $4.35 in the after-hour market, losing more than 18% from the previously closed value. At the end of the last trading, the RBBN stock price closed at $5.31. The stock traded volume in the previous regular session was around 452.45K shares.

    Reasons for RBBN stock decline

    On January 20, 2022, Ribbon Communications Inc. (RBBN) announced its preliminary fourth-quarter 2021 financial results in a press release. On February 16, 2022, Ribbon Communications will report their fiscal 2021 and fourth-quarter results.

    • Ribbon Communications expects revenue of $231 million in the fourth quarter of 2021.
    • The company expects gross margin and non-GAAP gross margin of 50% and 54%, respectively.
    • Ribbon Communications Inc. (RBBN) expects its operating loss in the fourth quarter to be around $4 million.
    • The company expects its EBITDA will be approximately $26 million in the Q4 of fiscal 2021.
    • Ribbon Communications Inc. (RBBN) expects an increase in cash and cash equivalents. The company expects its cash and cash equivalents to be around $106 million.

    In Q4, Ribbon Communications Inc. (RBBN) witnessed an increase in demand, due to which its sales grew by more than 10%. But overall, its achieved sales are lower than its previous guidance. The reason is the supply chain disruption in the last weeks of the fourth quarter. Due to this particular reason, the company lost around $10 million in sales.

    Effect on the stock decline

    As soon as its preliminary results were announced, its stock declined. The results have shown a decline in the operating income due to the supply chain disruption. Investors are shying from investing in its stock until its complete results for fiscal 2021.

    Conclusion

    Its preliminary results for the fourth quarter, the whole year’s result, will be announced in detail on February 16, 2022. The Ribbon Communications Inc. (RBBN) stock is dependent on the results of its fiscal 2021 yet to be announced. Till then, the fluctuation might not be significant, but the investors should take results through forecasting the results from the performance of the previous quarters.