Ribbon Communications Inc. (RBBN) stock experienced a decrease of 18.08% in the aftermarket following the announcement of Fourth Quarter 2021 Financial Results. However, the last trading session concluded at $5.31 with an increase of 0.38%.
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Fourth Quarter 2021 Financial Results – What’s up?
RBBN announced fourth-quarter 2021 results on 20th January 2022. The company reported a predicted net revenue of about $231 million. Overall sales, however, fell short of the company’s earlier projection range as supply chain and logistical challenges worsened in the last weeks of the quarter. This, in turn, affected the company’s capacity to deliver items and cut revenues by around $10 million. Moreover, sales in the IP Optical Networks segment climbed by more than 20% quarter over quarter to $83 million.
With some software deals moving into 2022 and increased Enterprise Edge hardware sales, Cloud & Edge revenue is estimated to be $147 million, affecting both revenue and profit. In all divisions, higher component prices, expedite and production fees, and shipping expenditures lowered margins by around 220 basis points compared to forecasts. The lower-than-expected margins were boosted by an extra 200 basis points due to customer and deal mix. Lastly, a part of the higher supply chain-related expenses will last at least until the first half of 2022.
Long Haul Submarine Data Transmission Capacity – Latest Updates
On 13th January 2022, IPS stated that Ribbon’s Apollo Optical Networking system will enable 100Gigabit Ethernet (100GbE) services offered across both terrestrial and submarine cables from Manilla to Hong Kong and Singapore. In order to achieve cost reductions, submarine applications must have a broad capacity and offer the greatest degree of communications services on each channel. By combining dual wavelengths with variable baud rate and modulation, as well as flexgrid technology, the Apollo solution enables IPS to optimize capacity.
What’s Next?
The process of providing connectivity services to clients across great distances in a smooth manner is critical to the business’ success. The company was able to utilize the additional capacity and send world-class communications applications via submarine services in the South China Sea. And this all happened because of Ribbon’s optical transport technology.
