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ribbon Ribbon Communications Inc. Reports Third Quarter 2021 Financial Results October 27 , 2021 IP Optical Networks new customer wins and strong profitability in Cloud & Edge Global supply chain constraints affected in - quarter revenue PLANO , Texas , Oct. 27 , 2021 / PRNewswire / -- Ribbon Communications Inc. ( Nasdaq : RBBN ) , a global provider of real - time communications software and IP optical transport solutions to service providers , enterprises , and critical infrastructure sectors , today announced its financial results for the third quarter of 2021 . ribbon For the first nine months of 2021 , sales increased by 2 % , Adjusted EBITDA increased 14 % and Non - GAAP diluted earnings per share increased 29 % versus 2020 ( GAAP loss per share increased by $ 0.291 ) . Revenue for the third quarter of 2021 was $ 210 million , impacted by approximately $ 9.5 million related to supply chain constraints in the quarter . " We're excited by our recent IP Optical Networks wins and growth prospects as our funnel of opportunities strengthen and benefit from the breadth of existing Ribbon relationships with customers , " noted Bruce McClelland , President and Chief Executive Officer of Ribbon Communications . " We believe these customer wins , along with accelerating investments in fiber networks and 5G technology , position Ribbon for strong growth in 2022 and beyond . While revenues this quarter were impacted by supply chain constraints , we believe our IP Optical product book to revenue ratio of 1.17 times demonstrates growing demand . " Financial Highlights¹ , 2 The following table summarizes the consolidated financial highlights for the three and nine months ended September 30 , 2021 and 2020 ( in millions , except per share amounts ) . GAAP Revenue GAAP Net income ( loss ) Non - GAAP Net income GAAP Income ( loss ) per share Weighted average shares outstanding for GAAP income ( loss ) per share Non - GAAP diluted earnings per share Diluted weighted average shares outstanding for Non - GAAP diluted earnings per share Non - GAAP Adjusted EBITDA Three months ended Nine months ended September 30 , September 30 , 2020 2020 2021 $ 210 ( $ 59 ) $ 16 ( $ 0.40 ) 148 $ 0.11 154 $ 32 $ 231 $ 6 $ 22 $ 0.04 152 $ 0.14 152 $ 43 2021 $ 614 ( $ 81 ) $ 48 ( $ 0.55 ) 147 $ 0.31 155 $ 94 $ 600 ( $ 35 ) $ 34 ( $ 0.26 ) 137 $ 0.24 141 $ 82 1 GAAP Net income and GAAP Diluted earnings per share for the three months and nine months ended September 30 , 2021 include $ 0.9 million and $ 3.6 million , respectively , of paid - in - kind interest income earned on the convertible debentures received as consideration from the sale of our Kandy Communications business to American Virtual Cloud Technologies ( " AVCT " ) . The interest income is included in Interest expense , net , and the remeasurement losses and gains are included in Other ( expense ) income , net . The remeasurement ( gains ) losses were calculated using valuation methods in accordance with accounting guidance . Fluctuations in AVCT's stock price will impact the future amounts that are recorded in Other ( expense ) income , net , and could materially impact the Company's quarterly results . Year - to - date GAAP EPS was negatively impacted by $ 0.46 attributable to the remeasurement loss of our investment in AVCT . 2 Please see the reconciliations of non - GAAP financial measures to the most directly comparable GAAP measures and additional information about non - GAAP measures in the section entitled " Discussion of Non - GAAP Financial Measures " in the attached schedules .