PLANO, Texas - Ribbon Communications Inc. (NASDAQ:RBBN), a global provider of real-time communications technology, announced the appointment of John Townsend as its new Executive Vice President and Chief Financial Officer, set to take his post from November 1, 2024. Townsend will be succeeding Miguel "Mick" Lopez, who is retiring after a transition period.
John Townsend brings over 30 years of experience in finance, having worked with large financial organizations and service providers across five continents and 30 countries. His career highlights include a nine-year tenure at Verizon Communications (NYSE:VZ), where he served as CFO for several divisions, including Verizon Business, Verizon Consumer, and Verizon Wireless. During his time at Verizon, Townsend supported annual revenue streams exceeding $90 billion and led his teams through periods of significant change and growth.
Prior to his role at Verizon, Townsend spent nearly two decades at Vodafone (NASDAQ:VOD) in various regional CFO roles. He played a key role in leading commercial and business transformation programs internationally. He also served as CFO for the Verizon Wireless joint venture, overseeing the company's SEC reporting and investor communications.
Before joining Ribbon Communications, Townsend was CFO of Digicel, where he focused on profitability improvements and operational efficiencies.
Bruce McClelland, CEO of Ribbon Communications, expressed confidence in Townsend's extensive industry experience and his track record of driving profitable growth and value creation. McClelland also took the opportunity to thank Mick Lopez for his contributions over the past four years.
Townsend himself commented on the strategic vision of Ribbon Communications and its positioning to capitalize on industry investments in network transformation to support the growing demand for data traffic from mobile, broadband, and AI technologies. He expressed his eagerness to join the company and work with the team to drive value for all stakeholders.
Ribbon Communications provides communications software, IP, and optical networking solutions globally, focusing on modernizing networks for service providers, enterprises, and critical infrastructure sectors. The company is also committed to Environmental, Social, and Governance (ESG) matters, publishing an annual Sustainability Report for stakeholders.
This news is based on a press release statement from Ribbon Communications.
In other recent news, Ribbon Communications has been the subject of several developments. Rosenblatt maintained a Buy rating on Ribbon Communications, with a price target of $5.00. The firm's optimism is based on expectations of significant growth in both the latter half of 2024 and the first half of 2024, with revenue and earnings per share projected to grow by 8% and 13% year-over-year, respectively. The company is anticipated to achieve $20 million in revenue growth for the third quarter of 2024, mainly due to the closure of a major Federal Cloud & Edge deal.
Ribbon Communications' CFO, Miguel "Mick" Lopez, also announced his retirement, initiating a search for his successor. The company's Q2 2024 revenues were $193 million, reflecting a decrease from the previous year, but an improved non-GAAP net income of $9 million. The company anticipates a 25% revenue increase in the second half of 2024 compared to the first half, setting full-year revenue guidance between $830 million and $850 million.
Ribbon's recent earnings call reported a mixed financial performance for Q2 2024 with revenues falling short of guidance but an improvement in non-GAAP net income. Despite lower sales in Eastern Europe and a delayed US Federal deal, the company remains optimistic about significant improvements in 2024, supported by strategic partnerships and market opportunities.
InvestingPro Insights
As Ribbon Communications Inc. (NASDAQ:RBBN) welcomes John Townsend as its new CFO, investors might be keen to understand the company's current financial position. According to InvestingPro data, Ribbon Communications has a market capitalization of $554.99 million, reflecting its size in the communications technology sector.
Despite the company's strategic moves, including this high-profile appointment, InvestingPro Tips reveal that Ribbon Communications is not currently profitable over the last twelve months. This aligns with the reported P/E ratio of -10.21, indicating negative earnings. However, it's worth noting that analysts predict the company will turn profitable this year, which could signal a potential turnaround that Townsend might help facilitate.
The company's revenue for the last twelve months stands at $801.85 million, with a gross profit margin of 55.07%. This relatively healthy gross margin suggests that Ribbon Communications has some flexibility in its pricing strategy and cost management, which could be areas of focus for the incoming CFO.
An InvestingPro Tip highlights that three analysts have revised their earnings downwards for the upcoming period. This information, combined with the fact that the company does not pay a dividend to shareholders, underscores the importance of Townsend's role in potentially improving financial performance and investor returns.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into Ribbon Communications' financial health and prospects. There are 10 more InvestingPro Tips available for RBBN, which could be valuable for investors looking to make informed decisions about the company's stock.
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