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Ribbon Communications Inc. (NASDAQ:RBBN), a company specializing in computer integrated systems design, announced the appointment of John Townsend as its new Executive Vice President and Chief Financial Officer. The change, effective as early as the filing of the company's third-quarter Form 10-Q and no later than November 1, 2024, comes as the current CFO, Miguel Lopez, retires post the filing of the same financial report.
Townsend, 61, brings extensive financial leadership experience to Ribbon Communications, having most recently served as CFO of Digicel Group. His previous roles include CFO of Verizon (NYSE:VZ) Business and various senior finance positions at Vodafone Group PLC (LON:VOD). Townsend holds a B.A. in Economics and Business Finance from Manchester University and is an Associate of the Institute of Chartered Accountants.
As part of his employment agreement, Townsend will receive an annual base salary of $500,000 and be eligible for an annual cash incentive program with a target bonus opportunity of 75% of his base salary. Additionally, Townsend will be granted a one-time relocation bonus of $50,000 and a temporary housing allowance of $4,500 per month for six months.
Townsend's inducement equity grants include $750,000 in restricted share units (RSUs) and two sets of performance-based restricted share units (PSUs). The RSUs will vest over time, with a portion eligible for vesting in October 2025. The PSUs are tied to financial goals and stock price targets, with vesting contingent on company performance and Townsend's continued employment.
In the event of his termination without cause or for good reason, Townsend is entitled to severance payments including 100% of his annual base salary for a specified period, a prorated annual bonus, and company health plan premium payments for 12 months. If the termination occurs within 12 months of a change in control at the company, Townsend would receive an accelerated vesting of equity awards and additional severance benefits.
In other recent news, Ribbon Communications has seen significant developments. The company announced the appointment of John Townsend as its new Executive Vice President and Chief Financial Officer, succeeding Miguel "Mick" Lopez who is retiring. Townsend, with over 30 years of experience in finance, is set to take his post from November 1, 2024.
Ribbon Communications also reported Q2 2024 revenues of $193 million, marking a decrease from the previous year, but an improved non-GAAP net income of $9 million. The company has set its full-year revenue guidance between $830 million and $850 million, anticipating a 25% revenue increase in the second half of 2024 compared to the first half.
Rosenblatt has maintained a Buy rating on Ribbon Communications, based on expectations of significant growth in both the latter half of 2024 and the first half of 2024. The firm projects revenue and earnings per share to grow by 8% and 13% year-over-year, respectively. They also anticipate the company 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.
InvestingPro Insights
As Ribbon Communications Inc. (NASDAQ:RBBN) welcomes John Townsend as its new CFO, investors may find additional context from recent financial data and analyst insights valuable. According to InvestingPro, RBBN's market capitalization stands at $573.32 million, with a revenue of $801.85 million over the last twelve months as of Q2 2024. Despite a revenue decline of 4.26% during this period, the company maintains a healthy gross profit margin of 55.07%.
InvestingPro Tips highlight that analysts predict RBBN will be profitable this year, which could be seen as a positive sign for the incoming CFO. However, it's worth noting that three analysts have revised their earnings downwards for the upcoming period, suggesting some caution in near-term expectations.
For investors seeking a deeper understanding of RBBN's financial position and future prospects, InvestingPro offers 11 additional tips, providing a more comprehensive analysis to inform investment decisions.
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