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Sonus Cuts a New Shape as Ribbon CommunicationsSonus Cuts a New Shape as Ribbon Communications

With the Genband merger process over, Sonus has decided it's time for a new name. Say hello to Ribbon Communications.

November 3, 2017

1 Min Read
Sonus Cuts a New Shape as Ribbon Communications

The names Sonus and Genband have been on the communications networking and services scene for years (remember the buzz around softswitches and session border controllers?) but now they're no more... because they have completed their merger and have decided on a new name -- Ribbon Communications. (See Sonus Networks, Genband Complete Merger .)

A cut above the rest, perhaps?

So what is Ribbon Communications all about? Well, based on 2016 numbers, it's a company that generates revenues of $680 million a year, mostly in North America and from a mix of professional services and technology products (VoLTE and unified communications platforms, signaling systems, session border controllers, policy systems and more, all with a heavy dose of virtualization of course). It has network operator customers, such as America Movil, AT&T, BT, Optus, Verizon and Vodafone, in all the major territories and a broad range of enterprise customers and channel partners.

Figure 1:

But looking at combined financials for 2016, the company suffered an operating loss of more than $31 million, despite gross margins of 56.2%, so one of the initial targets of the Ribbon management will be to trim costs. The company is expecting cuts its operating costs by up to $50 million in 2018 and "drive solid cash flow from operations in the first year after closing," so it knows where it wants, and needs, to be financially.

It's early days for Ribbon -- no doubt we'll get a deeper dive into its plans and expectations in the coming months.

— Ray Le Maistre, International Group Editor, Light Reading

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