PLANO, Texas - Ribbon Communications Inc. (NASDAQ:RBBN), a global provider of communication technology solutions, announced today a collaboration with Verizon (NYSE:VZ) on a significant network modernization program. The initiative aims to replace outdated Time-Division Multiplexing (TDM) switching platforms with advanced cloud-based technologies.
Verizon will utilize Ribbon's suite of voice products, including the vC20 Call Controller and G5 Line Access Gateway, to consolidate and replace legacy equipment. This upgrade is expected to enhance service quality and reliability while reducing power consumption and the company's environmental impact.
Eric Lia, Verizon's Senior Vice President of Engineering, highlighted the dual benefits of advancing technology for customers while improving operational costs and sustainability. The modernization program will enable the rapid decommissioning of outdated central office equipment.
Research VP at Omdia, Evan Kirchheimer, noted that the shift to virtual and cloud-based systems is a strategic move to mitigate risks and operational expenses associated with maintaining old infrastructure. This transition is seen as a step toward greater innovation and resource allocation for consumer and business services.
Ribbon's CEO, Bruce McClelland, expressed enthusiasm for the partnership, emphasizing the acceleration of telecom infrastructure modernization and Ribbon's commitment to providing migration services expertise.
This announcement is part of Verizon's ongoing efforts to maintain leadership in network technology and Ribbon's dedication to supporting customers in network modernization for better competitive positioning and business outcomes.
The information regarding this partnership is based on a press release statement. The actual outcomes of this modernization program may vary, and investors are advised to consider the forward-looking nature of these statements.
InvestingPro Insights
Ribbon Communications Inc. (NASDAQ:RBBN) has recently announced a promising collaboration with Verizon, indicating a strategic move towards network modernization. This development may have significant implications for the company's financial performance and market valuation. As investors look to understand the potential impact of this collaboration, certain metrics and InvestingPro Tips provide deeper insights.
InvestingPro Data reveals a market capitalization of $443.88 million, which frames the company's size in the competitive landscape. Despite a challenging period reflected by a negative price-to-earnings (P/E) ratio of -6.65, the company's revenue has seen a slight increase over the last twelve months as of Q4 2023, with a reported growth of 0.8%. This suggests a level of resilience in Ribbon's revenue streams, even as profitability remains a challenge.
One of the notable InvestingPro Tips indicates that while Ribbon has not been profitable over the last twelve months, analysts predict the company will turn a profit this year. This projection aligns with the company's strategic initiatives, such as the Verizon partnership, which may contribute to improved financial performance.
Moreover, the company's stock has experienced a large price uptick over the last six months, with a 31.79% total return, showcasing investor confidence that could be bolstered further by the recent announcement.
For investors seeking a comprehensive analysis, InvestingPro offers additional insights, including a total of 8 InvestingPro Tips for Ribbon Communications. These tips offer a more nuanced view of the company's financial health and future prospects. To explore these tips and gain an edge in your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/RBBN.
It is important for investors to note that while the partnership with Verizon appears to be a positive development for Ribbon Communications, the company does not pay a dividend to shareholders, which may influence investment decisions for those seeking regular income streams. As the company navigates through its modernization efforts, keeping an eye on these financial metrics and expert analyses will be key in assessing Ribbon's potential for growth and profitability.
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