What happened
Shares of communications software company Ribbon Communications (RBBN -3.40%) were slammed on Friday, falling about 20% as of 12:54 p.m. EDT.
The stock's decline follows Ribbon's third-quarter update, which included worse-than-expected revenue and non-GAAP (adjusted) earnings per share.
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So what
Ribbon Communications reported third-quarter revenue of $138 million, down from $152 million in the year-ago quarter. The company's non-GAAP earnings per share were $0.13, down from $0.18. On average, analysts were expecting revenue of $156.7 million and non-GAAP EPS of $0.21.
"Overall market conditions remain challenging, but we are intent on enhancing our offerings, broadening our portfolio and helping our customers migrate their legacy networks to the cloud," said Ribbon CEO Fritz Hobbs in the company's third-quarter earnings release.
Now what
Reflecting "persisting soft market conditions" and the company's software development plans, Ribbon CFO Daryl Raiford noted that the company is lowering its full-year outlook for adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). The company now expects full-year adjusted EBITDA of about $85 million, down from a previous outlook for $92 million.
