Ribbon Communications shares surge on new buyback plan

Published 03/06/2025, 14:58
© Reuters.

Investing.com -- Shares of Ribbon Communications Inc. (NASDAQ:RBBN) soared 20% following the company’s announcement of a new $50 million share repurchase program. The program, which is set to commence on June 5, 2025, and extend through December 31, 2027, signals the Board of Directors’ confidence in the company’s strategic plan and recent performance improvements.

The decision comes on the heels of Ribbon Communications’ record financial results in the fourth quarter of 2024, where the company saw a substantial increase in business, particularly with US Tier One Service Providers. This growth was partly driven by a multi-year contract with Verizon (NYSE:VZ) aimed at modernizing their telecom voice infrastructure, alongside additional projects with other carriers. The company also experienced significant growth in dealings with Enterprise customers and U.S. Federal agencies, contributing to an overall earnings increase of 30% in 2024, aligning with the high end of their original guidance for the year.

Bruce McClelland, President and CEO of Ribbon Communications, stated, "The visibility in our business has improved significantly with positive book-to-bill and growing backlog, and we are focused on driving profitable growth and strong cash flow generation. This share repurchase program exemplifies our commitment to deliver value to our stockholders."

The repurchase program allows for shares to be bought back at management’s discretion through various means, including open market transactions, privately negotiated deals, or through investment banking institutions.

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