Ribbon Communications Inc. (NASDAQ:RBBN) Q3 2023 Earnings Conference Call October 25, 2023 4:30 PM ET
Company Participants
Joni Roberts - Chief Marketing Officer
Bruce McClelland - Chief Executive Officer
Mick Lopez - Chief Financial Officer
Conference Call Participants
Erik Suppiger - JMP Securities
Greg Mesniaeff - WestPark Capital
Dave Kang - B. Riley Securities
Tim Savageaux - Northland Capital Markets
Operator
Ladies and gentlemen, greetings and welcome to the Ribbon Communications Third Quarter 2023 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joni Roberts, Chief Marketing Officer. Please go ahead.
Joni Roberts
Good afternoon and welcome to Ribbon’s third quarter 2023 financial results conference call. I am Joni Roberts, Chief Marketing Officer at Ribbon Communications. Also on the call today are Bruce McClelland, Ribbon’s Chief Executive Officer; and Mick Lopez, Ribbon’s Chief Financial Officer.
Today’s call is being webcast live and will be archived on the Investor Relations section of our website at rbbn.com where both our press release and supplemental slides are currently available. Certain matters we’ll be discussing today, including the business outlook and financial projections for fourth quarter of 2023 and beyond are forward-looking statements. Such statements are subject to the risks and uncertainties that could cause actual results to differ materially from those contained in these forward-looking statements. These risks and uncertainties are discussed in our documents filed with the SEC, including our most recent Form 10-K and Form 10-Q. I refer you to our Safe Harbor statement included on Slide 2 of the supplemental slides for this conference call.
In addition, we’ll present non-GAAP financial information on this call. Reconciliations to the applicable GAAP measure are included in the earnings press release we issued earlier today as well as supplemental slides we prepared for this conference call, which again are both available on our Investor Relations section of our website.
And now, I’d like to turn the call over to Bruce. Bruce?
Bruce McClelland
Great. Thanks, Joni and thanks to everyone for joining us today. I am pleased to report solid earnings in the third quarter despite revenue coming in short of expectations. Positive customer and regional mix, lower product cost and strong software sales all contributed to improved gross margins in both of our segments. And as a result of the restructuring plan we implemented earlier this year, our operating expenses continued to improve and were $87 million on an adjusted basis, the lowest point in over 3 years. Combined, this resulted in adjusted EBITDA earnings of $28 million, up 21% year-over-year and near the midpoint of our guidance. This included an EBITDA improvement of $6 million in our IP Optical Networks segment.