The company reported revenue of $227.3 million for the quarter ending Dec. 31, falling short of the $241.3 million projected by FactSet analysts. Despite the top-line miss, Ribbon posted a net profit of $89.1 million, or 50 cents per share, a significant jump from the $6.4 million reported in the prior-year period. On an adjusted basis, earnings reached 59 cents per share, comfortably beating the 11-cent consensus estimate.

Backlog Hurdles and Restructuring

Chief Executive Bruce McClelland told analysts that roughly half of the revenue shortfall stemmed from projects already in the company’s backlog. According to McClelland, shifting completion milestones and shipment delays pushed revenue recognition into future quarters. He specifically cited a slowdown in deployments from a primary U.S. customer currently undergoing restructuring.

The stock's 30% decline represents its largest percentage decrease since March 2015. While McClelland emphasized that the delayed projects do not represent lost business, budget availability concerns continue to weigh on the outlook. For the first quarter, Ribbon issued revenue guidance between $160 million and $170 million, slightly trailing the $170.2 million forecasted by Wall Street.