RBBN - Earnings call transcript Q2 2018 | Ribbon Communications Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Ribbon Communications Second Quarter 2018 Earnings Conference Call.

During the presentation all participants will be in a listen-only mode, afterwards we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded on Tuesday, July 31, 2018. I would now like to turn the conference over to Sara Leggat, Head of Investor Relations. ahead. go Please

Sara Leggat

morning financial good to second our Thank conference and call. XXXX results quarter you, welcome

On with press such IR on as note financial forward-looking and items, forward-looking and CEO; to of may materially our market to on cost-containment Please risks IR call and financial leveraging uncertainties, reports customer recognition, and various and of decisions, is efforts. revenue results our call. in during data Communications' statements market materially acceptance the and future conditions, statements factors differ timing contained and the President we'll and this outlook. important the been differ that of risk market the A subject these our website other XX-Q economic statements. website to from contained GENBAND identify the Daryl quarterly Hobbs, or company's of cause which strategy, of affect making acquisitions, these and annual call impact results be have business, will difficulties purchasing complete integrate latest including, from recording opportunities that our could and pending on Raiford, shortly me Sonus, call, each at actual today, a and future ability products XX-K events website results the Form ribboncommunications.com. after without Ribbon CFO. our acquisitions, available of opportunities to IR may transcript that in our to factors Today's services, are discussion forward-looking successfully successfully posted ability those release A pending regarding and Actual supplemental limitation, Fritz and our are this and available be

to update to statements so. disclaim we point, specifically elect at any may forward-looking revise some do or obligation we While

our comparable measures of measures. over me With During let GAAP certain issued GAAP our included in Executive Fritz and our to earnings financial in non-GAAP be Officer, will we are historical non-GAAP President financial our today. on to press it our call, Reconciliations Chief and measures and Hobbs. release turn presentation referring to that, website

Franklin Hobbs

and current to call. you to on an the you, priorities update give said and everyone full Sara, four start this our financial substantial an Sonus intend of strategic provide are the progress our on year remainder we making I year, both around update as XXXX. at the Today, past guidance. morning thoughts good the Daryl GENBAND, performance and XXXX the the view on of as Thank integration of the with our quarter of well we will

We late to agreement announced that As we enterprise this Orchestration. advances you base customer end-to-end strategic leader we large then in Cloud complete and Cloud able with this product SBC acquisition alliance and analytics to service SBC, UC, portfolio, acquire our we our June in we security service. UC, core believe market Network SD-WAN edge know, signed be offer this a believe Edge Edgewater to Ribbon's focus analytics. and significantly assurance will solutions unrivaled in acquisition will year addressable Edge a and which market a capabilities on leadership Networks, and an With position of definitive a feature extend

quarter. million improvement delivered efficiencies. we total as of adjusted improve performance. very and We We sequential this Ribbon's had in it profitability EBITDA our financial our remain I'm vigilant drive and to our both cost results, year-over-year to strong of pleased XXXX $XXX non-GAAP million As revenue operational our with structure an relates quarter down past second $XX and financial

synergies. over now merger $XX integration report this of year annualized half to excellent with after We progress completing rationalized I'm cost pleased first our have activities we've made and million the in

half opportunity. I full the but we the revenue. pipeline market our year non-GAAP therefore of remain four with one and we outlook of in be more in near-term expect the to give for believe the a our our and confident conditions our EBITDA million provider to second solid in level by on approximately revenue with end quick full service opportunity the year for on synergies this to pillars we year, $XXX summer. in space, of capturing continues the capturing beginning speak moment. portion large integration focused on this previously focus year strategic to on respect To immediate in are update cautious our of of strategy while continue the million process, will you efficiencies our be completed the year of year a four of guidance macro outlined XXXX our efforts is Turning retain improve. Earlier view market a operating fiscal adjusted swiftly XXXX to our continue in cost to provided $XX Daryl We our trends our integration of on and

challenging During the common migrate and of launched platform transactions functions accounting reporting I'm encouraged that systems. bulk our able efforts. system we the were of integrated the we our to to manner ERP with our second business tackled this integration all quarter a have and and these we

to initiatives, we're Turning I'm solid now strategic say making to our four progress. pleased

forward our invest of fronts. we're products in number core moving a of to strategy along In our terms

stages the Ribbon investment Japan migrate IP opportunity the by years. to from early market With TDM off. Japan IP. mandate still we several early our the to XXXX is example, market a is Japan believe beginning over to next meaningful a For of for pay in shifting the in represents to

its with migration won legacy which with IP deal replacing its equipment accelerating we Ribbon's SBC quarter XXXXs. a is and Softbank sizable This

provider selected SBC superior support. as Ribbon's to on ability large provide network for and Asia-Pacific our another service based as well Additionally, interconnect XXXX flexibility scale local

number mobile a in through win cloud-based its half with large a Verizon of to a large healthcare customer, a X.X lead client meaningful for we expect SBC this this potential With reduce provider. signed extend financial, municipalities. this to customer for We from Ribbon remained times our the software Verizon a in as companies large and with revenue year. with Asia-Pacific from second in partnership of Verizon's second as demand SBC our for from retail, technology, new activation service We ranging virtualization recognize offering, a a the new can to solid Web customers service. enterprise to continue pipeline service And believe months days.

of of application visible technology. with server We this to the will than Verizon federal the Department JITC within one Recently invest we voice-over-IP XX,XXX Department completed users project vertical history, vertical. migrating believe in certified the largest our continue highly ahead more Defense and to federal We the opportunities Ribbon's competition. deployments Defense's to in lead partner of the of more

leveraging share to in full and wholesale second going additional provider services. X service provider product during continue Tier and also for this professional We service we as the our U.S. will largest portfolio continue the interconnect we provider work major likely believe a Ribbon's modernization displacing continues. major cable projects our transformational service transformation network work market competitor at four a to Finally, network forward with core gain quarter. project fixed lead a strategic and MSO a

leverage to is global install our initiative second footprint Our in base.

across both with and line our unified pipe broadening Sonus of products opportunity GENBAND the are global sales our We force.

base. this in as over able this global numerous and We we are time coming in our to are which meaningful GENBAND Sonus be another is reach an SBC our developing provider example. year. will opportunities customer offering there heritage sales product represents customers large We believe believe primarily service believe customer to products trialed opportunity grow product Edgewater's to Edgewater the Edgewater's is we force expand portfolio U.S. installed based. global take being

is initiative applications. expand third and to related adjacent Our markets in

initiative Ribbon Protect product and We are offerings. Kandy focusing our this through

revenue In the of last available of quarter from with we first was generally expect is where it our to Ribbon Protect terms this Softbank during project XXXX. and underway Friday third customer declared deployment just recognize

is growing we pipeline numerous trials Our had underway. Ribbon Protect and

continue Kandy. City and project communications of than upgrade the Kandy's with to and of its departments more Angeles LA to cloud-based with We UCaaS encompasses an plus make to agreement Los We employees. city The unified solutions. XX,XXX signed systems voicemail capabilities XX progress

segment the cloud. to point Kandy utilize the reference a cities. of other strategic project lastly, our in and be relationships, will we U.S. the alliances to project strong a for end-users believe LA major the migrated During of And large pursue fourth quarter M&A. is We City on this initiative

our second SBC Teams Microsoft our in the routing During general leveraging Microsoft Routing of NuWave we feature. week Microsoft Direct quarter, announced availability Last the the the for is who first direct using deployment customer, last announced Teams.

for positive as We SBC later next impact year. up our year into expect this ramps migration this portfolio and a

will and incorporating SME growing our by portfolio and Of to course product Edge. also service our Edgewater scale ours the the complementary to assurance Edgewater Protect faster UCaaS both Edgewater in Kandy exposure pending and is fast-growing market. leverages Security, acquisition at Edgewater's our us the Ribbon highly gives market. SD-WAN a strengthen analytics capabilities offerings

fully a at as we quarter our continue four actively we summary, work continued We M&A very well busy targeted executed as well. our opportunities our strategic ongoing was synergies, against of other time it to priorities. cost capture number In another integration the evaluate to same

in Daryl second now well I call half in outlook XXXX growth share opportunities our capture market remain more as of Daryl? our as our financial adjacent the operability incrementally expanding discuss core to will the on results and For products we XXXX to over focused within detail. completely markets. turn

Daryl Raiford

of and second website our provide the details good our have remainder XXXX on results Fritz review the our I'm our outlook and to non-GAAP morning IR quarter historical financial commentary Thanks performance. The on financial of for everyone. slides then for year. the going the regarding

in encourage what is from Our we these with I reporting consistent you our prior periods. to materials website. get presented have framework

earnings I non-GAAP of items financial when detailed financial accounting exclude these reminder, effects purchase metric, conjunction a in in As to materials. the with our metrics and refer the other

on press you metrics end of both are of available our release presentation, our Our financial and non-GAAP earnings both relations are reconciled today's at website. for investor the

to of anticipated, EBITDA. our from as year This as than and second Turning the restructuring Ribbon activities. both of produced well acceleration adjusted as an orders earlier combination closing driven the relates had favorability was financial strong in revenue to results originally we quarter, it a

XXXX. $XXX results non-GAAP of increase or revenue Our million million second QX which $XX with compared quarter as was an XXXX follows. as X% non-GAAP financial were was Total

quarter sequential expected margin margin. in within $X expected about complete The disproportionately XXXX. The of the book-ship we improvement third the have than in Non-GAAP volume revenue our gross second order incremental quarter gross in in from drove million quarter realized we that XX%. quarter second as of quarter sales was benefited to in stronger previously revenue

of quarter large was share share XX% Non-GAAP per Adjusted Additionally, with was as mix margin as high $X.XX with XXXX. deals earnings in with million the of we our first content. compared in loss accounts section $X coupled by compared of product first XXXX. per within had driven favorable a EBITDA million $XX software quarter

accelerated of from benefited to mix drove we as revenue the higher activities restructuring coupled earnings our complete. the with cost of Our get synergies majority margin

Turning our restructuring of This from $XX be of well XXXX result in operations second over use related the million million in in our as We non-GAAP an are property mix. customer expense quarter XXXX. than million end DSO acquisition, was to $XX yearend in infringement to substantially lawsuit $XX line will again the compared of which investments as half credit first second $XX In integration used will anticipate XXXX were $XX of cash accounts payable revolving $XX recorded unchanged XXXX sheet, payment of the of as year-end improve deal balance expense the in at was under of merger restructuring, from in first remained XXXX modestly do days year of the at XX half DSOs or we incurred QX reduced compared accrued Borrowings period. in that the The in the intellectual and cash more We XX half with QX. days use million which calculated as forecasting are same project first which cash that primarily quarter. and we primarily expenses activities terms $XX as less the our the fiscal a was and revenue. We've was on XXXX. million and and and million with fiscal of our cash of of million. $XX million favorable resulted plaintiffs. is current using the based integration

well at as Our remained undrawn unchanged availability million. $XX

Now outlook. I move to to like would our XXXX

Networks not XXXX transaction August communicated the is on impact during the to the Edgewater the of our Edgewater the of adjusted of guidance which As point XXXX some half be do EBITDA XXXX. calls, of financial closing views past include proposed will providing earnings precise to the Therefore on month our results. previously would I anticipated also on at transaction, will second timing note of currently incremental annual depend that like on be addition yet

For while we service and our quarter exceeded improved first the is the as cautious But internal the Fritz to quarter market full provider year have pipeline from both stated, timing, overall we in XXXX, solid. space. continue second in the our expectations remain conditions half second of

We Sonus SBCs market gaining each are of number accounts we are on trialing initiatives. a GENBAND former in strategic of traction our and

at impact $XXX We any Edgewater half confident to by improvement on remain least full timing, compared XXXX in with from revenue which be be second fully results. that third non-GAAP driven revenue first expect financial quarter excludes we lower million, our year slightly will but non-GAAP balance quarter

full adjusted Edgewater EBITDA, for excluding million. unchanged XXXX Our remains outlook $XX year at

to me the Ribbon's have your that, previously will our in believe remarks. turn previous for questions. support Edgewater over exit formal we are with let an at That on annualized Consistent With million that accretive call want fully August. $XXX do adjusted with $XX run be We our to for combined Ribbon. As we Operator, for already you track when operationalized million. statements, for cost the least rate concludes question. in transaction believe over ready consummation on are Fritz of savings. XXXX EBITDA stated, all we results to of continued our at operator of we the first I financial thank

Operator

our much. is Blair. William from Thank we'll ahead. you, question Netis on Dmitry go first the [Operator very to Instructions] the get And line right of line with Please

Dmitry Netis

do obviously I half guys, gauge QX. the mentioned obviously the to very some the you you that thank to and second pull third there just were year, of forward expect much quarter. be now Hi, you here confidence nice wanted than quarter your lower on

the double the magnitude XQ million looking give guidance is for we against is So digits, shaping above you that of And is dollars QX, it least digits? us or couple you of you dollars few can just is to it at hit sort of know a at single from what XX% maybe from how are million there you see and it tea you're XX% out are some QX the kind to up may through? of be gives sequential you leaves of to just are working going deals ramp confident there how and QX you some wanted get confidence to of major that that

Franklin Hobbs

in second remain Thanks Good of revenue we track least our Doing within versus timing in revenue terms quarter an is, that's balance in sales what at we the on million. very in in What we morning, least our than service the of of the we that we million but is about in year, $XXX gives outlook we guide progressing the believe team considered of the as $XXX Dmitry. pipeline, with fully all strategic market the said that. It's nice and the to we on things half our speak provider quarter joining the the full-year four how $XXX to saying confidence for and on be and first of year improved with remarked initiatives considered us and our revenue the execution based and confident confident annual all do hear remain for very our financial quarters, remainder what math, but we're things the based slightly half we read at third is on second of provide million. in expect the just did, just to you. call. the lower terms do the don’t we Dmitry that

Dmitry Netis

strength around service other. is there, you Asia one large appreciate, any Softbank had providers a of mentioned the there I but specificity maybe lot in big, then and

You projects those now? big color provider, along mobile expectations around also with right exceeding transformational helpful? the mentioned are are your X.X any Web They be those expectations, your would moving

Daryl Raiford

Our result strength Asia. improved timing in a was of

Franklin Hobbs

across lot a say in team of the about is with three good work feel that and we'd think also a we're over two of some We last position and is result think really progress our of couple last of making years. this combination I the lot this sales the product and Asia the of that's just accounts. But team a years. a work going on by number I or over the of Dmitry

Dmitry Netis

us what they right of what All some do color little maybe Web and bit then can you they mobile give and using? are provider the kind products of on X.X

Franklin Hobbs

say That to We're to in Web model it the use a operator Japan – States. market, name in not providing but similar. X.X looks looks very cloud-based that the mobile would similar United their very is business Amazon provider what be is able mobile the

you Services if particular what occurrence. for we've So growing market we that experienced and believe similar set Web Amazon about think is the a

Dmitry Netis

And what is the product?

Franklin Hobbs

SBC.

Dmitry Netis

last Oh My through of would off say you not it and repeat result move of to it's quite but on came this the rest expectation the I question the case, strong if okay. in is venture just gross I'll Gross the is nicely. SBC, move is margin call. for analysts it quarter margins for year? as that the what’s SBC the

Franklin Hobbs

a have and revenue year some what trends believe guide to gross We've on we specifically we be guided for full given commentary a margin. adjusted Well, EBITDA.

content margin the not second changed. for year mentioned EBITDA view and products on Margin in you for of and mix comprehends that based adjusted our improved was software within the view in our quarter terms So the that has some SBCs.

originally we from the beginning it million. to of EBITDA We that comprehends be the of have is year adjusted the margin viewed expect the $XX where guide

Dmitry Netis

half continue did the to in you the step content from software second up Do half? what you to the first expect in

Franklin Hobbs

trend of but second kind the don't to quarter continue say know the I speak don't within really I of we quarters. half don't improving. will the quarters, would want multi address on I

Dmitry Netis

guys. Okay, it I'll thank Thank you. move on, offline. very much take I’ll you

Franklin Hobbs

Thanks.

Operator

next lines, to of from the ahead. the line Markets. Northland on you. Capital question Thank with Latimore We'll get Please go our Mike right

Michael Latimore

Great thanks quarter Great, there. lot.

revenue, organic I rate the growth you just to year-over-year, On us forma the give that - just can on sure a pro accurate? get overall I want make

Daryl Raiford

the rate sorry, as forma our on pro Let non-GAAP I'm growth what me, was revenue. question,

Michael Latimore

yes. revenue, Non-GAAP

Daryl Raiford

quite growth, haven't Second though, speak terms forma the a we second in spoken a forma. really bit to we reported on it of of pro to to, basis don't over haven't quarter, quarter is really spoken pro that but we clearly

Michael Latimore

in of second - in there's SBCs selling? of mentioned came the deals lot then some GENBAND And are year color you the guess from from in expecting then sales half and quarter guess base, across I terms the the a you I Okay. the a little revenue of cross of on, actually how much in testing sizable provide you can

Franklin Hobbs

is taken in deliberate streamline line. product product of our we of is full, a of former year, this the a streamlining very said at to we full thoughtful some line the product and to year offerings that GENBAND favor Sonus and Well, trimming begin a as beginning is the process, this SBC the in and actions including

are which process. towards more trial, kind a to from as the it of it then quite year through with bit a recognize get the to by service trialing former get able more Sonus it year It to We're provide then equipment We would We a we be full to labs, is customers the we're We number get certified itself. it of procurement. timing that encouraged XXXX GENBAND to to on look then four believe in products. that. revenue to into large provider the move process being

Michael Latimore

of is was this UCaaS, main still Got Angeles cloud there, who then process just an or sort and one, on-premise deployed provider? of or the another competition it deal last deployed that it. that then being in of fully it was the system users And was City XX,XXX is Los

Franklin Hobbs

It XX,XXX they're of over and fully was replacement deployed, the time. an not on-premise enterprise deploying are system users

Michael Latimore

provider the or there was competition in versus it pretty Was that there for guys? hat you cloud much another on-premise

Franklin Hobbs

another of aware cloud competition. that not I'm provider in don't, was I

our a strengths cloud disrupt One elements buying any solution. was as one installed address decision. other transition that cloud that's from does provider the was seamless not our and solution to that enabling on-prim as provide features to that did of of overall that base of network the important the potentially the ability an competitive a surrounded our We the believe we

Michael Latimore

Okay, you. thank

Operator

to line the Mark take go with our the D.A. Thank Kelleher you next very much. right Please line on ahead. from question We're of Davidson. going

Mark Kelleher

going of Great, think there, thanks from it quarter. broadly that be and for question the last when are on meaningful part Maybe Kandy, bit ahead more little a about keep is is revenue? you questions. on a Congratulations can your the what track, strong talk for a opportunities taking we that expectations could of schedule, do that total

Franklin Hobbs

hear morning. to Mark, Good it's nice you. from

itself are, believe our we XXXX but this do selling on are to year We terms we and believe In would the solution, providers demonstrating developing, forward material with don't year. see contributor of as growing. and material going of we is service part trialing be discussions to it's the really be that We a calling look we're we're not track. our market Kandy this as revenue that number a in to revenue. We a it of do, through and it into enterprise. We to

Mark Kelleher

bit additional your after structure, do acquisitions? financial particularly sort power think current little with Edgewater are acquisitions about you talk to work through of a capital these make or you reload and have thoughts then on additional to maybe enough Okay, acquisitions guess your regard you

Franklin Hobbs

global do we've of actually years this of was the that we think pro capacity it other distribution. can that facing I sales this, is doing with mean companies far come going think we next take going a to number space mid we of we a are basis. as that here have And a a of position that meaningful to a can number debt with for there be and ours our comfortable we are think yearend the we and acquisition real the agreement we that of given opportunities over can their of where products to I we market We team them financial of on, have the who but a got other there's think in broaden the and force we how force. of them think arena more be And whether they sell there we reasons don't we really opportunities dilemma our flexibility are and in on forma maybe find we Daryl's our there we have think the couple think products opportunities. as someone think ability We lot think Edgewater a companies some us described real in think opportunities. as felt a number meaningful is further a the in interesting cost sales have strength we had our create clue, and take we the one to a can and situation capability have of

more said, in said, As few sales one quiver. guys he just like my have top we'd of our to arrows a

I on So think basis think real on they're that. products. more to force sales If for more add we we upside a can global there's our some products looking

looking regard. So opportunity that in we're constantly for

Mark Kelleher

the, what's the maybe market are growth? then for your service what the thoughts of those in new growth enterprise versus acquisition markets and opportunity the the just market SBC provider your expectation two on with Okay SBC

Daryl Raiford

and the second very market set set which is market that's we in set the actually market service provider enterprise enterprise making we well. is XX% is several do next the enterprise a and especially space, and SBC larger closed Enterprise the XX% that the position The think grow. revenue when to XX% transaction from set to share the about or outgrowing us positioning our subsegment provider capable outpacing be just analyst service and we provider on think from Well, market over growth product mix acquisition the that a positions reports has that. about will investments enterprise. the in well to and the up I along think market it that in company medium leader, years service as was outgrow us space We potentially analysts, as are as quarter view Edgewater based the many so with Edgewater within the space right of space or We XX, now market to nearly a enterprise us small service we're with company the and of take the think provider very enterprise it positioning growth to is outpace modestly our to with space. there the able

Franklin Hobbs

Another you take Edgewater take have business. enterprises our you outlined way meaningful is, putting and of it just we a Daryl if current enterprise enterprise,

and be Now the make for question of we where and much might looking completely real integrate fashion we size is how the in to we one in resolve one operational a challenge the obviously is several that more at we're than enterprise it months. in aware is past. that the But giving have that that and will we look as market and us but us, over heft at that aggressive next

Mark Kelleher

Thanks. Okay, great. That's all I've got.

Operator

& [Operator Silverstein Company. next much. from Please ahead. right question Cowen Instructions] very you get Thank on with Paul the line go We'll our

Paul Silverstein

appreciated the taking I questions. you Thanks.

me points the First additional that an adjustments $X of you are contributed remind to Daryl, and what can related XXX million acquisition gross business margin?

Daryl Raiford

Amortization intangibles. of acquired

Paul Silverstein

quarter? Okay, what was in the headcount the

Daryl Raiford

XX%. The down from year the headcount of last quarter was at X,XXX end of the time this which

Paul Silverstein

the going that's Daryl services trying $X.X in forma saw and you question the a a products added I'm benefit adjustments, between to pro back million back confused, and particular revenue of to revenue, to thought I item previous I'm the I Okay there was little understand.

Daryl Raiford

was of item items. is The million an The activities of and the acquisition larger approximate revenue the be adjustments that. essentially deferred represent approximate the between purchase earned performed $XX can were add revenue revenue an in off GAAP written no non-GAAP two and so is revenue longer back so GENBAND adjustment from of longer for make because no GAAP, the under we accounting but - and that that

recognition adjustment in of the removed deferred $XX.X about adoption smaller deferred adjustment. of XXX million that revenue the revenue as non-GAAP that’s loss second of adoption. from The a ASC the much is part We and of

Paul Silverstein

you adding not the item, accepted do so back adding you're accounting, revenue On back under you're forma? recognize the deferred the pro generally in first that otherwise but

Daryl Raiford

be forma, non-GAAP That's I was back and the pro approximate year. throughout the in - the it year, correct, add $XX it quarter, It the of the be but understand first in in will of fourth in yes will mean, remainder in be it not what quarter, will it non-GAAP was you the throughout million.

Paul Silverstein

that revisit offline. I'll

service to the Can of for you've provider for XX% provider service growth on. you respectively? enterprise XX%, you your the growth mix what was, know us what was tell rate us and but given tell move me Let can rate I

Daryl Raiford

don’t through let’s I’m have, that. I see, looking

Paul Silverstein

And will for ask… it, I you're also while looking

Daryl Raiford

the above Deck and don’t so it but change don’t in just… Investor have we break have QX the of for XX% out. mix example sorry don’t out, XX% XX then, did and you have manner in out I'm is and break way, Paul. we I that service over I QX was don’t the provider mix The that while broken QX, the that, in well approximate mix out, the in as in mix that higher was broken XX, I don’t revenue which

Paul Silverstein

it was it if but correctly was heard QX QX and I in XX% XX% Fine, it QX. in

Daryl Raiford

correct. That’s

Paul Silverstein

missed All do these you me on. see I that? if region, right, a move I apologize, but didn’t you, by Can let have breakdown I numbers

Daryl Raiford

the the the XX-Q States. specific believe of Yes, I will tomorrow that is United EMEA, the international that Deck, will breakdown, regional be broken down. that’s on Investor have page domestic filed and X

Paul Silverstein

on same that correct insuring either give opportunities a give to for metrics particular time and us, appreciate Protect metrics a care can and over respect I right, benchmarks us question but some again appreciate to size customer, opportunity? you trying basis your revenue the Can I - sensitivity All on about you potential on per Softbank give can contribution to these within I me, question we do the by you presented whatever of it come you deployment Fritz. where for offer think that or any that but from opportunities? deferred any Kandy but the same the LA think gauge in instance question terms by was XX,XXX Ribbon user for users you to board, are or The to sensitivity, about you going how Kandy? us plus projects, got For

Franklin Hobbs

the - to use, Paul, discussed So think the At I that's about opportunities. we we're look as opportunities. think excited this know, moment really word I you

sort sell imagine we're if impact Daryl today revenues. about not be into earlier, the modest. to it's will point returned, said a it XXXX, company. We We going it of we in can a is your that XXXX to feeling a think in translate then accounts long even longer hope revenue this of for is the determinative of run can in been we're value be is doing it we've going as to the at in the XXXX the meaningfully us at As meaningful see be here more lot you with of, tipping work we lot can and of but translate that that but

we're so cautiously are numbers And optimistic, the relatively modest. but themselves

more products some know. you it well are out us start When they sale our to than selling mode. into repeatable SaaS numbers as a mode is However, product starts it transforming you

affect it meaningfully future. but anything that's we're to will in our of going So the be say view your near wouldn't company encouraged, I

Paul Silverstein

I appreciate that Fritz.

me growth term, Japan? But then seeing quarter a story outside for for we’ll piece Japan question. that I regional longer of last now to appreciate to primarily Japan the and let me business, mandate ask you was is big And it trust their two ask given in growth but Let term growth I'm at the or Returning also questions. when ways, a the XXXX. see the going the over the look all two right you you're I tomorrow, it ask well longer

Daryl Raiford

limited Japan. was it to not No,

Paul Silverstein

that assume of growth and your Japan the just, true outlook longer same not be but looking for growth is you're term key view would be it, Japan? piece I beyond to your of goes Okay going a

Daryl Raiford

Exactly.

Franklin Hobbs

to our I spent on comments. opportunities on has a Paul, real share, on your establish we've time lot where question just think there we is interesting touched can some trying growth. money, we Yes, space business, federal we time, take mean the as investing spending We of and on should core in resources, be our

really that add So The we we four SD-WAN. areas, three there's there current opportunities us enterprise to for Japan, discussed think we are federal, earlier think our to business. or space

Paul Silverstein

it. Got

I and appreciate longer Let Fritz me the last it's you about question one ask all term.

is appropriately guidance So at how that? in being second it or how the I'll of- that's you much conservative of half leave much said, well your

Franklin Hobbs

making about hair. to Well, we've to with everything old a told to I prove white little we of sitting. movies. Paul it's you many you you. saw guy trying We're think me, best We shot on we're I'm and I've seen where progress too feel you to give us up we're the it have

Paul Silverstein

guys. right, I on. I'll appreciate. it All Thanks pass

Daryl Raiford

nice Thank to with It’s you. you, Paul. speak

Operator

very you line from we’ll Company. Please the go much. ahead. our with on to and right go question Cowen of next And Thank Jeff lines Bernstein the

Jeff Bernstein

on get us Hey update a time that's some [indiscernible], an good translating update now into guys, just a with on guys little U.S. rip whether wireless had replace opportunities? win the you how X and wanted that's carrier to just ago Tier give and going a other and in any

Daryl Raiford

we that we right solution. market and You're did to continue

opportunity any there pipeline, that exist We market that sell to within opportunities or and haven't specific the continue solution. we'll addressed but actively and are

Jeff Bernstein

All question. right, taking for my thanks

Operator

Thank you at questions back this very have I'll you. to Hobbs, and we turn call no further the time. much Mr.

Franklin Hobbs

appreciate pushing. really get all time. for your you to keep you it. Thank board much. drawing We'll back Thank the We very and

Daryl Raiford

everyone. you Thank

Operator

your to today. you for Thank disconnect gentlemen and ladies this day you everyone. Have ask great a concludes you does much. participation very conference for And thank We call and the your for lines.

Ribbon Communications (RBBN) 31 Jul 182018 Q2 Earnings call transcript