RBBN Ribbon Communications Inc

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Business

Ribbon Communications Inc. ("Ribbon" or the "Company") is a leading global provider of communications technology to service providers and enterprises. The Company provides a broad range of software and high-performance hardware products, network solutions, and services that enable the secure delivery of data and voice communications, and high-bandwidth networking and connectivity for residential consumers and for small, medium, and large enterprises and industry verticals such as finance, education, government, utilities, and transportation. Ribbon's mission is to create a recognized global technology leader providing cloud-centric solutions that enable the secure exchange of information, with unparalleled scale, performance, and elasticity. The Company is headquartered in Plano, Texas, and has a global presence with research and development, or sales and support locations in over thirty countries around the world.

Basis of Presentation

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring items, necessary for their fair presentation with accounting principles generally accepted in the United States of America ("GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC").

Interim results are not necessarily indicative of results for a full year or any future interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as amended (the "Annual Report"), which was filed with the SEC on February 28, 2024.

Operating Segments

The Company's chief operating decision maker (the "CODM") is its president and chief executive officer. The CODM assesses the Company's performance based on the performance of two separate organizations within Ribbon: the Cloud and Edge segment ("Cloud and Edge") and the IP Optical Networks segment ("IP Optical Networks").

Significant Accounting Policies

The Company's significant accounting policies are disclosed in Note 2 to the Consolidated Financial Statements included in the Annual Report. There were no material changes to the significant accounting policies during the six months ended June 30, 2024.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Ribbon and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates and Judgments

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon in preparing these condensed consolidated financial statements include revenue recognition for multiple element arrangements, inventory valuations, assumptions used to determine the fair value of stock-based compensation and the Preferred Stock and Warrants, intangible asset and goodwill valuations, including impairments, warranty accruals, legal contingencies and recoverability of Ribbon's net deferred tax assets and the related valuation allowances. Ribbon regularly assesses these estimates and records changes in estimates in the period in which they become known. Ribbon bases its

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estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Restricted Cash

The Company classifies as restricted cash all cash pledged as collateral to secure long-term obligations and all cash otherwise limited in use by contractual provisions. At June 30, 2024 and December 31, 2023, the Company had $2.9 million and $0.1 million of restricted cash, respectively, representing restricted short-term bank deposits pledged to secure certain guarantees and surety bonds as security for the Company's obligations under tenders, and contracts.

Transfers of Financial Assets

The Company's IP Optical Networks segment maintains customer receivables factoring agreements with a number of financial institutions. Under the terms of these agreements, the Company may transfer receivables to the financial institutions, on a non-recourse basis, provided that the financial institutions approve the receivables in advance. The Company maintains credit insurance policies from major insurance providers or obtains letters of credit from the customers for a majority of its factored trade receivables. The Company accounts for the factoring of its financial assets as a sale of the assets and records the factoring fees, when incurred, as a component of interest expense in the condensed consolidated statements of operations, and the proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows.

Factoring of accounts receivable and associated fees for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):

			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Accounts receivable sold			25,970						27,266						46,962						48,327
Less factoring fees			(543)						(815)						(934)						(1,270)
Net cash proceeds			25,427						26,451						46,028						47,057

Going Concern Assessment

The accompanying condensed consolidated financial statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

In the Company's condensed consolidated financial statements for the period ended March 31, 2024, substantial doubt was raised about the Company's ability to continue as a going concern due to the lack of sufficient cash on hand or available liquidity to repay its obligations under the 2020 Credit Facility (as defined in Note 9) that was scheduled to mature on March 3, 2025. In response to these conditions, management's plans included refinancing the 2020 Credit Facility and the Company entered into a binding commitment letter for such refinancing on May 15, 2024.

The refinancing contemplated by the binding commitment letter closed on June 21, 2024. See Note 9 for a description of the 2024 Senior Secured Credit Facilities Credit Agreement, the proceeds of which were used to, among other things, repay all amounts outstanding under the 2020 Credit Facility. As a result, there is no longer substantial doubt about the ability of the Company to continue as a going concern.

Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (the "FASB") issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which increases the disclosure requirements around rate reconciliation information and certain types of income taxes companies are required to pay. ASU 2023-09 will be effective for

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the Company beginning in 2025, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which improves reportable segment disclosure requirements, including enhancement of the disclosures of significant segment expenses and interim disclosure requirements, to enable investors to better understand an entity's overall performance and assess potential future cash flows. ASU 2023-07 will be effective for the Company annually beginning in 2024 and on an interim basis beginning in 2025, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's disclosure Update and Simplification Initiative (“ASU 2023-06”), which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. This ASU was issued in response to, and to align GAAP with, the SEC's August 2018 final rule that updates and simplifies disclosure requirements. The effective date for the Company for each amendment will be the date on which the SEC's removal of that related disclosure requirement becomes effective, with early adoption prohibited. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures.

On February 1, 2023, the FASB staff noted that they believe that the Pillar 2 tax, established by the OECD and intended to apply for tax years beginning in 2024, would be an alternative minimum tax and therefore deferred tax assets would not need to be recognized related to this parallel taxing system. On February 2, 2023, the OECD issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar 2 global minimum tax. Under an additional transitional safe harbor released July 17, 2023, the undertaxed profits rule top-up tax will not be applied by any constituent entity's jurisdiction of residence with respect to income earned by a company's ultimate parent entity in its jurisdiction of residence, if the ultimate parent entity's jurisdiction has a corporate tax rate of at least 20%. This transition safe harbor will apply to fiscal years beginning on or before December 31, 2025 and ending before December 31, 2026. The Company is closely monitoring developments and evaluating the impacts these new rules will have on its tax rate, including eligibility to qualify for these safe harbor rules. Based upon preliminary calculations for calendar year 2024, the Company anticipates that it will meet the safe harbors in most jurisdictions, and any remaining top-up tax should be immaterial.

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. For periods in which the Company reports net income, diluted net earnings per share is determined by using the weighted average number of common and dilutive common equivalent shares outstanding during the period, unless the effect is antidilutive.

The shares used to compute loss per share were as follows (in thousands):

			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Weighted average shares outstanding - basic			173,793						170,103						173,110						169,326
Potential dilutive common shares			—						—						—						—
Weighted average shares outstanding - diluted			173,793						170,103						173,110						169,326

Options to purchase the Company's common stock and unvested restricted and performance-based stock units aggregating 11.9 million and 14.1 million shares were excluded from the computation of diluted loss per share for the three and six months ended June 30, 2024 and 2023, respectively, because their effect would have been antidilutive.

On March 28, 2023, the Company issued 55,000 shares of newly designated Series A Preferred Stock (the "Preferred Stock") to investors in a private placement offering at a price of $970 per share, along with 4.9 million warrants (the

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"Warrants") to purchase shares of the Company's common stock, par value $0.0001 per share (the "Private Placement"), at the exercise price of $3.77 per share. The proceeds from the Private Placement were approximately $53.4 million, including approximately $10 million from existing related party stockholders (See Note 11).

On June 25, 2024, the Company redeemed the Preferred Stock with a portion of the proceeds from the refinancing of the 2020 Credit Facility at a rate of 103% for a total of approximately $63.5 million. The Warrants remain outstanding and without modification. See Note 9 for a description of the refinancing of the 2020 Credit Facility.

As of June 30, 2024 and 2023, the potential number of dilutive shares from the Warrants totaled 4.9 million shares. However, there was no impact on weighted average shares outstanding from these Warrants for the three and six months ended June 30, 2024 and 2023 as the average share price of the Company's common stock was below the exercise price of $3.77 per share and their effect would have been antidilutive.

Dividends accrued on the Preferred Stock were not an adjustment to net income (loss) used for the calculation of diluted earnings (loss) per share as these dividends were included in the fair value adjustment of the Preferred Stock which was reflected in Other (expense) income, net until the redemption of the Preferred Stock on June 25, 2024.

Inventory at June 30, 2024 and December 31, 2023 consisted of the following (in thousands):

			June 30, 2024						December 31, 2023
On-hand final assemblies and finished goods inventories			$	97,266					$	93,077
Deferred cost of goods sold			2,530						3,269
			99,796						96,346
Less noncurrent portion (included in Other assets)			(20,580)						(18,825)
Current portion			$	79,216					$	77,521

The Company's intangible assets at June 30, 2024 and December 31, 2023 consisted of the following (in thousands):

June 30, 2024			Weighted average amortization period (years)						Cost						Accumulated amortization						Net carrying value
Developed technology			7.84						$	340,380					$	251,232					$	89,148
Customer relationships			11.86						268,140						147,904						120,236
Trade names			3.88						5,000						4,954						46
Software licenses			3.00						5,698						3,076						2,622
			9.50						$	619,218					$	407,166					$	212,052

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December 31, 2023			Weighted average amortization period (years)						Cost						Accumulated amortization						Net carrying value
Developed technology			7.84						$	340,380					$	239,066					$	101,314
Customer relationships			11.86						268,140						134,743						133,397
Trade names			3.88						5,000						4,901						99
Software licenses			3.00						5,436						2,159						3,277
			9.51						$	618,956					$	380,869					$	238,087

Estimated future amortization expense for the Company's intangible assets at June 30, 2024 was as follows (in thousands):

Years ending December 31,
Remainder of 2024			$	24,558
2025			44,176
2026			39,126
2027			33,969
2028			23,400
2029			18,379
Thereafter			28,444
			$	212,052

There were no changes to the carrying value of the Company's goodwill in the six months ended June 30, 2024 and 2023. The components of goodwill at both June 30, 2024 and 2023 were as follows (in thousands):

			Cloud and Edge						IP Optical Networks						Total
Goodwill			$	392,302					$	191,996					$	584,298
Accumulated impairment losses			(167,406)						(116,000)						(283,406)
			$	224,896					$	75,996					$	300,892

The carrying amounts of the Company's cash equivalents, accounts receivable, accounts payable and borrowings under a revolving credit facility in the condensed consolidated balance sheets approximates fair value due to the immediate or short-term nature of these financial instruments. Ribbon's term debt balance as of June 30, 2024 and December 31, 2023 of $350.0 million and $235.4 million, respectively, had a fair value of approximately $350.0 million and $235.1 million, respectively. Our Warrant liability had a fair value of $6.2 million and $5.3 million as of June 30, 2024 and December 31, 2023, respectively. Our Preferred Stock had a fair value of $53.3 million as of December 31, 2023 and was fully redeemed on June 25, 2024.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tier fair value hierarchy is based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

Level 1. Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. The Company had no assets or liabilities fair valued using Level 1 input at June 30, 2024 or December 31, 2023.

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Level 2. Level 2 applies to assets or liabilities for which there are inputs that are directly or indirectly observable in the marketplace, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). At December 31, 2023, the Company determined the fair value of its defined benefit plans' assets using Level 2 input. There were no significant changes to the Company's defined benefit plans' assets during the six months ended June 30, 2024 that required the calculation of their fair value as of June 30, 2024.

Level 3. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Level 3 input was used to determine the fair value of the Company's Warrants at June 30, 2024 and the fair value of the Company's Preferred Stock and Warrants at December 31, 2023.

Accrued expenses at June 30, 2024 and December 31, 2023 consisted of the following (in thousands):

			June 30, 2024						December 31, 2023
Employee compensation and related costs			$	34,467					$	33,682
Professional fees			22,007						19,702
Taxes payable			5,126						8,383
Other			31,247						29,920
			$	92,847					$	91,687

The changes in the Company's accrual balance in the six months ended June 30, 2024 were as follows (in thousands):

Balance at January 1, 2024			$	12,243
Current period provisions			2,824
Settlements			(2,628)
Balance at June 30, 2024			$	12,439

The Company recorded restructuring and related expense aggregating $1.9 million and $4.3 million in the three months ended June 30, 2024 and 2023, respectively and $5.0 million and $11.2 million in the six months ended June 30, 2024 and 2023, respectively. Restructuring and related expense includes restructuring expense (primarily severance and related costs), estimated future variable lease costs for vacated properties with no intent or ability of sublease, and accelerated rent amortization expense.

For restructuring events that involve lease assets and liabilities, the Company applies lease reassessment and modification guidance and evaluates the right-of-use assets for potential impairment. If the Company plans to exit all or distinct portions of a facility and does not have the ability or intent to sublease, the Company will accelerate the amortization of each of those lease components through the vacate date. The accelerated amortization is recorded as a component of Restructuring and related expense in the Company's condensed consolidated statements of operations. Related variable lease expenses will continue to be expensed as incurred through the vacate date, at which time the Company will reassess the liability balance to ensure it appropriately reflects the remaining liability associated with the premises and record a liability for the estimated future variable lease costs.

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Accelerated amortization of lease assets is recognized from the date that the Company commences the plan to fully or partially vacate a facility, for which there is no intent or ability to enter into a sublease, through the final vacate date. Accelerated amortization of lease assets that are included as a component of restructuring and related expense are excluded from the restructuring accrual activity tables below, as the liability for lease payments for these facilities is included as a component of current and noncurrent Operating lease liabilities in the Company's condensed consolidated balance sheets at June 30, 2024 and December 31, 2023 (see Note 16). The Company may incur additional future expense if it is unable to sublease other locations included in the Company's facilities consolidation initiatives.

Restructuring and related expense for the three and six months ended June 30, 2024 and 2023 was comprised of the following (in thousands):

			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Severance and related costs			$	359					$	2,843					$	1,975					$	8,551
Variable and other facilities-related costs			1,561						$	1,125					3,010						2,131
Accelerated amortization of lease assets due to cease-use			—						$	339					—						562
			$	1,920					$	4,307					$	4,985					$	11,244

2023 Restructuring Plan

On February 22, 2023, the Company's Board of Directors approved a strategic restructuring program (the "2023 Restructuring Plan") to streamline the Company's operations in order to support the Company's investment in critical growth areas. The 2023 Restructuring Plan includes, among other things, charges related to a workforce reduction. Any potential positions eliminated in countries outside the United States are subject to local law and consultation requirements.

In connection with the 2023 Restructuring Plan, the Company recorded restructuring and related expense of $0.4 million and $2.0 million in the three and six months ended June 30, 2024, respectively, consisting entirely of severance related costs. A summary of the 2023 Restructuring Plan accrual activity for the six months ended June 30, 2024 is as follows (in thousands):

			Balance at January 1, 2024						Initiatives charged to expense												Cash payments						Net transfer to operating lease accounts						Balance at June 30, 2024
Severance			$	671					$	1,975											$	(1,852)					$	—					$	794

2022 Restructuring Plan

On February 14, 2022, the Company's Board of Directors approved a strategic restructuring program (the "2022 Restructuring Plan") to streamline the Company's operations in order to support the Company's investment in critical growth areas. The 2022 Restructuring Plan includes, among other things, charges related to a consolidation of facilities and a workforce reduction. Any positions eliminated in countries outside the United States are subject to local law and consultation requirements.

The Company recorded restructuring and related expense of $1.6 million and $3.0 million in the three and six months ended June 30, 2024, respectively, in connection with the 2022 Restructuring Plan for variable and other facilities-related costs. A summary of the 2022 Restructuring Plan accrual activity for the six months ended June 30, 2024 is as follows (in thousands):

			Balance at January 1, 2024						Initiatives charged to expense																		Cash payments												Balance at June 30, 2024
Variable and other facilities-related costs			$	468					3,010																		(3,086)												$	392

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Balance Sheet Classification

The current portions of accrued restructuring were $1.1 million at both June 30, 2024 and December 31, 2023 and are included as components of Accrued expenses in the condensed consolidated balance sheets. The long-term portions of accrued restructuring are included as components of Other long-term liabilities in the condensed consolidated balance sheets. The long-term portions of accrued restructuring were $1.0 million and $1.1 million at June 30, 2024 and December 31, 2023, respectively.

2024 Credit Facility

On June 21, 2024, the Company entered into a Senior Secured Credit Facilities Credit Agreement (the “2024 Credit Facility” and “2024 Credit Agreement”) as guarantor, with the Company’s wholly-owned subsidiary, Ribbon Communications Operating Company, Inc., as the borrower (the “Borrower”), HPS Investment Partners, LLC ("HPS"), as administrative agent, and HPS and WhiteHorse Capital Management, LLC ("WhiteHorse" and, together with HPS, the "Lenders"), pursuant to which the Lenders have provided the Company with a $385 million senior secured credit facility comprised of (i) a $350 million term loan (the “2024 Term Loan”) and (ii) a $35 million revolving credit facility (the “2024 Revolver”), including a $20 million sublimit for letters of credit. The proceeds received from the 2024 Term Loan were used to (a) repay 100% of the amounts outstanding under the 2020 Credit Facility, (b) redeem in full the Preferred Stock and (c) pay fees and expenses related to the 2024 Credit Facility. Any excess proceeds are expected to be used by the Company for working capital and other general corporate purposes.

The 2024 Term Loan and the 2024 Revolver bear interest, at the Borrower's option, at either the Alternate Base Rate (“ABR”) or Term Secured Overnight Financing Rate ("SOFR") with an Applicable Margin for each (all as defined in the 2024 Credit Agreement). Margins for the first six months are 5.25% per annum for ABR Loans and 6.25% per annum for SOFR Loans. Thereafter, margins vary based on the Company’s Consolidated Net Leverage Ratio, ranging from 4.75% to 5.25% per annum for ABR Loans and 5.75% to 6.25% per annum for SOFR Loans. The 2024 Term Loan and the 2024 Revolver will both mature on June 21, 2029. The 2024 Term Loan is to be repaid in equal quarterly installments: approximately $0.9 million beginning with the third quarter of 2024 through the second quarter of 2025; approximately $2.2 million beginning with the third quarter of 2025 and ending with the second quarter of 2027; and approximately $4.4 million quarterly thereafter, with the remaining principal balance of approximately $298.4 million due on the maturity date of June 21, 2029. In connection with the establishment of the 2024 Credit Facility, $7.7 million of original issue discount was withheld by the Lenders and the Company incurred $6.1 million of debt issuance costs for a total of $13.8 million that is being amortized to Interest expense, net over the term of the agreement.

The 2024 Credit Facility requires compliance with a Maximum Consolidated Net Leverage Ratio (the "Financial Covenant"), as defined in the 2024 Credit Facility and tested on a quarterly basis. The Company was in compliance with the Financial Covenant as of June 30, 2024.

The indebtedness and other obligations under the 2024 Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by the Company and its subsidiaries (together, the "Guarantors"). The 2024 Credit Facility is secured on a first-priority basis by a lien on substantially all assets of the Borrower and the Guarantors.

2020 Credit Facility

On June 21, 2024, the Company used the proceeds from the 2024 Credit Facility to, among other things, repay all amounts outstanding under its Senior Secured Credit Facilities Credit Agreement, dated March 3, 2020 (as amended, the "2020 Credit Facility"), by and among the Company, as a guarantor, Ribbon Communications Operating Company, Inc., as the borrower (the "Borrower"), Citizens Bank, N.A., Santander Bank, N.A., and others as lenders ("Lenders"). The Company wrote off $2.0 million of debt issuance costs in conjunction with the early extinguishment of the 2020 Credit Facility.

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The 2020 Credit Facility had a maturity date of March 2025 and originally provided for $500 million of commitments from the Lenders to the Borrower, comprised of $400 million in term loans (the "2020 Term Loan Facility") and a $100 million facility available for revolving loans (the "2020 Revolving Credit Facility"). Under the 2020 Revolving Credit Facility, a $30 million sublimit was originally available for letters of credit and a $20 million sublimit was available for swingline loans.

The indebtedness and other obligations under the 2020 Credit Facility were unconditionally guaranteed on a senior secured basis by the Company, Edgewater Networks, Inc., a wholly-owned subsidiary of the Company, and GENBAND Inc., a wholly-owned subsidiary of the Company (together, the "Guarantors"). The 2020 Credit Facility was secured by first-priority liens on substantially all of the assets of the Borrower and the Guarantors, including substantially all of the assets of the Company.

The 2020 Credit Facility required compliance with certain financial covenants, including a minimum Consolidated Fixed Charge Coverage Ratio and a maximum Consolidated Net Leverage Ratio (each as defined in the 2020 Credit Facility, and each tested on a quarterly basis).

On March 24, 2023, the Company entered into the Sixth Amendment to the 2020 Credit Facility (the “Sixth Amendment”) effective March 30, 2023. The Sixth Amendment, among other things, increased the Maximum Consolidated Net Leverage Ratio (as defined in the 2020 Credit Facility), for the first, second and third quarters of 2023 to 4.50:1.00. In the fourth quarter of 2023 and the first quarter of 2024, the Maximum Consolidated Net Leverage Ratio declined to 4.25:1.00 and 4.00:1.00, respectively. Also, the Sixth Amendment reduced the minimum Consolidated Fixed Charge Coverage Ratio (as defined in the 2020 Credit Facility) to 1.10:1.00 through the first quarter of 2024. The Sixth Amendment reduced the maximum borrowings allowed under the 2020 Revolving Credit Facility from $100 million to $75 million and the sublimit available for letters of credit was reduced from $30 million to $20 million. In addition, the Sixth Amendment replaced LIBOR with SOFR as the alternative rate available to the Company for calculating interest owed under the 2020 Credit Facility with the margin fixed at 4.5%. In conjunction with the Sixth Amendment, the Company made a $75 million prepayment that was applied to the final payment due upon maturity in March 2025. The $75 million prepayment was almost entirely funded with the net proceeds from the Private Placement and the sales of our interest rate swap. Debt issuance costs associated with the Sixth Amendment totaled $1.7 million and were being amortized on a straight-line basis over the remaining life of the 2020 Credit Facility and were written off in conjunction with the early extinguishment of the 2020 Credit Facility on June 21, 2024.

The Company's interest rates under the 2020 Term Loan for the six months ended June 30, 2023 benefited from a hedge instrument that was in place, specifically a fixed rate swap, which was sold in March 2023 (see Note 10). As a result of the fixed rate swap sold in March 2023, the ongoing interest rate was based upon U.S. dollar SOFR plus a fixed margin of 4.5%. The Company was in compliance with all covenants of the 2020 Credit Facility at December 31, 2023, including the current Consolidated Net Leverage Ratio calculation that considered the Company's debt to include Preferred Stock.

The Company had the following outstanding borrowings, unamortized debt issuance costs and original issue discount, letters of credit, interest rates, and remaining borrowing capacity under the 2024 Credit Facility and the 2020 Credit Facility as of June 30, 2024 and December 31, 2023, respectively:

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			June 30, 2024						December 31, 2023
Current portion of Term Debt			$	3,500					$	35,102
Long-term Debt, net of Current:
Long-term Debt, net of Current (Face Amount)			$	346,500					$	200,293
Original Issue Discount			(6,961)						—
Unamortized Debt Issuance Costs - Contra-Liability			(5,560)						(2,811)
Long-term Debt, net of Current			$	333,979					$	197,482
Total Face Amount of Borrowings			$	350,000					$	235,395
Unamortized Original Issue Discount and Debt Issuance Costs:
Other Assets			1,238						557
Long-Term Debt - Contra Liability			12,521						2,811
Total Unamortized Original Issue Discount and Debt Issuance Costs			$	13,759					$	3,368
Letters of Credit Outstanding			$	—					$	2,711
Remaining Borrowing Capacity			$	35,000					$	72,289
Average Interest Rates:
Term Loan			11.6		%				10.0		%
Letters of Credit			—		%				4.5		%

The Company's debt maturities as of June 30, 2024 were as follows:

Years ending December 31,
Remainder of 2024			$	1,750
2025			6,125
2026			8,750
2027			13,125
2028			17,500
2029			302,750
			$	350,000

Letters of Credit and Other Guarantees

The Company uses letters of credit, bank guarantees, and surety bonds in the course of its business. At June 30, 2024, the Company had $9.5 million of letters of credit, bank guarantees, and surety bonds outstanding (collectively, "Guarantees") under various uncommitted facilities and no letters of credit outstanding under the 2024 Credit Facility. At December 31, 2023, the Company had Guarantees aggregating $7.9 million, comprised of the $2.7 million of letters of credit under the 2020 Credit Facility described above and $5.2 million of Other Guarantees. At June 30, 2024 and December 31, 2023, the Company had cash collateral of $2.9 million and $0.1 million, respectively, supporting the Guarantees, which are reported in Restricted cash in the Company's condensed consolidated balance sheets.

The Company is exposed to financial market risk related to foreign currency fluctuations and changes in interest rates. These exposures are actively monitored by management. To manage the volatility related to the exposure to changes in interest rates, the Company may enter into derivative financial instruments. Management's objective has been to reduce, where it is

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deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in interest rates. Ribbon's policies and practices are to use derivative financial instruments only to the extent necessary to manage exposures. Ribbon does not hold or issue derivative financial instruments for trading or speculative purposes.

The Company records derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a specific risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge, or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

Cash Flow Hedge of Interest Rate Risk

The 2024 Term Loan Facility and the 2020 Term Loan Facility had outstanding balances of $350.0 million and $235.4 million at June 30, 2024 and December 31, 2023, respectively. The 2024 Revolving Credit Facility and the 2020 Revolving Credit Facility were undrawn at June 30, 2024 and December 31, 2023, respectively. Borrowings under the 2024 Credit Facility and the 2020 Credit Facility have variable interest rates based on SOFR (see Note 9). As a result of exposure to interest rate movements, during March 2020, the Company entered into an interest rate swap arrangement, which effectively converted its $400 million term loan with its variable interest rate based upon one-month LIBOR to an aggregate fixed rate of 0.904%, plus a leverage-based margin as defined in the 2020 Credit Facility.

On July 22, 2022, the Company sold $30 million of the notional amount of its interest rate swap back to its counterparty for $1.5 million, reducing the notional amount of this swap to $370 million. On August 16, 2022 the Company sold another $30 million of the notional amount of its interest rate swap back to its counterparty for $1.6 million, reducing the notional amount to $340 million, which approximated the current level of our term loan debt then outstanding. The gain in accumulated other comprehensive (loss) income related to the $60 million notional amount sold of $3.1 million was being released into earnings on a straight line basis over the remaining term of the 2020 Credit Facility as a decrease to interest expense until it was refinanced on June 21, 2024, the amortization of which totaled $0.2 million and $0.4 million for the three and six months ended June 30, 2024, respectively, and $0.2 million and $0.5 million for the three and six months ended June 30, 2023, respectively. The remaining unamortized gain in accumulated other comprehensive (loss) income of approximately $0.5 million was written off to interest expense in conjunction with the refinancing of the 2020 Credit Facility on June 21, 2024. See Note 9 for a description of the refinancing.

On March 24, 2023, the Company received $9.4 million, consisting of $0.4 million of interest and $9.0 million for the sale of $170 million of its $340 million notional amount interest rate swap back to its counterparty, reducing the notional amount to $170 million. On March 27, 2023, the Company received $9.8 million, consisting of $0.4 million of interest and $9.4 million for the sale of the remaining $170 million of its interest rate swap back to its counterparty. The portion of the gain in accumulated other comprehensive (loss) income related to the term loan debt prepaid on the date of the final sale of our swap totaled $7.3 million and was released into earnings immediately as Other expense, net. The portion of the gain in accumulated other comprehensive (loss) income related to our remaining term loan debt balance was $12.0 million and was being released into earnings on a straight line basis over the remaining term of the 2020 Credit Facility as a decrease to interest expense until it was refinanced on June 21, 2024, the amortization of which totaled $1.4 million and $3.0 million for the three and six months ended June 30, 2024, respectively, and $1.6 million for both the three and six months ended June 30, 2023. The remaining unamortized gain in accumulated other comprehensive (loss) income of $4.4 million was written off to interest expense in conjunction with the refinancing of the 2020 Credit Facility on June 21, 2024. See Note 9 for a description of the refinancing.

The Company’s objectives in using interest rate derivatives have been to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has used an interest rate swap as part of its

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interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the related agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of designated derivatives that qualify as cash flow hedges is recorded in accumulated other comprehensive income in the condensed consolidated balance sheet and is subsequently reclassified into earnings in the period that the hedged forecasted transactions affect earnings. During the three and six months ended June 30, 2023, such a derivative was used to hedge the variable cash flows associated with the outstanding borrowings under the 2020 Credit Facility and the Company accounted for this derivative as an effective hedge until the final portion of the swap was sold on March 27, 2023. Any ineffective portion of the change in the fair value of the derivative would have been recognized directly in earnings. However, there was no hedge ineffectiveness recorded over the life of the swap.

Amounts reported in accumulated other comprehensive income related to the Company's derivative are reclassified to interest expense as interest is accrued on the Company’s variable-rate debt. The impact of the Company’s derivative financial instrument on its condensed consolidated statements of comprehensive (loss) income for the three and six months ended June 30, 2024 and 2023 was as follows, net of tax (in thousands):

			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Gain (loss) recognized in other comprehensive income (loss) on swap, net of tax			$	—					$	—					$	—					$	(2,715)
Amount reclassified from accumulated other comprehensive income to other expense, net upon sale of swap, net of tax			—						—						—						(5,099)
Amount reclassified from accumulated other comprehensive income to interest expense			(4,698)						(1,322)						(6,019)						(4,507)
Unrealized gain (loss) on interest rate swap, net of reclassifications and amortization			$	(4,698)					$	(1,322)					$	(6,019)					$	(12,321)

On March 28, 2023, the Company issued 55,000 shares of Preferred Stock to investors in the Private Placement at a price of $970 per share, along with 4,858,090 Warrants with an exercise price of $3.77 per share.

On June 25, 2024, the Company redeemed the Preferred Stock with a portion of the proceeds from the refinancing of the 2020 Credit Facility at a rate of 103% for a total of approximately $63.5 million. The Warrants remain outstanding and without modification. See Note 9 for a description of the refinancing of the 2020 Credit Facility.

The Company accounted for the Preferred Stock until it was redeemed and continues to account for the Warrants as liability-classified instruments based on an assessment of their specific terms in accordance with ASC Topic 480, Distinguishing Liabilities from Equity. The fair value option was elected for the Preferred Stock, as the Company considered fair value to best reflect its expected future economic value. These liabilities are remeasured to fair value at each reporting date using the same valuation methodology applied upon issuance using current input assumptions.

The value of the Preferred Stock was calculated quarterly through March 31, 2024 using the Black-Derman-Toy (BDT) stochastic yield lattice model to capture the optimal timing of repayment, increasing dividend rate and other features and the value of the Warrants is calculated quarterly using the Black-Scholes Pricing Model.

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Changes in the fair value of the Preferred Stock and the Warrants are reported as Other expense, net in the Company's condensed consolidated statements of operations.

The Company determined the fair value of the Warrants using Level 3 input. The key assumptions into the model utilized was as follows as of June 30, 2024:

			Warrants (Black-Scholes)
Stock price			$3.29
Strike price			$3.77
Risk-free rate			4.52%
Volatility			61.5%
Dividend yield			0.0%
Time to expiration (years)			2.8
Fair value of Warrant per share			$1.27

The changes in the Company's Preferred Stock and Warrant liabilities for the six months ended June 30, 2024 were as follows (in thousands):

			Preferred stock liability
Balance at January 1, 2024			$	53,337
Payable in-kind dividends			2,743
Reversal of fair value adjustments			5,605
Call premium (3%)			1,851
Redemption (June 25, 2024)			$	(63,536)
Balance at June 30, 2024			$	—

			Warrant liability
Balance at January 1, 2024			$	5,295
Fair value change			875
Balance at June 30, 2024			$	6,170

The Preferred Stock, redeemed on June 25, 2024, was subordinate to the Company's indebtedness and senior to the Company’s common stock or other equity. Holders of the Preferred Stock were entitled to cumulative dividends that accrued quarterly. Dividends were payable in-kind during the first year at a rate of 9.25%. At the Company’s option, the dividends were payable in-kind or in cash during the second year at a rate of 9.75%. Dividends thereafter were to be payable in cash at a rate of 12.00%. The proceeds from the Preferred Stock issuance were approximately $53.4 million, including $10.0 million from existing related party stockholders. Offering costs paid by the Company of approximately $3.5 million were recorded in Other expense, net in the year ended December 31, 2023. The net proceeds from the Private Placement were used for the repayment of debt. The Preferred Stock was redeemable on or after the first and second anniversaries of the closing date at a rate of 103% and 102%, respectively.

The Warrants, which expire March 30, 2027, are immediately exercisable and upon an event such as a merger, consolidation, asset sale or similar change of control, may be exercised and the holders may vote the underlying shares of common stock. In connection with the Private Placement, the Company provided the investors with certain registration rights relating to the Preferred Stock, the Warrants and the shares of the Company’s common stock underlying the Warrants, that

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required the Company to file a registration statement on Form S-3 with the SEC within 30 days following the closing date of the Private Placement. The registration requirement was completed on May 19, 2023.

The Company derives revenue from two primary sources: products and services. Product revenue includes the Company's hardware and software that function together to deliver the products' essential functionality. Software and hardware are also sold on a standalone basis. Services include customer support (software updates, upgrades and technical support), consulting, design services, installation services and training. Generally, contracts with customers contain multiple performance obligations, consisting of products and services. For these contracts, the Company accounts for individual performance obligations separately if they are considered distinct.

When an arrangement contains more than one performance obligation, the Company will allocate the transaction price to each performance obligation on a relative standalone selling price basis. The Company utilizes the observable price of goods and services when they are sold separately to similar customers in order to estimate standalone selling price.

The Company's software licenses typically provide a perpetual right to use the Company's software. The Company also sells term-based software licenses that expire and Software-as-a-Service ("SaaS")-based software which are referred to as subscription arrangements. The Company does not customize its software nor are installation services required, as the customer has a right to utilize internal resources or a third-party service company. The software and hardware are delivered before related services are provided and are functional without professional services or customer support. The Company has concluded that its software licenses are functional intellectual property that are distinct, as the user can benefit from the software on its own. Product revenue is typically recognized upon transfer of control or when the software is made available for download, as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from, the functional intellectual property. The Company begins to recognize software revenue related to the renewal of subscription software licenses at the start of the subscription period.

The Company offers warranties on its products. Certain of the Company's warranties are considered to be assurance-type in nature, ensuring the product is functioning as intended. Assurance-type warranties do not represent separate performance obligations. The Company also sells separately-priced maintenance service contracts which qualify as service-type warranties and represent separate performance obligations. The Company does not allow and has no history of accepting product returns.

Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts at a percentage of list or net product price. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year.

The Company's professional services include consulting, technical support, resident engineer services, design services and installation services. Because control transfers over time, revenue is recognized based on progress toward completion of the performance obligation. The method to measure progress toward completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the input method to measure progress for its contracts because it believes such method best depicts the transfer of assets to the customer, which occurs as the Company incurs costs for the contracts. However, in some instances, the Company uses the output method because it best depicts the transfer of asset to the customer. Under the cost-to-cost measure of progress, the progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. When the measure of progress is based upon expended labor, progress toward completion is measured as the ratio of labor time expended to date versus the total estimated labor time required to complete the performance obligation. Revenue is recorded proportionally as costs are incurred or as labor is expended. Costs to fulfill these obligations include internal labor as well as subcontractor costs.

Customer training includes courses offered by the Company. The related revenue is typically recognized as the training services are performed.

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The Company's typical performance obligations include the following:

Performance Obligation

When Performance Obligation is Typically Satisfied

When Payment is Typically Due

Software and Product Revenue

Software licenses (perpetual or term)

Upon transfer of control; typically, when made available for download (point in time)

Generally, within 30 days of invoicing except for term licenses, which may be paid for over time

Software licenses (subscription)

Upon activation of hosted site (over time)

Generally, within 30 days of invoicing

Hardware

When control of the hardware passes to the customer; typically, upon delivery (point in time)

Generally, within 30 days of invoicing

Software upgrades

Upon transfer of control; typically, when made available for download (point in time)

Generally, within 30 days of invoicing

Customer Support Revenue

Customer support

Ratably over the course of the support contract (over time)

Generally, within 30 days of invoicing

Professional Services

Other professional services (excluding training services)

As work is performed (over time)

Generally, within 30 days of invoicing (upon completion of services)

Training

When the class is taught (point in time)

Generally, within 30 days of services being performed

Significant Judgments

The Company's contracts with customers often include promises to transfer multiple products and services to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.

Judgment is required to determine the standalone selling price ("SSP") for each distinct performance obligation. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, the Company may use information such as the size of the customer and geographic region in determining the SSP.

Deferred Revenue

Deferred revenue is a contract liability representing amounts collected from or invoiced to customers in excess of revenue recognized. This results primarily from the billing of annual customer support agreements where the revenue is recognized over the term of the agreement. The value of deferred revenue will increase or decrease based on the timing of recognition of revenue.

Disaggregation of Revenue

The Company disaggregates its revenue from contracts with customers based on the nature of the products and services and the geographic regions in which each customer is domiciled. The Company's revenue for the three and six months ended June

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30, 2024 and 2023 was disaggregated as follows:

Three months ended June 30, 2024			Product revenue						Service revenue (maintenance)						Service revenue (professional services)						Total revenue
United States			$	35,368					$	32,639					$	13,462					$	81,469
Europe, Middle East and Africa			33,239						17,491						8,188						58,918
Asia Pacific			26,081						9,759						2,597						38,437
Other			4,445						7,631						1,720						13,796
			$	99,133					$	67,520					$	25,967					$	192,620

Three months ended June 30, 2023			Product revenue						Service revenue (maintenance)						Service revenue (professional services)						Total revenue
United States			$	53,545					$	33,890					$	11,842					$	99,277
Europe, Middle East and Africa			28,831						17,998						7,679						54,508
Asia Pacific			31,810						10,164						2,269						44,243
Other			3,161						7,576						1,853						12,590
			$	117,347					$	69,628					$	23,643					$	210,618

Six months ended June 30, 2024			Product revenue						Service revenue (maintenance)						Service revenue (professional services)						Total revenue
United States			$	61,975					$	65,486					$	25,122					$	152,583
Europe, Middle East and Africa			74,928						35,187						15,886						126,001
Asia Pacific			42,714						20,000						5,524						68,238
Other			7,126						15,228						3,108						25,462
			$	186,743					$	135,901					$	49,640					$	372,284

Six months ended June 30, 2023			Product revenue						Service revenue (maintenance)						Service revenue (professional services)						Total revenue
United States			$	91,612					$	66,963					$	22,695					$	181,270
Europe, Middle East and Africa			56,266						38,125						14,254						108,645
Asia Pacific			57,425						19,536						5,413						82,374
Other			5,362						15,592						3,534						24,488
			$	210,665					$	140,216					$	45,896					$	396,777

The Company's product revenue from indirect sales through its channel partner program and from its direct sales program for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands):

			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Indirect sales through channel partner program			$	31,282					$	37,590					$	76,957					$	73,504
Direct sales			67,851						79,757						109,786						137,161
			$	99,133					$	117,347					$	186,743					$	210,665

The Company's product revenue from sales to enterprise customers and from sales to service provider customers for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands):

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			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Sales to enterprise customers			$	38,040					$	37,707					$	75,910					$	65,119
Sales to service provider customers			61,093						79,640						110,833						145,546
			$	99,133					$	117,347					$	186,743					$	210,665

The Company's product revenue and service revenue components by segment for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):

			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Product revenue:
Cloud and Edge			$	39,586					$	52,352					$	71,099					$	95,191
IP Optical Networks			59,547						64,995						115,644						115,474
Total product revenue			$	99,133					$	117,347					$	186,743					$	210,665
Service revenue:
Maintenance:
Cloud and Edge			$	52,663					$	55,034					$	105,859					$	109,844
IP Optical Networks			14,857						14,594						30,042						30,372
Total maintenance revenue			67,520						69,628						135,901						140,216
Professional services:
Cloud and Edge			18,306						17,870						35,266						34,701
IP Optical Networks			7,661						5,773						14,374						11,195
Total professional services revenue			25,967						23,643						49,640						45,896
Total service revenue			$	93,487					$	93,271					$	185,541					$	186,112

Revenue Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable; unbilled receivables, which are contract assets; and customer advances and deposits, which are contract liabilities, in the Company's condensed consolidated balance sheets. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Completion of services and billing may occur subsequent to revenue recognition, resulting in contract assets. The Company may receive advances or deposits from its customers before revenue is recognized, resulting in contract liabilities that are classified as deferred revenue. These assets and liabilities are reported in the Company's condensed consolidated balance sheets on a contract-by-contract basis as of the end of each reporting period. Changes in the contract asset and liability balances during the six months ended June 30, 2024 were not materially impacted by any factors other than billing and revenue recognition. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts. Unbilled receivables stem primarily from engagements where services have been performed; however, billing cannot occur until services are completed.

In some arrangements, the Company allows customers to pay for term-based software licenses and products over the term of the software license. The Company also sells SaaS-based software under subscription arrangements, with payment terms over the term of the SaaS agreement. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables that are anticipated to be invoiced in the next twelve months are included in Accounts receivable on the Company's condensed consolidated balance sheets. The changes in the Company's accounts receivable, unbilled receivables and deferred revenue balances for the six months ended June 30, 2024 were as follows (in thousands):

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			Accounts receivable						Unbilled accounts receivable						Deferred revenue (current)						Deferred revenue (long-term)
Balance at January 1, 2024			$	186,938					$	81,483					$	113,381					$	19,218
Increase (decrease), net			(42,102)						(15,365)						(13,834)						(2,586)
Balance at June 30, 2024			$	144,836					$	66,118					$	99,547					$	16,632

The Company recognized approximately $78 million of revenue in the six months ended June 30, 2024 that was recorded as deferred revenue at December 31, 2023 and approximately $71 million of revenue in the six months ended June 30, 2023 that was recorded as deferred revenue at December 31, 2022. Of the Company's deferred revenue reported as long-term in its condensed consolidated balance sheet at June 30, 2024, the Company expects that approximately $6 million will be recognized as revenue in 2025, approximately $6 million will be recognized as revenue in 2026 and approximately $5 million will be recognized as revenue in 2027 and beyond.

All freight-related customer invoicing is recorded as revenue, while the shipping and handling costs that occur after control of the promised goods or services transfer to the customer are reported as fulfillment costs, a component of Cost of revenue - product in the Company's condensed consolidated statements of operations.

Deferred Commissions Cost

Sales commissions earned by the Company's employees are considered incremental and recoverable costs of obtaining a contract with a customer. These costs have been deferred on our condensed consolidated balance sheet and are being amortized over the expected life of the customer contract, which is generally five years. At both June 30, 2024 and December 31, 2023, the Company had $3 million of deferred sales commissions capitalized.

The Company has two reportable segments, which are intended to align with the manner in which the business is managed: Cloud and Edge, and IP Optical Networks.

The Cloud and Edge segment provides secure and reliable software and hardware products, solutions and services for enabling Voice over Internet Protocol ("VoIP") communications, Voice over Long-Term Evolution ("VoLTE") and Voice Over 5G ("VoNR") communications, and Unified Communications and Collaboration ("UC&C") within service provider and enterprise networks and from the cloud. The Cloud and Edge products are increasingly software-centric and cloud-native for deployment on private, public or hybrid cloud infrastructures, in data centers, on enterprise premises and within service provider networks. Ribbon's Cloud and Edge product portfolio consists primarily of its Session Border Controller ("SBC") products and its Network Transformation products.

The IP Optical Networks segment provides high-performance, secure solutions for IP networking and optical transport, supporting wireless networks including 5G, metro and edge aggregation, core networking, data center interconnect, legacy transformation and transport solutions for wholesale carriers. This portfolio is offered to service provider, enterprise and industry verticals with critical transport network infrastructures including utilities, government, defense, transportation, and education and research.

The Company has not provided segment asset information as such information is not provided to the CODM and accordingly, asset information is not used in assessing segment performance. Segment revenue and expenses included in the tables below represent direct revenue and expense attributable to each segment. Please see Note 4 for information regarding the allocation of goodwill between segments.

The CODM utilizes revenue and adjusted gross profit to measure and assess each segment's performance. The Company calculates adjusted gross profit by excluding from cost of revenue: amortization of acquired technology, stock-based compensation, and may also exclude other items in future periods that the Company believes are not part of the Company's core business. Adjusted gross profit is not a financial measure determined in accordance with U.S. GAAP, may not be comparable

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to similarly titled measures used by other companies, and should not be considered a substitute for gross profit or other results reported in accordance with U.S. GAAP. See below for a reconciliation of adjusted gross profit to gross profit which is the most directly comparable U.S. GAAP measure.

The tables below provide revenue, adjusted gross profit and depreciation expense by reportable segment for the three and six months ended June 30, 2024 and 2023 (in thousands):

			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Segment revenue:
Cloud and Edge			$	110,555					$	125,256					$	212,224					$	239,736
IP Optical Networks			82,065						85,362						160,060						157,041
Revenue			$	192,620					$	210,618					$	372,284					$	396,777

			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Segment adjusted gross profit:
Cloud and Edge			$	72,946					$	83,299					$	140,065					$	153,274
IP Optical Networks			31,791						26,251						63,756						45,751
Total segment adjusted gross profit			104,737						109,550						203,821						199,025
Stock-based compensation expense			(338)						(641)						(916)						(1,325)
Amortization of acquired technology			(6,532)						(7,439)						(13,083)						(14,828)
Gross profit			$	97,867					$	101,470					$	189,822					$	182,872

			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Segment depreciation expense:
Cloud and Edge			$	2,324					$	2,477					$	4,657					$	4,976
IP Optical Networks			1,052						1,072						2,113						2,083
Depreciation expense			$	3,376					$	3,549					$	6,770					$	7,059

The following customer contributed 10% or more of the Company's revenue in the three and six months ended June 30, 2024 and 2023:

Three months ended

Six months ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Verizon Communications Inc.

12%

11%

11%

11%

At June 30, 2024 and December 31, 2023, no customer accounted for 10% or more of the Company's accounts receivable balance. The Company performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts and such losses have historically been within management's expectations.

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The Company grants stock-based compensation to employees, officers and non-employee directors, as well as consultants and advisors of the Company and its subsidiaries under its Amended and Restated 2019 Incentive Award Plan which provides for the award of stock options, stock appreciation rights, restricted stock awards ("RSAs"), performance-based stock awards, restricted stock units ("RSUs"), performance-based stock units ("PSUs") and other stock- or cash-based awards.

Executive Equity Arrangements

Inducement Awards

In connection with his appointment as President and Chief Executive Officer of Ribbon on March 16, 2020, the Company awarded Bruce McClelland sign-on equity grants, comprised of RSUs and a PSU grant with both market and service conditions. As of June 30, 2024, the Company estimates that the market conditions surrounding the PSUs granted will not be met by the expiration date of September 1, 2024.

Performance-Based Stock Grants

In addition to granting RSAs and RSUs to its executives and certain of its employees, the Company also grants PSUs to certain of its executives and certain other employees. Vesting periods for RSAs, RSUs, and PSUs granted range from one to three years. PSUs granted consist of 60% that have both performance and service conditions (the "Performance PSUs") and 40% that have both market and service conditions (the "Market PSUs"). Each Performance PSU is comprised of three consecutive fiscal year performance periods beginning in the year of grant, with one-third of the Performance PSUs attributable to each fiscal year performance period. The Market PSUs have one three-year performance period, beginning January 1 in the year of grant and ending on December 31, three years thereafter. The number of shares of common stock underlying the PSUs that can be earned will not exceed 200% of the Performance or Market PSUs. Shares subject to PSUs that fail to be earned will be forfeited.

Restricted Stock Units

The activity related to the Company's RSUs for the six months ended June 30, 2024 was as follows:

			Shares						Weighted Average Grant Date Fair Value
Unvested balance at January 1, 2024			7,091,368						$	3.18
Granted			1,374,541						$	3.22
Vested			(3,027,037)						$	3.54
Forfeited			(294,994)						$	3.21
Unvested balance at June 30, 2024			5,143,878						$	2.98

The total grant date fair value of shares of restricted stock underlying RSUs that vested during the six months ended June 30, 2024 was $10.7 million.

Performance-Based Stock Units

The activity related to the Company's PSUs for the six months ended June 30, 2024 was as follows:

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			Shares						Weighted Average Grant Date Fair Value
Unvested balance at January 1, 2024			6,297,931						$	2.07
Granted			1,338,985						$	4.32
Vested			(288,672)						$	3.14
Forfeited			(619,168)						$	5.82
Unvested balance at June 30, 2024			6,729,076						$	2.13

The total grant date fair value of shares of restricted stock underlying PSUs that vested during the six months ended June 30, 2024 was $0.9 million.

Stock-Based Compensation

The condensed consolidated statements of operations include stock-based compensation for the three and six months ended June 30, 2024 and 2023 as follows (in thousands):

			Three months ended												Six months ended
			June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Product cost of revenue			$	64					$	115					$	170					$	264
Service cost of revenue			274						526						746						1,061
Research and development			616						1,300						1,684						2,562
Sales and marketing			954						2,142						2,111						4,271
General and administrative			1,586						2,033						3,305						3,806
			$	3,494					$	6,116					$	8,016					$	11,964

At June 30, 2024, there was $19.0 million, net of expected forfeitures, of unrecognized stock-based compensation expense related to unvested RSUs and PSUs. This expense is expected to be recognized over a weighted average period of approximately one year.

The Company has operating leases for corporate offices and research and development facilities and has historically had finance leases for certain equipment. Operating leases are reported separately in the Company's condensed consolidated balance sheets. Assets acquired under finance leases, if any, are included in Property and equipment, net, in the condensed consolidated balance sheets.

The Company determines if an arrangement is a lease at inception. A contract is determined to contain a lease component if the arrangement provides the Company with a right to control the use of an identified asset. Lease agreements may include lease and non-lease components. In such instances for all classes of underlying assets, the Company does not separate lease and non-lease components but rather, accounts for the entire arrangement under leasing guidance. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized on a straight-line basis over the lease term.

Right-of-use assets and lease liabilities are initially measured based on the present value of the future minimum fixed lease payments (i.e., fixed payments in the lease contract) over the lease term at the commencement date. As the Company's existing leases do not have a readily determinable implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future minimum fixed lease payments. The Company calculates its incremental borrowing rate to reflect the interest rate that it would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term and considers its historical borrowing activities and market data from entities with comparable credit ratings in this determination. The

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measurement of the right-of-use asset also includes any lease payments made prior to the commencement date (excluding any lease incentives) and initial direct costs incurred. The Company assessed its right-of-use assets for impairment as of June 30, 2024 and December 31, 2023 and determined no impairment has occurred.

Lease terms may include options to extend or terminate the lease and the Company incorporates such options in the lease term when it has the unilateral right to make such an election and it is reasonably certain that the Company will exercise that option. In making this determination, the Company considers its prior renewal and termination history and planned usage of the assets under lease, incorporating expected market conditions.

For operating leases, lease expense for minimum fixed lease payments is recognized on a straight-line basis over the lease term. The expense for finance leases includes both interest and amortization expense components, with the interest component calculated based on the effective interest method and the amortization component calculated based on straight-line amortization of the right-of-use asset over the lease term. Lease contracts may contain variable lease costs, such as common area maintenance, utilities and tax reimbursements that vary over the term of the contract. Variable lease costs are not included in minimum fixed lease payments and as a result, are excluded from the measurement of the right-of-use assets and lease liabilities. The Company expenses all variable lease costs as incurred.

Certain leased facilities are being partially or fully vacated as part of the 2022 Restructuring Plan and for some of those facilities, the Company has no plans to enter into sublease agreements. Accordingly, the Company accelerated the amortization of those lease assets through the planned cease-use date of each facility, resulting in additional amortization expense $0.4 million and $0.6 million, respectively, in the three and six months ended June 30, 2023. No such accelerated amortization was recorded in the three and six months ended June 30, 2024. The Company did not record estimated future variable lease costs in the three and six months ended June 30, 2024 or 2023 related to the 2022 Restructuring Plan.

All incremental accelerated amortization and accruals for estimated future variable costs are included in Restructuring and related expense in the Company's condensed consolidated statements of operations. At June 30, 2024 and December 31, 2023, the Company had accruals of $1.3 million and $1.5 million, respectively, for all future anticipated variable lease costs related to these facilities. The Company may incur additional future expense if it is unable to sublease other locations included in the Facilities Initiative.

The Company leases its corporate offices and other facilities under operating leases, which expire at various times through 2033.

The Company's right-of-use lease assets and lease liabilities at June 30, 2024 and December 31, 2023 were as follows (in thousands):

			Classification						June 30, 2024						December 31, 2023
Assets:
Operating lease assets			Operating lease right-of-use assets						$	33,901					$	39,783
Liabilities:
Current Operating			Operating lease liabilities						$	12,347					$	15,739
Non-Current Operating			Operating lease liabilities, net of current						34,858						38,711
Total Operating lease liabilities									$	47,205					$	54,450

The components of lease expense for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):

---

									Three months ended												Six months ended
									June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Operating lease cost*									$	4,107					$	4,737					$	8,306					$	9,497
Short-term lease cost									3,413						3,663						6,854						7,090
Variable lease costs (costs excluded from minimum fixed lease payments)**									828						904						1,683						1,706
Sublease income									(217)						(393)						(477)						(823)
Net lease cost									$	8,131					$	8,911					$	16,366					$	17,470

* No accelerated amortization was recorded in the three and six months ended June 30, 2024. Operating lease costs for the three and six months ended June 30, 2023 included $0.4 million and $0.6 million, respectively, of accelerated amortization for certain assets partially or fully vacated with no intent or ability to sublease.

** No variable lease costs were accrued in the three and six months ended June 30, 2024 or 2023 for future estimated variable expenses related to certain assets partially or fully vacated with no intent or ability to sublease.

Cash flows related to the Company's leases included in the measurement of operating lease liabilities were classified as operating cash flows and totaled $9.4 million and $9.6 million in the six months ended June 30, 2024 and 2023, respectively.

Other information related to the Company's leases as of June 30, 2024 and December 31, 2023 was as follows:

			June 30, 2024						December 31, 2023
Weighted average remaining lease term (years):
Operating leases			5.45						5.50
Weighted average discount rate:
Operating leases			7.15		%				6.34		%

Future minimum fixed lease payments under noncancelable leases at June 30, 2024 were as follows (in thousands):

			Operating
			leases
Remainder of 2024			$	9,118
2025			10,878
2026			9,121
2027			7,896
2028			6,440
2029 and beyond			13,153
Total lease payments			56,606
Less: interest			(9,401)
Present value of lease liabilities			$	47,205

The Company recorded income tax provisions of $4.9 million and $6.9 million in the six months ended June 30, 2024 and 2023, respectively. These amounts reflect the Company's estimates of the effective rates expected to be applicable for the respective full years, adjusted for any discrete events, which are recorded in the period in which they occur. These estimates are reevaluated each quarter based on the Company's estimated tax expense for the full fiscal year. The estimated effective tax rate includes the impact of valuation allowances in various jurisdictions. The Company intends to continue to maintain a

---

valuation allowance on its deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of the respective allowances.

Liabilities for Royalty Payments to the IIA

Prior to the Company's acquisition of ECI Telecom Group Ltd. ("ECI"), ECI had received research and development grants from the Office of the Innovation Authority of the Israeli Ministry of Economics (the "IIA"). The Company assumed ECI's contract with the IIA, which requires the Company to pay royalties to the IIA on proceeds from the sale of products which the Israeli government has supported by way of research and development grants. The royalties for grants prior to 2017 were calculated at the rates of 1.3% to 5.0% of the aggregated proceeds from the sale of such products developed at certain of the Company's R&D centers, up to an amount not exceeding 100% of such grants plus interest at LIBOR. Effective for grants approved in 2017 and subsequently, interest was calculated at the higher of LIBOR plus 1.5% to 2.75%. At June 30, 2024, the Company's maximum possible future royalties commitment, including $1.0 million of unpaid royalties accrued, was $19.6 million, including interest of $1.1 million, based on estimates of future product sales, grants received from the IIA not yet repaid, and management's estimation of products still to be sold.

Litigation

The Company is often a party to disputes and legal proceedings that it considers routine and incidental to its business, including those described below. The Company believes that it has meritorious defenses to the allegations made in the pending cases and intends to vigorously defend these lawsuits; however, the Company is unable currently to forecast the ultimate outcome of these or similar matters. Since it is difficult to predict the outcome of legal proceedings, it is possible that the ultimate outcomes could materially and adversely affect the Company’s business, financial position, results of operations or cash flows. Accordingly, with respect to these proceedings, the Company is currently unable to reasonably estimate the possible loss or range of possible loss.

Miller Complaint. On November 8, 2018, Ron Miller, a purported stockholder of the Company, filed a Class Action Complaint (the "Miller Complaint") in the United States District Court for the District of Massachusetts (the "Massachusetts District Court") against the Company and three of its former officers (collectively, the "Defendants"), claiming to represent a class of purchasers of Sonus common stock during the period from January 8, 2015 through March 24, 2015 and alleging violations of the federal securities laws. Similar to a previous complaint entitled Sousa et al. vs. Sonus Networks, Inc. et al., which was dismissed with prejudice by an order dated June 6, 2017, the Miller Complaint claims that the Defendants made misleading forward-looking statements concerning Sonus' expected fiscal first quarter of 2015 financial performance, which statements were also the subject of an August 7, 2018 Securities and Exchange Commission Cease and Desist Order, whose findings the Company neither admitted nor denied. The Miller plaintiffs are seeking monetary damages.

After the Miller Complaint was filed, several parties filed and briefed motions seeking to be selected by the Massachusetts District Court to serve as a Lead Plaintiff in the action. On June 21, 2019, the Massachusetts District Court appointed a group as Lead Plaintiffs and the Lead Plaintiffs filed an amended complaint on July 19, 2019. On August 30, 2019, the Defendants filed a motion to dismiss the Miller Complaint and, on October 4, 2019, the Lead Plaintiffs filed an opposition to the motion to dismiss. There was an oral argument on the motion to dismiss on February 12, 2020, and on October 20, 2022 the court denied the motion to dismiss. In June 2023, the Defendants agreed to a settlement in principle with the named plaintiffs, and final approval of the settlement was provided by the court on April 24, 2024. The settlement provided a release of all claims asserted

---

in the litigation to all Defendants, who continue to deny liability. The $4.5 million settlement amount was funded by the provider of the Company's Directors and Officers liability insurance policy.

Charter Complaint. On September 19, 2022, Charter Communications Operating, LLC (“Charter”) filed two complaints against two of our subsidiaries (Sonus Networks, Inc. and Ribbon Communications Operating Company, Inc.) alleging breach of contract with respect to indemnification obligations purportedly owed to Charter in connection with Charter’s legal dispute with Sprint Communications Company L.P., which was settled by Charter in March 2022. One complaint was filed in the Supreme Court of the State of New York, in New York County; the second complaint was filed by Charter as well as co-plaintiffs Charter Communications Holding Company, LLC and Bright House Networks, LLC, in the Superior Court of the State of Delaware in and for New Castle County. In both complaints, Charter is seeking monetary damages. The Company filed its answer to the first complaint file in New York on December 7, 2022 and to the second complaint filed in Delaware on January 9, 2023. Discovery is on-going and the court in the Delaware complaint has set a new trial date of June 2025.

WideOpenWest Complaint. On August 9, 2023, WideOpenWest, Inc. and WideOpenWest Finance, LLC (collectively, “WOW”) filed a complaint against Ribbon alleging breach of contract with respect to indemnification obligations purportedly owed to WOW in connection with WOW’s legal dispute with Sprint Communications Company L.P., which was settled by WOW in the second quarter of 2023. The complaint was filed in the 429th Judicial District of the District Court of the State of Texas, in Collin County, Texas and has since been transferred to the 493rd Judicial District Court in Collin County. In the complaint, WOW is seeking monetary damages. The Company filed its answer to the complaint on October 5, 2023. Discovery is on-going and the court has set a preliminary trial date of December 2024.

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v3.24.2

Cover - shares	6 Months Ended
	Jun. 30, 2024	Jul. 22, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-38267
Entity Registrant Name	RIBBON COMMUNICATIONS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-1669692
Entity Address, Address Line One	6500 Chase Oaks Boulevard, Suite 100,
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75023
City Area Code	978
Local Phone Number	614-8100
Title of 12(b) Security	Common Stock, par value $0.0001
Trading Symbol	RBBN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		174,526,596
Entity Central Index Key	0001708055
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

v3.24.2

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 64,558	$ 26,494
Restricted cash	2,850	136
Accounts receivable, net	210,954	268,421
Inventory	79,216	77,521
Other current assets	46,576	46,146
Total current assets	404,154	418,718
Property and equipment, net	40,824	41,820
Intangible assets, net	212,052	238,087
Goodwill	300,892	300,892
Deferred income taxes	78,067	69,761
Operating lease right-of-use assets	33,901	39,783
Other assets	35,562	35,092
Total assets	1,105,452	1,144,153
Current liabilities:
Current portion of term debt	3,500	35,102
Accounts payable	64,333	85,164
Accrued expenses and other	92,847	91,687
Operating lease liabilities	12,347	15,739
Deferred revenue	99,547	113,381
Total current liabilities	272,574	341,073
Long-term debt, net of current	333,979	197,482
Warrant liability	6,170	5,295
Preferred stock liability, $0.01 par value per share; 10,000,000 shares authorized, none issued and outstanding at June 30, 2024; 55,000 shares issued and outstanding at December 31, 2023 ($56,650 liquidation preference)	0	53,337
Operating lease liabilities, net of current	34,858	38,711
Deferred revenue, net of current	16,632	19,218
Deferred income taxes	5,616	5,616
Other long-term liabilities	30,601	30,658
Total liabilities	700,430	691,390
Commitments and contingencies (Note 19)
Stockholders' equity:
Common stock, $0.0001 par value per share; 240,000,000 shares authorized; 174,437,242 shares issued and outstanding at June 30, 2024; 172,083,667 shares issued and outstanding at December 31, 2023	17	17
Additional paid-in capital	1,964,304	1,958,909
Accumulated deficit	(1,567,127)	(1,519,950)
Accumulated other comprehensive income	7,828	13,787
Total stockholders' equity	405,022	452,763
Total liabilities and stockholders' equity	$ 1,105,452	$ 1,144,153

v3.24.2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	55,000
Preferred stock, shares outstanding (in shares)	0	55,000
Preferred stock, liquidation preference, value	$ 56,650	$ 56,650
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	240,000,000	240,000,000
Common stock, shares issued (in shares)	174,437,242	172,083,667
Common stock, shares outstanding (in shares)	174,437,242	172,083,667

v3.24.2

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue:
Total revenue	$ 192,620	$ 210,618	$ 372,284	$ 396,777
Cost of revenue:
Amortization of acquired technology	6,532	7,439	13,083	14,828
Total cost of revenue	94,753	109,148	182,462	213,905
Gross profit	97,867	101,470	189,822	182,872
Operating expenses:
Research and development	43,489	47,776	89,252	99,080
Sales and marketing	32,984	33,905	67,700	69,304
General and administrative	14,901	14,346	30,092	28,391
Amortization of acquired intangible assets	6,508	7,260	13,214	14,524
Acquisition-, disposal- and integration-related	0	498	0	2,140
Restructuring and related	1,920	4,307	4,985	11,244
Total operating expenses	99,802	108,092	205,243	224,683
Loss from operations	(1,935)	(6,622)	(15,421)	(41,811)
Interest expense, net	(3,879)	(6,766)	(9,866)	(13,188)
Other (expense) income, net	(9,503)	(2,688)	(17,016)	2,084
Loss before income taxes	(15,317)	(16,076)	(42,303)	(52,915)
Income tax provision	(1,499)	(5,403)	(4,874)	(6,869)
Net loss	$ (16,816)	$ (21,479)	$ (47,177)	$ (59,784)
Loss per share:
Basic (in dollars per share)	$ (0.10)	$ (0.13)	$ (0.27)	$ (0.35)
Diluted (in dollars per share)	$ (0.10)	$ (0.13)	$ (0.27)	$ (0.35)
Weighted average shares used to compute loss per share:
Basic (in shares)	173,793	170,103	173,110	169,326
Diluted (in shares)	173,793	170,103	173,110	169,326
Product
Revenue:
Total revenue	$ 99,133	$ 117,347	$ 186,743	$ 210,665
Cost of revenue:
Cost of revenue:	54,845	67,927	100,639	129,990
Service
Revenue:
Total revenue	93,487	93,271	185,541	186,112
Cost of revenue:
Cost of revenue:	$ 33,376	$ 33,782	$ 68,740	$ 69,087

v3.24.2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (16,816)	$ (21,479)	$ (47,177)	$ (59,784)
Other comprehensive income (loss), net of tax:
Unrealized loss on interest rate swap, net of reclassifications and amortization into earnings	(4,698)	(1,322)	(6,019)	(7,222)
Reclassification of gain to other income (expense), net upon sale of interest rate swap	0	0	0	(5,099)
Foreign currency translation adjustments	176	(434)	60	(585)
Other comprehensive loss, net of tax	(4,522)	(1,756)	(5,959)	(12,906)
Comprehensive loss, net of tax	$ (21,338)	$ (23,235)	$ (53,136)	$ (72,690)

v3.24.2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive (loss) income
Beginning balance (in shares) at Dec. 31, 2022		168,324,995
Beginning balance at Dec. 31, 2022	$ 518,427	$ 17	$ 1,941,569	$ (1,453,744)	$ 30,585
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		917
Exercise of stock options	2		2
Vesting of restricted stock awards and units (in shares)		3,314,572
Vesting of performance-based stock units (in shares)		381,071
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares)		(1,063,155)
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations	(3,456)		(3,456)
Stock-based compensation expense	11,964		11,964
Other comprehensive loss	(12,906)				(12,906)
Net loss	(59,784)			(59,784)
Ending balance (in shares) at Jun. 30, 2023		170,958,400
Ending balance at Jun. 30, 2023	454,247	$ 17	1,950,079	(1,513,528)	17,679
Beginning balance (in shares) at Mar. 31, 2023		169,229,979
Beginning balance at Mar. 31, 2023	472,928	$ 17	1,945,525	(1,492,049)	19,435
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		344
Exercise of stock options	1		1
Vesting of restricted stock awards and units (in shares)		2,294,295
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares)		(566,218)
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations	(1,563)		(1,563)
Stock-based compensation expense	6,116		6,116
Other comprehensive loss	(1,756)				(1,756)
Net loss	(21,479)			(21,479)
Ending balance (in shares) at Jun. 30, 2023		170,958,400
Ending balance at Jun. 30, 2023	$ 454,247	$ 17	1,950,079	(1,513,528)	17,679
Beginning balance (in shares) at Dec. 31, 2023	172,083,667	172,083,667
Beginning balance at Dec. 31, 2023	$ 452,763	$ 17	1,958,909	(1,519,950)	13,787
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		8,624
Exercise of stock options	17		17
Vesting of restricted stock awards and units (in shares)		3,027,037
Vesting of performance-based stock units (in shares)		288,672
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares)		(970,758)
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations	(2,638)		(2,638)
Stock-based compensation expense	8,016		8,016
Other comprehensive loss	(5,959)				(5,959)
Net loss	$ (47,177)			(47,177)
Ending balance (in shares) at Jun. 30, 2024	174,437,242	174,437,242
Ending balance at Jun. 30, 2024	$ 405,022	$ 17	1,964,304	(1,567,127)	7,828
Beginning balance (in shares) at Mar. 31, 2024		172,714,429
Beginning balance at Mar. 31, 2024	424,658	$ 17	1,962,602	(1,550,311)	12,350
Increase (Decrease) in Stockholders' Equity
Vesting of restricted stock awards and units (in shares)		2,138,848
Vesting of performance-based stock units (in shares)		257,390
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares)		(673,425)
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations	(1,792)		(1,792)
Stock-based compensation expense	3,494		3,494
Other comprehensive loss	(4,522)				(4,522)
Net loss	$ (16,816)			(16,816)
Ending balance (in shares) at Jun. 30, 2024	174,437,242	174,437,242
Ending balance at Jun. 30, 2024	$ 405,022	$ 17	$ 1,964,304	$ (1,567,127)	$ 7,828

v3.24.2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net loss	$ (47,177)	$ (59,784)
Adjustments to reconcile net loss to cash flows provided by operating activities:
Depreciation and amortization of property and equipment	6,770	7,059
Amortization of intangible assets	26,297	29,352
Amortization of debt issuance costs and original issue discount	3,445	1,793
Amortization of accumulated other comprehensive gain related to interest rate swap	(8,196)	(2,062)
Stock-based compensation	8,016	11,964
Deferred income taxes	(8,104)	(6,946)
Gain on sale of swap	0	(7,301)
Change in fair value of warrant liability	875	(1,318)
Reversal of fair value adjustments	8,091	1,456
Dividends accrued on preferred stock liability	2,743	1,272
Payment of dividends accrued on preferred stock liability	(6,686)	0
Foreign currency exchange losses (gains)	2,023	(1,080)
Changes in operating assets and liabilities:
Accounts receivable	56,146	21,534
Inventory	(4,405)	(2,221)
Other operating assets	8,854	13,486
Accounts payable	(20,541)	(1,740)
Accrued expenses and other long-term liabilities	(8,407)	2,343
Deferred revenue	(16,422)	767
Net cash provided by operating activities	3,322	8,574
Cash flows from investing activities:
Purchases of property and equipment	(5,613)	(4,091)
Purchases of software licenses	(263)	0
Net cash used in investing activities	(5,876)	(4,091)
Cash flows from financing activities:
Borrowings under revolving line of credit	44,106	30,000
Principal payments on revolving line of credit	(44,106)	(30,000)
Proceeds from issuance of term debt	342,300	0
Principal payments of term debt	(235,395)	(85,029)
Payment of debt issuance costs	(3,978)	(1,572)
Proceeds from issuance of preferred stock and warrant liabilities	0	53,350
Payment of preferred stock liability	(56,850)	0
Proceeds from the exercise of stock options	17	2
Payment of tax obligations related to vested stock awards and units	(2,638)	(3,456)
Net cash provided by (used in) financing activities	43,456	(36,705)
Effect of exchange rate changes on cash and cash equivalents	(124)	(394)
Net increase (decrease) in cash and cash equivalents	40,778	(32,616)
Cash, cash equivalents and restricted cash, beginning of year	26,630	67,262
Cash, cash equivalents and restricted cash, end of period	67,408	34,646
Supplemental disclosure of cash flow information:
Interest paid	12,222	11,617
Income taxes paid	9,664	6,945
Income tax refunds received	991	430
Supplemental disclosure of non-cash investing activities:
Capital expenditures incurred, but not yet paid	1,786	2,150
Inventory transfers to property and equipment	954	963
Supplemental disclosure of non-cash financing activities:
Fair value of vested restricted and performance-based stock grants	$ 9,095	$ 11,724

v3.24.2

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION Business Ribbon Communications Inc. ("Ribbon" or the "Company") is a leading global provider of communications technology to service providers and enterprises. The Company provides a broad range of software and high-performance hardware products, network solutions, and services that enable the secure delivery of data and voice communications, and high-bandwidth networking and connectivity for residential consumers and for small, medium, and large enterprises and industry verticals such as finance, education, government, utilities, and transportation. Ribbon's mission is to create a recognized global technology leader providing cloud-centric solutions that enable the secure exchange of information, with unparalleled scale, performance, and elasticity. The Company is headquartered in Plano, Texas, and has a global presence with research and development, or sales and support locations in over thirty countries around the world. Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring items, necessary for their fair presentation with accounting principles generally accepted in the United States of America ("GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Interim results are not necessarily indicative of results for a full year or any future interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as amended (the "Annual Report"), which was filed with the SEC on February 28, 2024. Operating Segments The Company's chief operating decision maker (the "CODM") is its president and chief executive officer. The CODM assesses the Company's performance based on the performance of two separate organizations within Ribbon: the Cloud and Edge segment ("Cloud and Edge") and the IP Optical Networks segment ("IP Optical Networks"). Significant Accounting Policies The Company's significant accounting policies are disclosed in Note 2 to the Consolidated Financial Statements included in the Annual Report. There were no material changes to the significant accounting policies during the six months ended June 30, 2024. Principles of Consolidation The condensed consolidated financial statements include the accounts of Ribbon and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Use of Estimates and Judgments The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon in preparing these condensed consolidated financial statements include revenue recognition for multiple element arrangements, inventory valuations, assumptions used to determine the fair value of stock-based compensation and the Preferred Stock and Warrants, intangible asset and goodwill valuations, including impairments, warranty accruals, legal contingencies and recoverability of Ribbon's net deferred tax assets and the related valuation allowances. Ribbon regularly assesses these estimates and records changes in estimates in the period in which they become known. Ribbon bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates. Restricted Cash The Company classifies as restricted cash all cash pledged as collateral to secure long-term obligations and all cash otherwise limited in use by contractual provisions. At June 30, 2024 and December 31, 2023, the Company had $2.9 million and $0.1 million of restricted cash, respectively, representing restricted short-term bank deposits pledged to secure certain guarantees and surety bonds as security for the Company's obligations under tenders, and contracts. Transfers of Financial Assets The Company's IP Optical Networks segment maintains customer receivables factoring agreements with a number of financial institutions. Under the terms of these agreements, the Company may transfer receivables to the financial institutions, on a non-recourse basis, provided that the financial institutions approve the receivables in advance. The Company maintains credit insurance policies from major insurance providers or obtains letters of credit from the customers for a majority of its factored trade receivables. The Company accounts for the factoring of its financial assets as a sale of the assets and records the factoring fees, when incurred, as a component of interest expense in the condensed consolidated statements of operations, and the proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows. Factoring of accounts receivable and associated fees for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Accounts receivable sold 25,970  27,266  46,962  48,327  Less factoring fees (543) (815) (934) (1,270) Net cash proceeds 25,427  26,451  46,028  47,057  Going Concern Assessment The accompanying condensed consolidated financial statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. In the Company's condensed consolidated financial statements for the period ended March 31, 2024, substantial doubt was raised about the Company's ability to continue as a going concern due to the lack of sufficient cash on hand or available liquidity to repay its obligations under the 2020 Credit Facility (as defined in Note 9) that was scheduled to mature on March 3, 2025. In response to these conditions, management's plans included refinancing the 2020 Credit Facility and the Company entered into a binding commitment letter for such refinancing on May 15, 2024. The refinancing contemplated by the binding commitment letter closed on June 21, 2024. See Note 9 for a description of the 2024 Senior Secured Credit Facilities Credit Agreement, the proceeds of which were used to, among other things, repay all amounts outstanding under the 2020 Credit Facility. As a result, there is no longer substantial doubt about the ability of the Company to continue as a going concern. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (the "FASB") issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which increases the disclosure requirements around rate reconciliation information and certain types of income taxes companies are required to pay. ASU 2023-09 will be effective for the Company beginning in 2025, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which improves reportable segment disclosure requirements, including enhancement of the disclosures of significant segment expenses and interim disclosure requirements, to enable investors to better understand an entity's overall performance and assess potential future cash flows. ASU 2023-07 will be effective for the Company annually beginning in 2024 and on an interim basis beginning in 2025, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's disclosure Update and Simplification Initiative (“ASU 2023-06”), which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. This ASU was issued in response to, and to align GAAP with, the SEC's August 2018 final rule that updates and simplifies disclosure requirements. The effective date for the Company for each amendment will be the date on which the SEC's removal of that related disclosure requirement becomes effective, with early adoption prohibited. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures. On February 1, 2023, the FASB staff noted that they believe that the Pillar 2 tax, established by the OECD and intended to apply for tax years beginning in 2024, would be an alternative minimum tax and therefore deferred tax assets would not need to be recognized related to this parallel taxing system. On February 2, 2023, the OECD issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar 2 global minimum tax. Under an additional transitional safe harbor released July 17, 2023, the undertaxed profits rule top-up tax will not be applied by any constituent entity's jurisdiction of residence with respect to income earned by a company's ultimate parent entity in its jurisdiction of residence, if the ultimate parent entity's jurisdiction has a corporate tax rate of at least 20%. This transition safe harbor will apply to fiscal years beginning on or before December 31, 2025 and ending before December 31, 2026. The Company is closely monitoring developments and evaluating the impacts these new rules will have on its tax rate, including eligibility to qualify for these safe harbor rules. Based upon preliminary calculations for calendar year 2024, the Company anticipates that it will meet the safe harbors in most jurisdictions, and any remaining top-up tax should be immaterial.

v3.24.2

EARNINGS (LOSS) PER SHARE	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. For periods in which the Company reports net income, diluted net earnings per share is determined by using the weighted average number of common and dilutive common equivalent shares outstanding during the period, unless the effect is antidilutive. The shares used to compute loss per share were as follows (in thousands):   Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Weighted average shares outstanding - basic 173,793  170,103  173,110  169,326  Potential dilutive common shares —  —  —  —  Weighted average shares outstanding - diluted 173,793  170,103  173,110  169,326  Options to purchase the Company's common stock and unvested restricted and performance-based stock units aggregating 11.9 million and 14.1 million shares were excluded from the computation of diluted loss per share for the three and six months ended June 30, 2024 and 2023, respectively, because their effect would have been antidilutive. On March 28, 2023, the Company issued 55,000 shares of newly designated Series A Preferred Stock (the "Preferred Stock") to investors in a private placement offering at a price of $970 per share, along with 4.9 million warrants (the "Warrants") to purchase shares of the Company's common stock, par value $0.0001 per share (the "Private Placement"), at the exercise price of $3.77 per share. The proceeds from the Private Placement were approximately $53.4 million, including approximately $10 million from existing related party stockholders (See Note 11). On June 25, 2024, the Company redeemed the Preferred Stock with a portion of the proceeds from the refinancing of the 2020 Credit Facility at a rate of 103% for a total of approximately $63.5 million. The Warrants remain outstanding and without modification. See Note 9 for a description of the refinancing of the 2020 Credit Facility. As of June 30, 2024 and 2023, the potential number of dilutive shares from the Warrants totaled 4.9 million shares. However, there was no impact on weighted average shares outstanding from these Warrants for the three and six months ended June 30, 2024 and 2023 as the average share price of the Company's common stock was below the exercise price of $3.77 per share and their effect would have been antidilutive. Dividends accrued on the Preferred Stock were not an adjustment to net income (loss) used for the calculation of diluted earnings (loss) per share as these dividends were included in the fair value adjustment of the Preferred Stock which was reflected in Other (expense) income, net until the redemption of the Preferred Stock on June 25, 2024.

v3.24.2

INVENTORY	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Inventory at June 30, 2024 and December 31, 2023 consisted of the following (in thousands):   June 30, 2024 December 31, 2023 On-hand final assemblies and finished goods inventories $ 97,266  $ 93,077  Deferred cost of goods sold 2,530  3,269  99,796  96,346  Less noncurrent portion (included in Other assets) (20,580) (18,825) Current portion $ 79,216  $ 77,521

v3.24.2

INTANGIBLE ASSETS AND GOODWILL	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS AND GOODWILL	INTANGIBLE ASSETS AND GOODWILL The Company's intangible assets at June 30, 2024 and December 31, 2023 consisted of the following (in thousands): June 30, 2024 Weighted average amortization period (years) Cost Accumulated amortization Net carrying value Developed technology 7.84 $ 340,380  $ 251,232  $ 89,148  Customer relationships 11.86 268,140  147,904  120,236  Trade names 3.88 5,000  4,954  46  Software licenses 3.00 5,698  3,076  2,622  9.50 $ 619,218  $ 407,166  $ 212,052  December 31, 2023 Weighted average amortization period (years) Cost Accumulated amortization Net carrying value Developed technology 7.84 $ 340,380  $ 239,066  $ 101,314  Customer relationships 11.86 268,140  134,743  133,397  Trade names 3.88 5,000  4,901  99  Software licenses 3.00 5,436  2,159  3,277  9.51 $ 618,956  $ 380,869  $ 238,087  Estimated future amortization expense for the Company's intangible assets at June 30, 2024 was as follows (in thousands): Years ending December 31, Remainder of 2024 $ 24,558  2025 44,176  2026 39,126  2027 33,969  2028 23,400  2029 18,379  Thereafter 28,444  $ 212,052  There were no changes to the carrying value of the Company's goodwill in the six months ended June 30, 2024 and 2023. The components of goodwill at both June 30, 2024 and 2023 were as follows (in thousands): Cloud and Edge IP Optical Networks Total   Goodwill $ 392,302  $ 191,996  $ 584,298    Accumulated impairment losses (167,406) (116,000) (283,406) $ 224,896  $ 75,996  $ 300,892

v3.24.2

FAIR VALUE HIERARCHY	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE HIERARCHY	FAIR VALUE HIERARCHY The carrying amounts of the Company's cash equivalents, accounts receivable, accounts payable and borrowings under a revolving credit facility in the condensed consolidated balance sheets approximates fair value due to the immediate or short-term nature of these financial instruments. Ribbon's term debt balance as of June 30, 2024 and December 31, 2023 of $350.0 million and $235.4 million, respectively, had a fair value of approximately $350.0 million and $235.1 million, respectively. Our Warrant liability had a fair value of $6.2 million and $5.3 million as of June 30, 2024 and December 31, 2023, respectively. Our Preferred Stock had a fair value of $53.3 million as of December 31, 2023 and was fully redeemed on June 25, 2024. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tier fair value hierarchy is based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1. Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. The Company had no assets or liabilities fair valued using Level 1 input at June 30, 2024 or December 31, 2023. Level 2. Level 2 applies to assets or liabilities for which there are inputs that are directly or indirectly observable in the marketplace, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). At December 31, 2023, the Company determined the fair value of its defined benefit plans' assets using Level 2 input. There were no significant changes to the Company's defined benefit plans' assets during the six months ended June 30, 2024 that required the calculation of their fair value as of June 30, 2024. Level 3. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Level 3 input was used to determine the fair value of the Company's Warrants at June 30, 2024 and the fair value of the Company's Preferred Stock and Warrants at December 31, 2023.

v3.24.2

ACCRUED EXPENSES AND OTHER	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER	ACCRUED EXPENSES AND OTHER Accrued expenses at June 30, 2024 and December 31, 2023 consisted of the following (in thousands):   June 30, 2024 December 31, 2023 Employee compensation and related costs $ 34,467  $ 33,682  Professional fees 22,007  19,702  Taxes payable 5,126  8,383  Other 31,247  29,920  $ 92,847  $ 91,687

v3.24.2

WARRANTY ACCRUALS	6 Months Ended
	Jun. 30, 2024
Guarantees and Product Warranties [Abstract]
WARRANTY ACCRUALS	WARRANTY ACCRUALS The changes in the Company's accrual balance in the six months ended June 30, 2024 were as follows (in thousands): Balance at January 1, 2024 $ 12,243  Current period provisions 2,824  Settlements (2,628) Balance at June 30, 2024 $ 12,439

v3.24.2

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES	6 Months Ended
	Jun. 30, 2024
Restructuring and Related Activities [Abstract]
RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES	RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES The Company recorded restructuring and related expense aggregating $1.9 million and $4.3 million in the three months ended June 30, 2024 and 2023, respectively and $5.0 million and $11.2 million in the six months ended June 30, 2024 and 2023, respectively. Restructuring and related expense includes restructuring expense (primarily severance and related costs), estimated future variable lease costs for vacated properties with no intent or ability of sublease, and accelerated rent amortization expense. For restructuring events that involve lease assets and liabilities, the Company applies lease reassessment and modification guidance and evaluates the right-of-use assets for potential impairment. If the Company plans to exit all or distinct portions of a facility and does not have the ability or intent to sublease, the Company will accelerate the amortization of each of those lease components through the vacate date. The accelerated amortization is recorded as a component of Restructuring and related expense in the Company's condensed consolidated statements of operations. Related variable lease expenses will continue to be expensed as incurred through the vacate date, at which time the Company will reassess the liability balance to ensure it appropriately reflects the remaining liability associated with the premises and record a liability for the estimated future variable lease costs. Accelerated amortization of lease assets is recognized from the date that the Company commences the plan to fully or partially vacate a facility, for which there is no intent or ability to enter into a sublease, through the final vacate date. Accelerated amortization of lease assets that are included as a component of restructuring and related expense are excluded from the restructuring accrual activity tables below, as the liability for lease payments for these facilities is included as a component of current and noncurrent Operating lease liabilities in the Company's condensed consolidated balance sheets at June 30, 2024 and December 31, 2023 (see Note 16). The Company may incur additional future expense if it is unable to sublease other locations included in the Company's facilities consolidation initiatives. Restructuring and related expense for the three and six months ended June 30, 2024 and 2023 was comprised of the following (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Severance and related costs $ 359  $ 2,843  $ 1,975  $ 8,551  Variable and other facilities-related costs 1,561  $ 1,125  3,010  2,131  Accelerated amortization of lease assets due to cease-use —  $ 339  —  562  $ 1,920  $ 4,307  $ 4,985  $ 11,244  2023 Restructuring Plan On February 22, 2023, the Company's Board of Directors approved a strategic restructuring program (the "2023 Restructuring Plan") to streamline the Company's operations in order to support the Company's investment in critical growth areas. The 2023 Restructuring Plan includes, among other things, charges related to a workforce reduction. Any potential positions eliminated in countries outside the United States are subject to local law and consultation requirements. In connection with the 2023 Restructuring Plan, the Company recorded restructuring and related expense of $0.4 million and $2.0 million in the three and six months ended June 30, 2024, respectively, consisting entirely of severance related costs. A summary of the 2023 Restructuring Plan accrual activity for the six months ended June 30, 2024 is as follows (in thousands): Balance at January 1, 2024 Initiatives charged to expense Cash payments Net transfer to operating lease accounts Balance at June 30, 2024 Severance $ 671  $ 1,975  $ (1,852) $ —  $ 794  2022 Restructuring Plan On February 14, 2022, the Company's Board of Directors approved a strategic restructuring program (the "2022 Restructuring Plan") to streamline the Company's operations in order to support the Company's investment in critical growth areas. The 2022 Restructuring Plan includes, among other things, charges related to a consolidation of facilities and a workforce reduction. Any positions eliminated in countries outside the United States are subject to local law and consultation requirements. The Company recorded restructuring and related expense of $1.6 million and $3.0 million in the three and six months ended June 30, 2024, respectively, in connection with the 2022 Restructuring Plan for variable and other facilities-related costs. A summary of the 2022 Restructuring Plan accrual activity for the six months ended June 30, 2024 is as follows (in thousands): Balance at January 1, 2024 Initiatives charged to expense Cash payments Balance at June 30, 2024 Variable and other facilities-related costs $ 468  3,010  (3,086) $ 392  Balance Sheet Classification The current portions of accrued restructuring were $1.1 million at both June 30, 2024 and December 31, 2023 and are included as components of Accrued expenses in the condensed consolidated balance sheets. The long-term portions of accrued restructuring are included as components of Other long-term liabilities in the condensed consolidated balance sheets. The long-term portions of accrued restructuring were $1.0 million and $1.1 million at June 30, 2024 and December 31, 2023, respectively.

v3.24.2

DEBT	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
DEBT	DEBT 2024 Credit Facility On June 21, 2024, the Company entered into a Senior Secured Credit Facilities Credit Agreement (the “2024 Credit Facility” and “2024 Credit Agreement”) as guarantor, with the Company’s wholly-owned subsidiary, Ribbon Communications Operating Company, Inc., as the borrower (the “Borrower”), HPS Investment Partners, LLC ("HPS"), as administrative agent, and HPS and WhiteHorse Capital Management, LLC ("WhiteHorse" and, together with HPS, the "Lenders"), pursuant to which the Lenders have provided the Company with a $385 million senior secured credit facility comprised of (i) a $350 million term loan (the “2024 Term Loan”) and (ii) a $35 million revolving credit facility (the “2024 Revolver”), including a $20 million sublimit for letters of credit. The proceeds received from the 2024 Term Loan were used to (a) repay 100% of the amounts outstanding under the 2020 Credit Facility, (b) redeem in full the Preferred Stock and (c) pay fees and expenses related to the 2024 Credit Facility. Any excess proceeds are expected to be used by the Company for working capital and other general corporate purposes. The 2024 Term Loan and the 2024 Revolver bear interest, at the Borrower's option, at either the Alternate Base Rate (“ABR”) or Term Secured Overnight Financing Rate ("SOFR") with an Applicable Margin for each (all as defined in the 2024 Credit Agreement). Margins for the first six months are 5.25% per annum for ABR Loans and 6.25% per annum for SOFR Loans. Thereafter, margins vary based on the Company’s Consolidated Net Leverage Ratio, ranging from 4.75% to 5.25% per annum for ABR Loans and 5.75% to 6.25% per annum for SOFR Loans. The 2024 Term Loan and the 2024 Revolver will both mature on June 21, 2029. The 2024 Term Loan is to be repaid in equal quarterly installments: approximately $0.9 million beginning with the third quarter of 2024 through the second quarter of 2025; approximately $2.2 million beginning with the third quarter of 2025 and ending with the second quarter of 2027; and approximately $4.4 million quarterly thereafter, with the remaining principal balance of approximately $298.4 million due on the maturity date of June 21, 2029. In connection with the establishment of the 2024 Credit Facility, $7.7 million of original issue discount was withheld by the Lenders and the Company incurred $6.1 million of debt issuance costs for a total of $13.8 million that is being amortized to Interest expense, net over the term of the agreement. The 2024 Credit Facility requires compliance with a Maximum Consolidated Net Leverage Ratio (the "Financial Covenant"), as defined in the 2024 Credit Facility and tested on a quarterly basis. The Company was in compliance with the Financial Covenant as of June 30, 2024. The indebtedness and other obligations under the 2024 Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by the Company and its subsidiaries (together, the "Guarantors"). The 2024 Credit Facility is secured on a first-priority basis by a lien on substantially all assets of the Borrower and the Guarantors. 2020 Credit Facility On June 21, 2024, the Company used the proceeds from the 2024 Credit Facility to, among other things, repay all amounts outstanding under its Senior Secured Credit Facilities Credit Agreement, dated March 3, 2020 (as amended, the "2020 Credit Facility"), by and among the Company, as a guarantor, Ribbon Communications Operating Company, Inc., as the borrower (the "Borrower"), Citizens Bank, N.A., Santander Bank, N.A., and others as lenders ("Lenders"). The Company wrote off $2.0 million of debt issuance costs in conjunction with the early extinguishment of the 2020 Credit Facility. The 2020 Credit Facility had a maturity date of March 2025 and originally provided for $500 million of commitments from the Lenders to the Borrower, comprised of $400 million in term loans (the "2020 Term Loan Facility") and a $100 million facility available for revolving loans (the "2020 Revolving Credit Facility"). Under the 2020 Revolving Credit Facility, a $30 million sublimit was originally available for letters of credit and a $20 million sublimit was available for swingline loans. The indebtedness and other obligations under the 2020 Credit Facility were unconditionally guaranteed on a senior secured basis by the Company, Edgewater Networks, Inc., a wholly-owned subsidiary of the Company, and GENBAND Inc., a wholly-owned subsidiary of the Company (together, the "Guarantors"). The 2020 Credit Facility was secured by first-priority liens on substantially all of the assets of the Borrower and the Guarantors, including substantially all of the assets of the Company. The 2020 Credit Facility required compliance with certain financial covenants, including a minimum Consolidated Fixed Charge Coverage Ratio and a maximum Consolidated Net Leverage Ratio (each as defined in the 2020 Credit Facility, and each tested on a quarterly basis). On March 24, 2023, the Company entered into the Sixth Amendment to the 2020 Credit Facility (the “Sixth Amendment”) effective March 30, 2023. The Sixth Amendment, among other things, increased the Maximum Consolidated Net Leverage Ratio (as defined in the 2020 Credit Facility), for the first, second and third quarters of 2023 to 4.50:1.00. In the fourth quarter of 2023 and the first quarter of 2024, the Maximum Consolidated Net Leverage Ratio declined to 4.25:1.00 and 4.00:1.00, respectively. Also, the Sixth Amendment reduced the minimum Consolidated Fixed Charge Coverage Ratio (as defined in the 2020 Credit Facility) to 1.10:1.00 through the first quarter of 2024. The Sixth Amendment reduced the maximum borrowings allowed under the 2020 Revolving Credit Facility from $100 million to $75 million and the sublimit available for letters of credit was reduced from $30 million to $20 million. In addition, the Sixth Amendment replaced LIBOR with SOFR as the alternative rate available to the Company for calculating interest owed under the 2020 Credit Facility with the margin fixed at 4.5%. In conjunction with the Sixth Amendment, the Company made a $75 million prepayment that was applied to the final payment due upon maturity in March 2025. The $75 million prepayment was almost entirely funded with the net proceeds from the Private Placement and the sales of our interest rate swap. Debt issuance costs associated with the Sixth Amendment totaled $1.7 million and were being amortized on a straight-line basis over the remaining life of the 2020 Credit Facility and were written off in conjunction with the early extinguishment of the 2020 Credit Facility on June 21, 2024. The Company's interest rates under the 2020 Term Loan for the six months ended June 30, 2023 benefited from a hedge instrument that was in place, specifically a fixed rate swap, which was sold in March 2023 (see Note 10). As a result of the fixed rate swap sold in March 2023, the ongoing interest rate was based upon U.S. dollar SOFR plus a fixed margin of 4.5%. The Company was in compliance with all covenants of the 2020 Credit Facility at December 31, 2023, including the current Consolidated Net Leverage Ratio calculation that considered the Company's debt to include Preferred Stock. The Company had the following outstanding borrowings, unamortized debt issuance costs and original issue discount, letters of credit, interest rates, and remaining borrowing capacity under the 2024 Credit Facility and the 2020 Credit Facility as of June 30, 2024 and December 31, 2023, respectively:   June 30, 2024 December 31, 2023 Current portion of Term Debt $ 3,500 $ 35,102 Long-term Debt, net of Current: Long-term Debt, net of Current (Face Amount) $ 346,500 $ 200,293 Original Issue Discount (6,961) — Unamortized Debt Issuance Costs - Contra-Liability (5,560) (2,811) Long-term Debt, net of Current $ 333,979 $ 197,482 Total Face Amount of Borrowings $ 350,000 $ 235,395 Unamortized Original Issue Discount and Debt Issuance Costs: Other Assets 1,238 557 Long-Term Debt - Contra Liability 12,521 2,811 Total Unamortized Original Issue Discount and Debt Issuance Costs $ 13,759 $ 3,368 Letters of Credit Outstanding $ — $ 2,711 Remaining Borrowing Capacity $ 35,000 $ 72,289 Average Interest Rates: Term Loan 11.6  % 10.0  % Letters of Credit —  % 4.5  % The Company's debt maturities as of June 30, 2024 were as follows: Years ending December 31, Remainder of 2024 $ 1,750  2025 6,125  2026 8,750  2027 13,125  2028 17,500  2029 302,750  $ 350,000  Letters of Credit and Other Guarantees The Company uses letters of credit, bank guarantees, and surety bonds in the course of its business. At June 30, 2024, the Company had $9.5 million of letters of credit, bank guarantees, and surety bonds outstanding (collectively, "Guarantees") under various uncommitted facilities and no letters of credit outstanding under the 2024 Credit Facility. At December 31, 2023, the Company had Guarantees aggregating $7.9 million, comprised of the $2.7 million of letters of credit under the 2020 Credit Facility described above and $5.2 million of Other Guarantees. At June 30, 2024 and December 31, 2023, the Company had cash collateral of $2.9 million and $0.1 million, respectively, supporting the Guarantees, which are reported in Restricted cash in the Company's condensed consolidated balance sheets.

v3.24.2

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to financial market risk related to foreign currency fluctuations and changes in interest rates. These exposures are actively monitored by management. To manage the volatility related to the exposure to changes in interest rates, the Company may enter into derivative financial instruments. Management's objective has been to reduce, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in interest rates. Ribbon's policies and practices are to use derivative financial instruments only to the extent necessary to manage exposures. Ribbon does not hold or issue derivative financial instruments for trading or speculative purposes. The Company records derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a specific risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge, or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk even though hedge accounting does not apply or the Company elects not to apply hedge accounting. Cash Flow Hedge of Interest Rate Risk The 2024 Term Loan Facility and the 2020 Term Loan Facility had outstanding balances of $350.0 million and $235.4 million at June 30, 2024 and December 31, 2023, respectively. The 2024 Revolving Credit Facility and the 2020 Revolving Credit Facility were undrawn at June 30, 2024 and December 31, 2023, respectively. Borrowings under the 2024 Credit Facility and the 2020 Credit Facility have variable interest rates based on SOFR (see Note 9). As a result of exposure to interest rate movements, during March 2020, the Company entered into an interest rate swap arrangement, which effectively converted its $400 million term loan with its variable interest rate based upon one-month LIBOR to an aggregate fixed rate of 0.904%, plus a leverage-based margin as defined in the 2020 Credit Facility. On July 22, 2022, the Company sold $30 million of the notional amount of its interest rate swap back to its counterparty for $1.5 million, reducing the notional amount of this swap to $370 million. On August 16, 2022 the Company sold another $30 million of the notional amount of its interest rate swap back to its counterparty for $1.6 million, reducing the notional amount to $340 million, which approximated the current level of our term loan debt then outstanding. The gain in accumulated other comprehensive (loss) income related to the $60 million notional amount sold of $3.1 million was being released into earnings on a straight line basis over the remaining term of the 2020 Credit Facility as a decrease to interest expense until it was refinanced on June 21, 2024, the amortization of which totaled $0.2 million and $0.4 million for the three and six months ended June 30, 2024, respectively, and $0.2 million and $0.5 million for the three and six months ended June 30, 2023, respectively. The remaining unamortized gain in accumulated other comprehensive (loss) income of approximately $0.5 million was written off to interest expense in conjunction with the refinancing of the 2020 Credit Facility on June 21, 2024. See Note 9 for a description of the refinancing. On March 24, 2023, the Company received $9.4 million, consisting of $0.4 million of interest and $9.0 million for the sale of $170 million of its $340 million notional amount interest rate swap back to its counterparty, reducing the notional amount to $170 million. On March 27, 2023, the Company received $9.8 million, consisting of $0.4 million of interest and $9.4 million for the sale of the remaining $170 million of its interest rate swap back to its counterparty. The portion of the gain in accumulated other comprehensive (loss) income related to the term loan debt prepaid on the date of the final sale of our swap totaled $7.3 million and was released into earnings immediately as Other expense, net. The portion of the gain in accumulated other comprehensive (loss) income related to our remaining term loan debt balance was $12.0 million and was being released into earnings on a straight line basis over the remaining term of the 2020 Credit Facility as a decrease to interest expense until it was refinanced on June 21, 2024, the amortization of which totaled $1.4 million and $3.0 million for the three and six months ended June 30, 2024, respectively, and $1.6 million for both the three and six months ended June 30, 2023. The remaining unamortized gain in accumulated other comprehensive (loss) income of $4.4 million was written off to interest expense in conjunction with the refinancing of the 2020 Credit Facility on June 21, 2024. See Note 9 for a description of the refinancing. The Company’s objectives in using interest rate derivatives have been to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has used an interest rate swap as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the related agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of designated derivatives that qualify as cash flow hedges is recorded in accumulated other comprehensive income in the condensed consolidated balance sheet and is subsequently reclassified into earnings in the period that the hedged forecasted transactions affect earnings. During the three and six months ended June 30, 2023, such a derivative was used to hedge the variable cash flows associated with the outstanding borrowings under the 2020 Credit Facility and the Company accounted for this derivative as an effective hedge until the final portion of the swap was sold on March 27, 2023. Any ineffective portion of the change in the fair value of the derivative would have been recognized directly in earnings. However, there was no hedge ineffectiveness recorded over the life of the swap. Amounts reported in accumulated other comprehensive income related to the Company's derivative are reclassified to interest expense as interest is accrued on the Company’s variable-rate debt. The impact of the Company’s derivative financial instrument on its condensed consolidated statements of comprehensive (loss) income for the three and six months ended June 30, 2024 and 2023 was as follows, net of tax (in thousands): Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Gain (loss) recognized in other comprehensive income (loss) on swap, net of tax $ —  $ —  $ —  $ (2,715) Amount reclassified from accumulated other comprehensive income to other expense, net upon sale of swap, net of tax —  —  —  (5,099) Amount reclassified from accumulated other comprehensive income to interest expense (4,698) (1,322) (6,019) (4,507) Unrealized gain (loss) on interest rate swap, net of reclassifications and amortization $ (4,698) $ (1,322) $ (6,019) $ (12,321) The Company had no derivative assets or liabilities at June 30, 2024 or December 31, 2023.

v3.24.2

PREFERRED STOCK AND WARRANTS	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
PREFERRED STOCK AND WARRANTS	PREFERRED STOCK AND WARRANTS On March 28, 2023, the Company issued 55,000 shares of Preferred Stock to investors in the Private Placement at a price of $970 per share, along with 4,858,090 Warrants with an exercise price of $3.77 per share. On June 25, 2024, the Company redeemed the Preferred Stock with a portion of the proceeds from the refinancing of the 2020 Credit Facility at a rate of 103% for a total of approximately $63.5 million. The Warrants remain outstanding and without modification. See Note 9 for a description of the refinancing of the 2020 Credit Facility. The Company accounted for the Preferred Stock until it was redeemed and continues to account for the Warrants as liability-classified instruments based on an assessment of their specific terms in accordance with ASC Topic 480, Distinguishing Liabilities from Equity. The fair value option was elected for the Preferred Stock, as the Company considered fair value to best reflect its expected future economic value. These liabilities are remeasured to fair value at each reporting date using the same valuation methodology applied upon issuance using current input assumptions. The value of the Preferred Stock was calculated quarterly through March 31, 2024 using the Black-Derman-Toy (BDT) stochastic yield lattice model to capture the optimal timing of repayment, increasing dividend rate and other features and the value of the Warrants is calculated quarterly using the Black-Scholes Pricing Model. Changes in the fair value of the Preferred Stock and the Warrants are reported as Other expense, net in the Company's condensed consolidated statements of operations. The Company determined the fair value of the Warrants using Level 3 input. The key assumptions into the model utilized was as follows as of June 30, 2024: Warrants (Black-Scholes) Stock price $3.29 Strike price $3.77 Risk-free rate 4.52% Volatility 61.5% Dividend yield 0.0% Time to expiration (years) 2.8 Fair value of Warrant per share $1.27 The changes in the Company's Preferred Stock and Warrant liabilities for the six months ended June 30, 2024 were as follows (in thousands): Preferred stock liability Balance at January 1, 2024 $ 53,337  Payable in-kind dividends 2,743  Reversal of fair value adjustments 5,605  Call premium (3%) 1,851  Redemption (June 25, 2024) $ (63,536) Balance at June 30, 2024 $ —  Warrant liability Balance at January 1, 2024 $ 5,295  Fair value change 875  Balance at June 30, 2024 $ 6,170  The Preferred Stock, redeemed on June 25, 2024, was subordinate to the Company's indebtedness and senior to the Company’s common stock or other equity. Holders of the Preferred Stock were entitled to cumulative dividends that accrued quarterly. Dividends were payable in-kind during the first year at a rate of 9.25%. At the Company’s option, the dividends were payable in-kind or in cash during the second year at a rate of 9.75%. Dividends thereafter were to be payable in cash at a rate of 12.00%. The proceeds from the Preferred Stock issuance were approximately $53.4 million, including $10.0 million from existing related party stockholders. Offering costs paid by the Company of approximately $3.5 million were recorded in Other expense, net in the year ended December 31, 2023. The net proceeds from the Private Placement were used for the repayment of debt. The Preferred Stock was redeemable on or after the first and second anniversaries of the closing date at a rate of 103% and 102%, respectively. The Warrants, which expire March 30, 2027, are immediately exercisable and upon an event such as a merger, consolidation, asset sale or similar change of control, may be exercised and the holders may vote the underlying shares of common stock. In connection with the Private Placement, the Company provided the investors with certain registration rights relating to the Preferred Stock, the Warrants and the shares of the Company’s common stock underlying the Warrants, that required the Company to file a registration statement on Form S-3 with the SEC within 30 days following the closing date of the Private Placement. The registration requirement was completed on May 19, 2023.

v3.24.2

REVENUE RECOGNITION	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION The Company derives revenue from two primary sources: products and services. Product revenue includes the Company's hardware and software that function together to deliver the products' essential functionality. Software and hardware are also sold on a standalone basis. Services include customer support (software updates, upgrades and technical support), consulting, design services, installation services and training. Generally, contracts with customers contain multiple performance obligations, consisting of products and services. For these contracts, the Company accounts for individual performance obligations separately if they are considered distinct. When an arrangement contains more than one performance obligation, the Company will allocate the transaction price to each performance obligation on a relative standalone selling price basis. The Company utilizes the observable price of goods and services when they are sold separately to similar customers in order to estimate standalone selling price. The Company's software licenses typically provide a perpetual right to use the Company's software. The Company also sells term-based software licenses that expire and Software-as-a-Service ("SaaS")-based software which are referred to as subscription arrangements. The Company does not customize its software nor are installation services required, as the customer has a right to utilize internal resources or a third-party service company. The software and hardware are delivered before related services are provided and are functional without professional services or customer support. The Company has concluded that its software licenses are functional intellectual property that are distinct, as the user can benefit from the software on its own. Product revenue is typically recognized upon transfer of control or when the software is made available for download, as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from, the functional intellectual property. The Company begins to recognize software revenue related to the renewal of subscription software licenses at the start of the subscription period. The Company offers warranties on its products. Certain of the Company's warranties are considered to be assurance-type in nature, ensuring the product is functioning as intended. Assurance-type warranties do not represent separate performance obligations. The Company also sells separately-priced maintenance service contracts which qualify as service-type warranties and represent separate performance obligations. The Company does not allow and has no history of accepting product returns. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts at a percentage of list or net product price. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. The Company's professional services include consulting, technical support, resident engineer services, design services and installation services. Because control transfers over time, revenue is recognized based on progress toward completion of the performance obligation. The method to measure progress toward completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the input method to measure progress for its contracts because it believes such method best depicts the transfer of assets to the customer, which occurs as the Company incurs costs for the contracts. However, in some instances, the Company uses the output method because it best depicts the transfer of asset to the customer. Under the cost-to-cost measure of progress, the progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. When the measure of progress is based upon expended labor, progress toward completion is measured as the ratio of labor time expended to date versus the total estimated labor time required to complete the performance obligation. Revenue is recorded proportionally as costs are incurred or as labor is expended. Costs to fulfill these obligations include internal labor as well as subcontractor costs. Customer training includes courses offered by the Company. The related revenue is typically recognized as the training services are performed. The Company's typical performance obligations include the following: Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due Software and Product Revenue Software licenses (perpetual or term) Upon transfer of control; typically, when made available for download (point in time) Generally, within 30 days of invoicing except for term licenses, which may be paid for over time Software licenses (subscription) Upon activation of hosted site (over time) Generally, within 30 days of invoicing Hardware When control of the hardware passes to the customer; typically, upon delivery (point in time) Generally, within 30 days of invoicing Software upgrades Upon transfer of control; typically, when made available for download (point in time) Generally, within 30 days of invoicing Customer Support Revenue Customer support Ratably over the course of the support contract (over time) Generally, within 30 days of invoicing Professional Services Other professional services (excluding training services) As work is performed (over time) Generally, within 30 days of invoicing (upon completion of services) Training When the class is taught (point in time) Generally, within 30 days of services being performed Significant Judgments The Company's contracts with customers often include promises to transfer multiple products and services to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine the standalone selling price ("SSP") for each distinct performance obligation. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, the Company may use information such as the size of the customer and geographic region in determining the SSP. Deferred Revenue Deferred revenue is a contract liability representing amounts collected from or invoiced to customers in excess of revenue recognized. This results primarily from the billing of annual customer support agreements where the revenue is recognized over the term of the agreement. The value of deferred revenue will increase or decrease based on the timing of recognition of revenue. Disaggregation of Revenue The Company disaggregates its revenue from contracts with customers based on the nature of the products and services and the geographic regions in which each customer is domiciled. The Company's revenue for the three and six months ended June 30, 2024 and 2023 was disaggregated as follows: Three months ended June 30, 2024 Product revenue Service revenue (maintenance) Service revenue (professional services) Total revenue United States $ 35,368  $ 32,639  $ 13,462  $ 81,469  Europe, Middle East and Africa 33,239  17,491  8,188  58,918  Asia Pacific 26,081  9,759  2,597  38,437  Other 4,445  7,631  1,720  13,796  $ 99,133  $ 67,520  $ 25,967  $ 192,620  Three months ended June 30, 2023 Product revenue Service revenue (maintenance) Service revenue (professional services) Total revenue United States $ 53,545  $ 33,890  $ 11,842  $ 99,277  Europe, Middle East and Africa 28,831  17,998  7,679  54,508  Asia Pacific 31,810  10,164  2,269  44,243  Other 3,161  7,576  1,853  12,590  $ 117,347  $ 69,628  $ 23,643  $ 210,618  Six months ended June 30, 2024 Product revenue Service revenue (maintenance) Service revenue (professional services) Total revenue United States $ 61,975  $ 65,486  $ 25,122  $ 152,583  Europe, Middle East and Africa 74,928  35,187  15,886  126,001  Asia Pacific 42,714  20,000  5,524  68,238  Other 7,126  15,228  3,108  25,462  $ 186,743  $ 135,901  $ 49,640  $ 372,284  Six months ended June 30, 2023 Product revenue Service revenue (maintenance) Service revenue (professional services) Total revenue United States $ 91,612  $ 66,963  $ 22,695  $ 181,270  Europe, Middle East and Africa 56,266  38,125  14,254  108,645  Asia Pacific 57,425  19,536  5,413  82,374  Other 5,362  15,592  3,534  24,488  $ 210,665  $ 140,216  $ 45,896  $ 396,777  The Company's product revenue from indirect sales through its channel partner program and from its direct sales program for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Indirect sales through channel partner program $ 31,282  $ 37,590  $ 76,957  $ 73,504  Direct sales 67,851  79,757  109,786  137,161  $ 99,133  $ 117,347  $ 186,743  $ 210,665  The Company's product revenue from sales to enterprise customers and from sales to service provider customers for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Sales to enterprise customers $ 38,040  $ 37,707  $ 75,910  $ 65,119  Sales to service provider customers 61,093  79,640  110,833  145,546  $ 99,133  $ 117,347  $ 186,743  $ 210,665  The Company's product revenue and service revenue components by segment for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Product revenue:   Cloud and Edge $ 39,586  $ 52,352  $ 71,099  $ 95,191    IP Optical Networks 59,547  64,995  115,644  115,474      Total product revenue $ 99,133  $ 117,347  $ 186,743  $ 210,665  Service revenue:   Maintenance:     Cloud and Edge $ 52,663  $ 55,034  $ 105,859  $ 109,844      IP Optical Networks 14,857  14,594  30,042  30,372        Total maintenance revenue 67,520  69,628  135,901  140,216    Professional services:     Cloud and Edge 18,306  17,870  35,266  34,701      IP Optical Networks 7,661  5,773  14,374  11,195        Total professional services revenue 25,967  23,643  49,640  45,896          Total service revenue $ 93,487  $ 93,271  $ 185,541  $ 186,112  Revenue Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable; unbilled receivables, which are contract assets; and customer advances and deposits, which are contract liabilities, in the Company's condensed consolidated balance sheets. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Completion of services and billing may occur subsequent to revenue recognition, resulting in contract assets. The Company may receive advances or deposits from its customers before revenue is recognized, resulting in contract liabilities that are classified as deferred revenue. These assets and liabilities are reported in the Company's condensed consolidated balance sheets on a contract-by-contract basis as of the end of each reporting period. Changes in the contract asset and liability balances during the six months ended June 30, 2024 were not materially impacted by any factors other than billing and revenue recognition. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts. Unbilled receivables stem primarily from engagements where services have been performed; however, billing cannot occur until services are completed. In some arrangements, the Company allows customers to pay for term-based software licenses and products over the term of the software license. The Company also sells SaaS-based software under subscription arrangements, with payment terms over the term of the SaaS agreement. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables that are anticipated to be invoiced in the next twelve months are included in Accounts receivable on the Company's condensed consolidated balance sheets. The changes in the Company's accounts receivable, unbilled receivables and deferred revenue balances for the six months ended June 30, 2024 were as follows (in thousands): Accounts receivable Unbilled accounts receivable Deferred revenue (current) Deferred revenue (long-term) Balance at January 1, 2024 $ 186,938  $ 81,483  $ 113,381  $ 19,218  Increase (decrease), net (42,102) (15,365) (13,834) (2,586) Balance at June 30, 2024 $ 144,836  $ 66,118  $ 99,547  $ 16,632  The Company recognized approximately $78 million of revenue in the six months ended June 30, 2024 that was recorded as deferred revenue at December 31, 2023 and approximately $71 million of revenue in the six months ended June 30, 2023 that was recorded as deferred revenue at December 31, 2022. Of the Company's deferred revenue reported as long-term in its condensed consolidated balance sheet at June 30, 2024, the Company expects that approximately $6 million will be recognized as revenue in 2025, approximately $6 million will be recognized as revenue in 2026 and approximately $5 million will be recognized as revenue in 2027 and beyond. All freight-related customer invoicing is recorded as revenue, while the shipping and handling costs that occur after control of the promised goods or services transfer to the customer are reported as fulfillment costs, a component of Cost of revenue - product in the Company's condensed consolidated statements of operations. Deferred Commissions Cost Sales commissions earned by the Company's employees are considered incremental and recoverable costs of obtaining a contract with a customer. These costs have been deferred on our condensed consolidated balance sheet and are being amortized over the expected life of the customer contract, which is generally five years. At both June 30, 2024 and December 31, 2023, the Company had $3 million of deferred sales commissions capitalized.

v3.24.2

OPERATING SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
OPERATING SEGMENT INFORMATION	OPERATING SEGMENT INFORMATION The Company has two reportable segments, which are intended to align with the manner in which the business is managed: Cloud and Edge, and IP Optical Networks. The Cloud and Edge segment provides secure and reliable software and hardware products, solutions and services for enabling Voice over Internet Protocol ("VoIP") communications, Voice over Long-Term Evolution ("VoLTE") and Voice Over 5G ("VoNR") communications, and Unified Communications and Collaboration ("UC&C") within service provider and enterprise networks and from the cloud. The Cloud and Edge products are increasingly software-centric and cloud-native for deployment on private, public or hybrid cloud infrastructures, in data centers, on enterprise premises and within service provider networks. Ribbon's Cloud and Edge product portfolio consists primarily of its Session Border Controller ("SBC") products and its Network Transformation products. The IP Optical Networks segment provides high-performance, secure solutions for IP networking and optical transport, supporting wireless networks including 5G, metro and edge aggregation, core networking, data center interconnect, legacy transformation and transport solutions for wholesale carriers. This portfolio is offered to service provider, enterprise and industry verticals with critical transport network infrastructures including utilities, government, defense, transportation, and education and research. The Company has not provided segment asset information as such information is not provided to the CODM and accordingly, asset information is not used in assessing segment performance. Segment revenue and expenses included in the tables below represent direct revenue and expense attributable to each segment. Please see Note 4 for information regarding the allocation of goodwill between segments. The CODM utilizes revenue and adjusted gross profit to measure and assess each segment's performance. The Company calculates adjusted gross profit by excluding from cost of revenue: amortization of acquired technology, stock-based compensation, and may also exclude other items in future periods that the Company believes are not part of the Company's core business. Adjusted gross profit is not a financial measure determined in accordance with U.S. GAAP, may not be comparable to similarly titled measures used by other companies, and should not be considered a substitute for gross profit or other results reported in accordance with U.S. GAAP. See below for a reconciliation of adjusted gross profit to gross profit which is the most directly comparable U.S. GAAP measure. The tables below provide revenue, adjusted gross profit and depreciation expense by reportable segment for the three and six months ended June 30, 2024 and 2023 (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Segment revenue:   Cloud and Edge $ 110,555  $ 125,256  $ 212,224  $ 239,736    IP Optical Networks 82,065  85,362  160,060  157,041      Revenue $ 192,620  $ 210,618  $ 372,284  $ 396,777  Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Segment adjusted gross profit:   Cloud and Edge $ 72,946  $ 83,299  $ 140,065  $ 153,274    IP Optical Networks 31,791  26,251  63,756  45,751      Total segment adjusted gross profit 104,737  109,550  203,821  199,025  Stock-based compensation expense (338) (641) (916) (1,325) Amortization of acquired technology (6,532) (7,439) (13,083) (14,828)       Gross profit $ 97,867  $ 101,470  $ 189,822  $ 182,872  Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Segment depreciation expense:   Cloud and Edge $ 2,324  $ 2,477  $ 4,657  $ 4,976    IP Optical Networks 1,052  1,072  2,113  2,083      Depreciation expense $ 3,376  $ 3,549  $ 6,770  $ 7,059

v3.24.2

MAJOR CUSTOMERS	6 Months Ended
	Jun. 30, 2024
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS	MAJOR CUSTOMERS The following customer contributed 10% or more of the Company's revenue in the three and six months ended June 30, 2024 and 2023:   Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Verizon Communications Inc. 12% 11% 11% 11% At June 30, 2024 and December 31, 2023, no customer accounted for 10% or more of the Company's accounts receivable balance. The Company performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts and such losses have historically been within management's expectations.

v3.24.2

STOCK-BASED COMPENSATION PLANS	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION PLANS	STOCK-BASED COMPENSATION PLANS The Company grants stock-based compensation to employees, officers and non-employee directors, as well as consultants and advisors of the Company and its subsidiaries under its Amended and Restated 2019 Incentive Award Plan which provides for the award of stock options, stock appreciation rights, restricted stock awards ("RSAs"), performance-based stock awards, restricted stock units ("RSUs"), performance-based stock units ("PSUs") and other stock- or cash-based awards. Executive Equity Arrangements Inducement Awards In connection with his appointment as President and Chief Executive Officer of Ribbon on March 16, 2020, the Company awarded Bruce McClelland sign-on equity grants, comprised of RSUs and a PSU grant with both market and service conditions. As of June 30, 2024, the Company estimates that the market conditions surrounding the PSUs granted will not be met by the expiration date of September 1, 2024. Performance-Based Stock Grants In addition to granting RSAs and RSUs to its executives and certain of its employees, the Company also grants PSUs to certain of its executives and certain other employees. Vesting periods for RSAs, RSUs, and PSUs granted range from one to three years. PSUs granted consist of 60% that have both performance and service conditions (the "Performance PSUs") and 40% that have both market and service conditions (the "Market PSUs"). Each Performance PSU is comprised of three consecutive fiscal year performance periods beginning in the year of grant, with one-third of the Performance PSUs attributable to each fiscal year performance period. The Market PSUs have one three-year performance period, beginning January 1 in the year of grant and ending on December 31, three years thereafter. The number of shares of common stock underlying the PSUs that can be earned will not exceed 200% of the Performance or Market PSUs. Shares subject to PSUs that fail to be earned will be forfeited. Restricted Stock Units The activity related to the Company's RSUs for the six months ended June 30, 2024 was as follows: Shares Weighted Average Grant Date Fair Value Unvested balance at January 1, 2024 7,091,368  $ 3.18  Granted 1,374,541  $ 3.22  Vested (3,027,037) $ 3.54  Forfeited (294,994) $ 3.21  Unvested balance at June 30, 2024 5,143,878  $ 2.98  The total grant date fair value of shares of restricted stock underlying RSUs that vested during the six months ended June 30, 2024 was $10.7 million. Performance-Based Stock Units The activity related to the Company's PSUs for the six months ended June 30, 2024 was as follows: Shares Weighted Average Grant Date Fair Value Unvested balance at January 1, 2024 6,297,931  $ 2.07  Granted 1,338,985  $ 4.32  Vested (288,672) $ 3.14  Forfeited (619,168) $ 5.82  Unvested balance at June 30, 2024 6,729,076  $ 2.13  The total grant date fair value of shares of restricted stock underlying PSUs that vested during the six months ended June 30, 2024 was $0.9 million. Stock-Based Compensation The condensed consolidated statements of operations include stock-based compensation for the three and six months ended June 30, 2024 and 2023 as follows (in thousands):   Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Product cost of revenue $ 64  $ 115  $ 170  $ 264  Service cost of revenue 274  526  746  1,061  Research and development 616  1,300  1,684  2,562  Sales and marketing 954  2,142  2,111  4,271  General and administrative 1,586  2,033  3,305  3,806  $ 3,494  $ 6,116  $ 8,016  $ 11,964  At June 30, 2024, there was $19.0 million, net of expected forfeitures, of unrecognized stock-based compensation expense related to unvested RSUs and PSUs. This expense is expected to be recognized over a weighted average period of approximately one year.

v3.24.2

LEASES	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
LEASES	LEASES The Company has operating leases for corporate offices and research and development facilities and has historically had finance leases for certain equipment. Operating leases are reported separately in the Company's condensed consolidated balance sheets. Assets acquired under finance leases, if any, are included in Property and equipment, net, in the condensed consolidated balance sheets. The Company determines if an arrangement is a lease at inception. A contract is determined to contain a lease component if the arrangement provides the Company with a right to control the use of an identified asset. Lease agreements may include lease and non-lease components. In such instances for all classes of underlying assets, the Company does not separate lease and non-lease components but rather, accounts for the entire arrangement under leasing guidance. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized on a straight-line basis over the lease term. Right-of-use assets and lease liabilities are initially measured based on the present value of the future minimum fixed lease payments (i.e., fixed payments in the lease contract) over the lease term at the commencement date. As the Company's existing leases do not have a readily determinable implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future minimum fixed lease payments. The Company calculates its incremental borrowing rate to reflect the interest rate that it would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term and considers its historical borrowing activities and market data from entities with comparable credit ratings in this determination. The measurement of the right-of-use asset also includes any lease payments made prior to the commencement date (excluding any lease incentives) and initial direct costs incurred. The Company assessed its right-of-use assets for impairment as of June 30, 2024 and December 31, 2023 and determined no impairment has occurred. Lease terms may include options to extend or terminate the lease and the Company incorporates such options in the lease term when it has the unilateral right to make such an election and it is reasonably certain that the Company will exercise that option. In making this determination, the Company considers its prior renewal and termination history and planned usage of the assets under lease, incorporating expected market conditions. For operating leases, lease expense for minimum fixed lease payments is recognized on a straight-line basis over the lease term. The expense for finance leases includes both interest and amortization expense components, with the interest component calculated based on the effective interest method and the amortization component calculated based on straight-line amortization of the right-of-use asset over the lease term. Lease contracts may contain variable lease costs, such as common area maintenance, utilities and tax reimbursements that vary over the term of the contract. Variable lease costs are not included in minimum fixed lease payments and as a result, are excluded from the measurement of the right-of-use assets and lease liabilities. The Company expenses all variable lease costs as incurred. Certain leased facilities are being partially or fully vacated as part of the 2022 Restructuring Plan and for some of those facilities, the Company has no plans to enter into sublease agreements. Accordingly, the Company accelerated the amortization of those lease assets through the planned cease-use date of each facility, resulting in additional amortization expense $0.4 million and $0.6 million, respectively, in the three and six months ended June 30, 2023. No such accelerated amortization was recorded in the three and six months ended June 30, 2024. The Company did not record estimated future variable lease costs in the three and six months ended June 30, 2024 or 2023 related to the 2022 Restructuring Plan. All incremental accelerated amortization and accruals for estimated future variable costs are included in Restructuring and related expense in the Company's condensed consolidated statements of operations. At June 30, 2024 and December 31, 2023, the Company had accruals of $1.3 million and $1.5 million, respectively, for all future anticipated variable lease costs related to these facilities. The Company may incur additional future expense if it is unable to sublease other locations included in the Facilities Initiative. The Company leases its corporate offices and other facilities under operating leases, which expire at various times through 2033. The Company's right-of-use lease assets and lease liabilities at June 30, 2024 and December 31, 2023 were as follows (in thousands): Classification June 30, 2024 December 31, 2023 Assets:   Operating lease assets Operating lease right-of-use assets $ 33,901  $ 39,783  Liabilities:     Current Operating Operating lease liabilities $ 12,347  $ 15,739      Non-Current Operating Operating lease liabilities, net of current 34,858  38,711        Total Operating lease liabilities $ 47,205  $ 54,450  The components of lease expense for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):   Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Operating lease cost* $ 4,107  $ 4,737  $ 8,306  $ 9,497  Short-term lease cost 3,413  3,663  6,854  7,090  Variable lease costs (costs excluded from minimum fixed lease payments)** 828  904  1,683  1,706  Sublease income (217) (393) (477) (823)     Net lease cost $ 8,131  $ 8,911  $ 16,366  $ 17,470  * No accelerated amortization was recorded in the three and six months ended June 30, 2024. Operating lease costs for the three and six months ended June 30, 2023 included $0.4 million and $0.6 million, respectively, of accelerated amortization for certain assets partially or fully vacated with no intent or ability to sublease. ** No variable lease costs were accrued in the three and six months ended June 30, 2024 or 2023 for future estimated variable expenses related to certain assets partially or fully vacated with no intent or ability to sublease. Cash flows related to the Company's leases included in the measurement of operating lease liabilities were classified as operating cash flows and totaled $9.4 million and $9.6 million in the six months ended June 30, 2024 and 2023, respectively. Other information related to the Company's leases as of June 30, 2024 and December 31, 2023 was as follows:   June 30, 2024 December 31, 2023 Weighted average remaining lease term (years):   Operating leases 5.45 5.50 Weighted average discount rate:   Operating leases 7.15  % 6.34  % Future minimum fixed lease payments under noncancelable leases at June 30, 2024 were as follows (in thousands):   Operating leases Remainder of 2024 $ 9,118  2025 10,878  2026 9,121  2027 7,896  2028 6,440  2029 and beyond 13,153    Total lease payments 56,606    Less: interest (9,401)     Present value of lease liabilities $ 47,205
LEASES	LEASES The Company has operating leases for corporate offices and research and development facilities and has historically had finance leases for certain equipment. Operating leases are reported separately in the Company's condensed consolidated balance sheets. Assets acquired under finance leases, if any, are included in Property and equipment, net, in the condensed consolidated balance sheets. The Company determines if an arrangement is a lease at inception. A contract is determined to contain a lease component if the arrangement provides the Company with a right to control the use of an identified asset. Lease agreements may include lease and non-lease components. In such instances for all classes of underlying assets, the Company does not separate lease and non-lease components but rather, accounts for the entire arrangement under leasing guidance. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized on a straight-line basis over the lease term. Right-of-use assets and lease liabilities are initially measured based on the present value of the future minimum fixed lease payments (i.e., fixed payments in the lease contract) over the lease term at the commencement date. As the Company's existing leases do not have a readily determinable implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future minimum fixed lease payments. The Company calculates its incremental borrowing rate to reflect the interest rate that it would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term and considers its historical borrowing activities and market data from entities with comparable credit ratings in this determination. The measurement of the right-of-use asset also includes any lease payments made prior to the commencement date (excluding any lease incentives) and initial direct costs incurred. The Company assessed its right-of-use assets for impairment as of June 30, 2024 and December 31, 2023 and determined no impairment has occurred. Lease terms may include options to extend or terminate the lease and the Company incorporates such options in the lease term when it has the unilateral right to make such an election and it is reasonably certain that the Company will exercise that option. In making this determination, the Company considers its prior renewal and termination history and planned usage of the assets under lease, incorporating expected market conditions. For operating leases, lease expense for minimum fixed lease payments is recognized on a straight-line basis over the lease term. The expense for finance leases includes both interest and amortization expense components, with the interest component calculated based on the effective interest method and the amortization component calculated based on straight-line amortization of the right-of-use asset over the lease term. Lease contracts may contain variable lease costs, such as common area maintenance, utilities and tax reimbursements that vary over the term of the contract. Variable lease costs are not included in minimum fixed lease payments and as a result, are excluded from the measurement of the right-of-use assets and lease liabilities. The Company expenses all variable lease costs as incurred. Certain leased facilities are being partially or fully vacated as part of the 2022 Restructuring Plan and for some of those facilities, the Company has no plans to enter into sublease agreements. Accordingly, the Company accelerated the amortization of those lease assets through the planned cease-use date of each facility, resulting in additional amortization expense $0.4 million and $0.6 million, respectively, in the three and six months ended June 30, 2023. No such accelerated amortization was recorded in the three and six months ended June 30, 2024. The Company did not record estimated future variable lease costs in the three and six months ended June 30, 2024 or 2023 related to the 2022 Restructuring Plan. All incremental accelerated amortization and accruals for estimated future variable costs are included in Restructuring and related expense in the Company's condensed consolidated statements of operations. At June 30, 2024 and December 31, 2023, the Company had accruals of $1.3 million and $1.5 million, respectively, for all future anticipated variable lease costs related to these facilities. The Company may incur additional future expense if it is unable to sublease other locations included in the Facilities Initiative. The Company leases its corporate offices and other facilities under operating leases, which expire at various times through 2033. The Company's right-of-use lease assets and lease liabilities at June 30, 2024 and December 31, 2023 were as follows (in thousands): Classification June 30, 2024 December 31, 2023 Assets:   Operating lease assets Operating lease right-of-use assets $ 33,901  $ 39,783  Liabilities:     Current Operating Operating lease liabilities $ 12,347  $ 15,739      Non-Current Operating Operating lease liabilities, net of current 34,858  38,711        Total Operating lease liabilities $ 47,205  $ 54,450  The components of lease expense for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):   Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Operating lease cost* $ 4,107  $ 4,737  $ 8,306  $ 9,497  Short-term lease cost 3,413  3,663  6,854  7,090  Variable lease costs (costs excluded from minimum fixed lease payments)** 828  904  1,683  1,706  Sublease income (217) (393) (477) (823)     Net lease cost $ 8,131  $ 8,911  $ 16,366  $ 17,470  * No accelerated amortization was recorded in the three and six months ended June 30, 2024. Operating lease costs for the three and six months ended June 30, 2023 included $0.4 million and $0.6 million, respectively, of accelerated amortization for certain assets partially or fully vacated with no intent or ability to sublease. ** No variable lease costs were accrued in the three and six months ended June 30, 2024 or 2023 for future estimated variable expenses related to certain assets partially or fully vacated with no intent or ability to sublease. Cash flows related to the Company's leases included in the measurement of operating lease liabilities were classified as operating cash flows and totaled $9.4 million and $9.6 million in the six months ended June 30, 2024 and 2023, respectively. Other information related to the Company's leases as of June 30, 2024 and December 31, 2023 was as follows:   June 30, 2024 December 31, 2023 Weighted average remaining lease term (years):   Operating leases 5.45 5.50 Weighted average discount rate:   Operating leases 7.15  % 6.34  % Future minimum fixed lease payments under noncancelable leases at June 30, 2024 were as follows (in thousands):   Operating leases Remainder of 2024 $ 9,118  2025 10,878  2026 9,121  2027 7,896  2028 6,440  2029 and beyond 13,153    Total lease payments 56,606    Less: interest (9,401)     Present value of lease liabilities $ 47,205

v3.24.2

INCOME TAXES	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company recorded income tax provisions of $4.9 million and $6.9 million in the six months ended June 30, 2024 and 2023, respectively. These amounts reflect the Company's estimates of the effective rates expected to be applicable for the respective full years, adjusted for any discrete events, which are recorded in the period in which they occur. These estimates are reevaluated each quarter based on the Company's estimated tax expense for the full fiscal year. The estimated effective tax rate includes the impact of valuation allowances in various jurisdictions. The Company intends to continue to maintain a valuation allowance on its deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of the respective allowances.

v3.24.2

RELATED PARTIES	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTIES	RELATED PARTIESThe Company recognized revenue from its largest stockholder of $1.5 million and $5.0 million in the three months ended June 30, 2024 and 2023, respectively, and $3.0 million and $5.8 million in the six months ended June 30, 2024 and 2023, respectively. Also, certain related party stockholders participated in the Private Placement (See Note 11).

v3.24.2

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Liabilities for Royalty Payments to the IIA Prior to the Company's acquisition of ECI Telecom Group Ltd. ("ECI"), ECI had received research and development grants from the Office of the Innovation Authority of the Israeli Ministry of Economics (the "IIA"). The Company assumed ECI's contract with the IIA, which requires the Company to pay royalties to the IIA on proceeds from the sale of products which the Israeli government has supported by way of research and development grants. The royalties for grants prior to 2017 were calculated at the rates of 1.3% to 5.0% of the aggregated proceeds from the sale of such products developed at certain of the Company's R&D centers, up to an amount not exceeding 100% of such grants plus interest at LIBOR. Effective for grants approved in 2017 and subsequently, interest was calculated at the higher of LIBOR plus 1.5% to 2.75%. At June 30, 2024, the Company's maximum possible future royalties commitment, including $1.0 million of unpaid royalties accrued, was $19.6 million, including interest of $1.1 million, based on estimates of future product sales, grants received from the IIA not yet repaid, and management's estimation of products still to be sold. Litigation The Company is often a party to disputes and legal proceedings that it considers routine and incidental to its business, including those described below. The Company believes that it has meritorious defenses to the allegations made in the pending cases and intends to vigorously defend these lawsuits; however, the Company is unable currently to forecast the ultimate outcome of these or similar matters. Since it is difficult to predict the outcome of legal proceedings, it is possible that the ultimate outcomes could materially and adversely affect the Company’s business, financial position, results of operations or cash flows. Accordingly, with respect to these proceedings, the Company is currently unable to reasonably estimate the possible loss or range of possible loss. Miller Complaint. On November 8, 2018, Ron Miller, a purported stockholder of the Company, filed a Class Action Complaint (the "Miller Complaint") in the United States District Court for the District of Massachusetts (the "Massachusetts District Court") against the Company and three of its former officers (collectively, the "Defendants"), claiming to represent a class of purchasers of Sonus common stock during the period from January 8, 2015 through March 24, 2015 and alleging violations of the federal securities laws. Similar to a previous complaint entitled Sousa et al. vs. Sonus Networks, Inc. et al., which was dismissed with prejudice by an order dated June 6, 2017, the Miller Complaint claims that the Defendants made misleading forward-looking statements concerning Sonus' expected fiscal first quarter of 2015 financial performance, which statements were also the subject of an August 7, 2018 Securities and Exchange Commission Cease and Desist Order, whose findings the Company neither admitted nor denied. The Miller plaintiffs are seeking monetary damages. After the Miller Complaint was filed, several parties filed and briefed motions seeking to be selected by the Massachusetts District Court to serve as a Lead Plaintiff in the action. On June 21, 2019, the Massachusetts District Court appointed a group as Lead Plaintiffs and the Lead Plaintiffs filed an amended complaint on July 19, 2019. On August 30, 2019, the Defendants filed a motion to dismiss the Miller Complaint and, on October 4, 2019, the Lead Plaintiffs filed an opposition to the motion to dismiss. There was an oral argument on the motion to dismiss on February 12, 2020, and on October 20, 2022 the court denied the motion to dismiss. In June 2023, the Defendants agreed to a settlement in principle with the named plaintiffs, and final approval of the settlement was provided by the court on April 24, 2024. The settlement provided a release of all claims asserted in the litigation to all Defendants, who continue to deny liability. The $4.5 million settlement amount was funded by the provider of the Company's Directors and Officers liability insurance policy. Charter Complaint. On September 19, 2022, Charter Communications Operating, LLC (“Charter”) filed two complaints against two of our subsidiaries (Sonus Networks, Inc. and Ribbon Communications Operating Company, Inc.) alleging breach of contract with respect to indemnification obligations purportedly owed to Charter in connection with Charter’s legal dispute with Sprint Communications Company L.P., which was settled by Charter in March 2022. One complaint was filed in the Supreme Court of the State of New York, in New York County; the second complaint was filed by Charter as well as co-plaintiffs Charter Communications Holding Company, LLC and Bright House Networks, LLC, in the Superior Court of the State of Delaware in and for New Castle County. In both complaints, Charter is seeking monetary damages. The Company filed its answer to the first complaint file in New York on December 7, 2022 and to the second complaint filed in Delaware on January 9, 2023. Discovery is on-going and the court in the Delaware complaint has set a new trial date of June 2025. WideOpenWest Complaint. On August 9, 2023, WideOpenWest, Inc. and WideOpenWest Finance, LLC (collectively, “WOW”) filed a complaint against Ribbon alleging breach of contract with respect to indemnification obligations purportedly owed to WOW in connection with WOW’s legal dispute with Sprint Communications Company L.P., which was settled by WOW in the second quarter of 2023. The complaint was filed in the 429th Judicial District of the District Court of the State of Texas, in Collin County, Texas and has since been transferred to the 493rd Judicial District Court in Collin County. In the complaint, WOW is seeking monetary damages. The Company filed its answer to the complaint on October 5, 2023. Discovery is on-going and the court has set a preliminary trial date of December 2024.

v3.24.2

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (16,816)	$ (21,479)	$ (47,177)	$ (59,784)

v3.24.2

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.24.2

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring items, necessary for their fair presentation with accounting principles generally accepted in the United States of America ("GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Interim results are not necessarily indicative of results for a full year or any future interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as amended (the "Annual Report"), which was filed with the SEC on February 28, 2024.
Operating Segments	Operating Segments The Company's chief operating decision maker (the "CODM") is its president and chief executive officer. The CODM assesses the Company's performance based on the performance of two separate organizations within Ribbon: the Cloud and Edge segment ("Cloud and Edge") and the IP Optical Networks segment ("IP Optical Networks").
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Ribbon and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates and Judgments	Use of Estimates and Judgments The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon in preparing these condensed consolidated financial statements include revenue recognition for multiple element arrangements, inventory valuations, assumptions used to determine the fair value of stock-based compensation and the Preferred Stock and Warrants, intangible asset and goodwill valuations, including impairments, warranty accruals, legal contingencies and recoverability of Ribbon's net deferred tax assets and the related valuation allowances. Ribbon regularly assesses these estimates and records changes in estimates in the period in which they become known. Ribbon bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates.
Restricted Cash	Restricted Cash The Company classifies as restricted cash all cash pledged as collateral to secure long-term obligations and all cash otherwise limited in use by contractual provisions. At June 30, 2024 and December 31, 2023, the Company had $2.9 million and $0.1 million of restricted cash, respectively, representing restricted short-term bank deposits pledged to secure certain guarantees and surety bonds as security for the Company's obligations under tenders, and contracts.
Transfers of Financial Assets	Transfers of Financial Assets The Company's IP Optical Networks segment maintains customer receivables factoring agreements with a number of financial institutions. Under the terms of these agreements, the Company may transfer receivables to the financial institutions, on a non-recourse basis, provided that the financial institutions approve the receivables in advance. The Company maintains credit insurance policies from major insurance providers or obtains letters of credit from the customers for a majority of its factored trade receivables. The Company accounts for the factoring of its financial assets as a sale of the assets and records the factoring fees, when incurred, as a component of interest expense in the condensed consolidated statements of operations, and the proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (the "FASB") issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which increases the disclosure requirements around rate reconciliation information and certain types of income taxes companies are required to pay. ASU 2023-09 will be effective for the Company beginning in 2025, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which improves reportable segment disclosure requirements, including enhancement of the disclosures of significant segment expenses and interim disclosure requirements, to enable investors to better understand an entity's overall performance and assess potential future cash flows. ASU 2023-07 will be effective for the Company annually beginning in 2024 and on an interim basis beginning in 2025, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's disclosure Update and Simplification Initiative (“ASU 2023-06”), which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. This ASU was issued in response to, and to align GAAP with, the SEC's August 2018 final rule that updates and simplifies disclosure requirements. The effective date for the Company for each amendment will be the date on which the SEC's removal of that related disclosure requirement becomes effective, with early adoption prohibited. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures. On February 1, 2023, the FASB staff noted that they believe that the Pillar 2 tax, established by the OECD and intended to apply for tax years beginning in 2024, would be an alternative minimum tax and therefore deferred tax assets would not need to be recognized related to this parallel taxing system. On February 2, 2023, the OECD issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar 2 global minimum tax. Under an additional transitional safe harbor released July 17, 2023, the undertaxed profits rule top-up tax will not be applied by any constituent entity's jurisdiction of residence with respect to income earned by a company's ultimate parent entity in its jurisdiction of residence, if the ultimate parent entity's jurisdiction has a corporate tax rate of at least 20%. This transition safe harbor will apply to fiscal years beginning on or before December 31, 2025 and ending before December 31, 2026. The Company is closely monitoring developments and evaluating the impacts these new rules will have on its tax rate, including eligibility to qualify for these safe harbor rules. Based upon preliminary calculations for calendar year 2024, the Company anticipates that it will meet the safe harbors in most jurisdictions, and any remaining top-up tax should be immaterial.

v3.24.2

BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Schedule of Information Regarding Factoring of Accounts Receivable and Associated Fees	Factoring of accounts receivable and associated fees for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Accounts receivable sold 25,970  27,266  46,962  48,327  Less factoring fees (543) (815) (934) (1,270) Net cash proceeds 25,427  26,451  46,028  47,057

v3.24.2

EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of Calculations of Shares Used to Compute Loss Per Share	The shares used to compute loss per share were as follows (in thousands):   Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Weighted average shares outstanding - basic 173,793  170,103  173,110  169,326  Potential dilutive common shares —  —  —  —  Weighted average shares outstanding - diluted 173,793  170,103  173,110  169,326

v3.24.2

INVENTORY (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory at June 30, 2024 and December 31, 2023 consisted of the following (in thousands):   June 30, 2024 December 31, 2023 On-hand final assemblies and finished goods inventories $ 97,266  $ 93,077  Deferred cost of goods sold 2,530  3,269  99,796  96,346  Less noncurrent portion (included in Other assets) (20,580) (18,825) Current portion $ 79,216  $ 77,521

v3.24.2

INTANGIBLE ASSETS AND GOODWILL (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	The Company's intangible assets at June 30, 2024 and December 31, 2023 consisted of the following (in thousands): June 30, 2024 Weighted average amortization period (years) Cost Accumulated amortization Net carrying value Developed technology 7.84 $ 340,380  $ 251,232  $ 89,148  Customer relationships 11.86 268,140  147,904  120,236  Trade names 3.88 5,000  4,954  46  Software licenses 3.00 5,698  3,076  2,622  9.50 $ 619,218  $ 407,166  $ 212,052  December 31, 2023 Weighted average amortization period (years) Cost Accumulated amortization Net carrying value Developed technology 7.84 $ 340,380  $ 239,066  $ 101,314  Customer relationships 11.86 268,140  134,743  133,397  Trade names 3.88 5,000  4,901  99  Software licenses 3.00 5,436  2,159  3,277  9.51 $ 618,956  $ 380,869  $ 238,087
Schedule of Estimated Future Amortization Expense for Intangible Assets	Estimated future amortization expense for the Company's intangible assets at June 30, 2024 was as follows (in thousands): Years ending December 31, Remainder of 2024 $ 24,558  2025 44,176  2026 39,126  2027 33,969  2028 23,400  2029 18,379  Thereafter 28,444  $ 212,052
Schedule of Goodwill	There were no changes to the carrying value of the Company's goodwill in the six months ended June 30, 2024 and 2023. The components of goodwill at both June 30, 2024 and 2023 were as follows (in thousands): Cloud and Edge IP Optical Networks Total   Goodwill $ 392,302  $ 191,996  $ 584,298    Accumulated impairment losses (167,406) (116,000) (283,406) $ 224,896  $ 75,996  $ 300,892

v3.24.2

ACCRUED EXPENSES AND OTHER (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses at June 30, 2024 and December 31, 2023 consisted of the following (in thousands):   June 30, 2024 December 31, 2023 Employee compensation and related costs $ 34,467  $ 33,682  Professional fees 22,007  19,702  Taxes payable 5,126  8,383  Other 31,247  29,920  $ 92,847  $ 91,687

v3.24.2

WARRANTY ACCRUALS (Tables)	6 Months Ended
	Jun. 30, 2024
Guarantees and Product Warranties [Abstract]
Schedule of Changes in Accrual Balance	The changes in the Company's accrual balance in the six months ended June 30, 2024 were as follows (in thousands): Balance at January 1, 2024 $ 12,243  Current period provisions 2,824  Settlements (2,628) Balance at June 30, 2024 $ 12,439

v3.24.2

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES (Tables)	6 Months Ended
	Jun. 30, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Accrual Activity	Restructuring and related expense for the three and six months ended June 30, 2024 and 2023 was comprised of the following (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Severance and related costs $ 359  $ 2,843  $ 1,975  $ 8,551  Variable and other facilities-related costs 1,561  $ 1,125  3,010  2,131  Accelerated amortization of lease assets due to cease-use —  $ 339  —  562  $ 1,920  $ 4,307  $ 4,985  $ 11,244  A summary of the 2023 Restructuring Plan accrual activity for the six months ended June 30, 2024 is as follows (in thousands): Balance at January 1, 2024 Initiatives charged to expense Cash payments Net transfer to operating lease accounts Balance at June 30, 2024 Severance $ 671  $ 1,975  $ (1,852) $ —  $ 794  A summary of the 2022 Restructuring Plan accrual activity for the six months ended June 30, 2024 is as follows (in thousands): Balance at January 1, 2024 Initiatives charged to expense Cash payments Balance at June 30, 2024 Variable and other facilities-related costs $ 468  3,010  (3,086) $ 392

v3.24.2

DEBT (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Long Term Debt	The Company had the following outstanding borrowings, unamortized debt issuance costs and original issue discount, letters of credit, interest rates, and remaining borrowing capacity under the 2024 Credit Facility and the 2020 Credit Facility as of June 30, 2024 and December 31, 2023, respectively:   June 30, 2024 December 31, 2023 Current portion of Term Debt $ 3,500 $ 35,102 Long-term Debt, net of Current: Long-term Debt, net of Current (Face Amount) $ 346,500 $ 200,293 Original Issue Discount (6,961) — Unamortized Debt Issuance Costs - Contra-Liability (5,560) (2,811) Long-term Debt, net of Current $ 333,979 $ 197,482 Total Face Amount of Borrowings $ 350,000 $ 235,395 Unamortized Original Issue Discount and Debt Issuance Costs: Other Assets 1,238 557 Long-Term Debt - Contra Liability 12,521 2,811 Total Unamortized Original Issue Discount and Debt Issuance Costs $ 13,759 $ 3,368 Letters of Credit Outstanding $ — $ 2,711 Remaining Borrowing Capacity $ 35,000 $ 72,289 Average Interest Rates: Term Loan 11.6  % 10.0  % Letters of Credit —  % 4.5  %
Schedule of Debt Maturities	The Company's debt maturities as of June 30, 2024 were as follows: Years ending December 31, Remainder of 2024 $ 1,750  2025 6,125  2026 8,750  2027 13,125  2028 17,500  2029 302,750  $ 350,000

v3.24.2

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Impact of Derivative Financial Instrument on Condensed Consolidated Statement of Operations	The impact of the Company’s derivative financial instrument on its condensed consolidated statements of comprehensive (loss) income for the three and six months ended June 30, 2024 and 2023 was as follows, net of tax (in thousands): Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Gain (loss) recognized in other comprehensive income (loss) on swap, net of tax $ —  $ —  $ —  $ (2,715) Amount reclassified from accumulated other comprehensive income to other expense, net upon sale of swap, net of tax —  —  —  (5,099) Amount reclassified from accumulated other comprehensive income to interest expense (4,698) (1,322) (6,019) (4,507) Unrealized gain (loss) on interest rate swap, net of reclassifications and amortization $ (4,698) $ (1,322) $ (6,019) $ (12,321)

v3.24.2

PREFERRED STOCK AND WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Schedule Of Fair Value Of Preferred Stock And Warrants	The Company determined the fair value of the Warrants using Level 3 input. The key assumptions into the model utilized was as follows as of June 30, 2024: Warrants (Black-Scholes) Stock price $3.29 Strike price $3.77 Risk-free rate 4.52% Volatility 61.5% Dividend yield 0.0% Time to expiration (years) 2.8 Fair value of Warrant per share $1.27 The changes in the Company's Preferred Stock and Warrant liabilities for the six months ended June 30, 2024 were as follows (in thousands): Preferred stock liability Balance at January 1, 2024 $ 53,337  Payable in-kind dividends 2,743  Reversal of fair value adjustments 5,605  Call premium (3%) 1,851  Redemption (June 25, 2024) $ (63,536) Balance at June 30, 2024 $ —  Warrant liability Balance at January 1, 2024 $ 5,295  Fair value change 875  Balance at June 30, 2024 $ 6,170

v3.24.2

REVENUE RECOGNITION (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Timing of Performance Obligation	The Company's typical performance obligations include the following: Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due Software and Product Revenue Software licenses (perpetual or term) Upon transfer of control; typically, when made available for download (point in time) Generally, within 30 days of invoicing except for term licenses, which may be paid for over time Software licenses (subscription) Upon activation of hosted site (over time) Generally, within 30 days of invoicing Hardware When control of the hardware passes to the customer; typically, upon delivery (point in time) Generally, within 30 days of invoicing Software upgrades Upon transfer of control; typically, when made available for download (point in time) Generally, within 30 days of invoicing Customer Support Revenue Customer support Ratably over the course of the support contract (over time) Generally, within 30 days of invoicing Professional Services Other professional services (excluding training services) As work is performed (over time) Generally, within 30 days of invoicing (upon completion of services) Training When the class is taught (point in time) Generally, within 30 days of services being performed
Schedule of Disaggregation of Revenue	The Company's revenue for the three and six months ended June 30, 2024 and 2023 was disaggregated as follows: Three months ended June 30, 2024 Product revenue Service revenue (maintenance) Service revenue (professional services) Total revenue United States $ 35,368  $ 32,639  $ 13,462  $ 81,469  Europe, Middle East and Africa 33,239  17,491  8,188  58,918  Asia Pacific 26,081  9,759  2,597  38,437  Other 4,445  7,631  1,720  13,796  $ 99,133  $ 67,520  $ 25,967  $ 192,620  Three months ended June 30, 2023 Product revenue Service revenue (maintenance) Service revenue (professional services) Total revenue United States $ 53,545  $ 33,890  $ 11,842  $ 99,277  Europe, Middle East and Africa 28,831  17,998  7,679  54,508  Asia Pacific 31,810  10,164  2,269  44,243  Other 3,161  7,576  1,853  12,590  $ 117,347  $ 69,628  $ 23,643  $ 210,618  Six months ended June 30, 2024 Product revenue Service revenue (maintenance) Service revenue (professional services) Total revenue United States $ 61,975  $ 65,486  $ 25,122  $ 152,583  Europe, Middle East and Africa 74,928  35,187  15,886  126,001  Asia Pacific 42,714  20,000  5,524  68,238  Other 7,126  15,228  3,108  25,462  $ 186,743  $ 135,901  $ 49,640  $ 372,284  Six months ended June 30, 2023 Product revenue Service revenue (maintenance) Service revenue (professional services) Total revenue United States $ 91,612  $ 66,963  $ 22,695  $ 181,270  Europe, Middle East and Africa 56,266  38,125  14,254  108,645  Asia Pacific 57,425  19,536  5,413  82,374  Other 5,362  15,592  3,534  24,488  $ 210,665  $ 140,216  $ 45,896  $ 396,777  The Company's product revenue from indirect sales through its channel partner program and from its direct sales program for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Indirect sales through channel partner program $ 31,282  $ 37,590  $ 76,957  $ 73,504  Direct sales 67,851  79,757  109,786  137,161  $ 99,133  $ 117,347  $ 186,743  $ 210,665  The Company's product revenue from sales to enterprise customers and from sales to service provider customers for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Sales to enterprise customers $ 38,040  $ 37,707  $ 75,910  $ 65,119  Sales to service provider customers 61,093  79,640  110,833  145,546  $ 99,133  $ 117,347  $ 186,743  $ 210,665  The Company's product revenue and service revenue components by segment for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Product revenue:   Cloud and Edge $ 39,586  $ 52,352  $ 71,099  $ 95,191    IP Optical Networks 59,547  64,995  115,644  115,474      Total product revenue $ 99,133  $ 117,347  $ 186,743  $ 210,665  Service revenue:   Maintenance:     Cloud and Edge $ 52,663  $ 55,034  $ 105,859  $ 109,844      IP Optical Networks 14,857  14,594  30,042  30,372        Total maintenance revenue 67,520  69,628  135,901  140,216    Professional services:     Cloud and Edge 18,306  17,870  35,266  34,701      IP Optical Networks 7,661  5,773  14,374  11,195        Total professional services revenue 25,967  23,643  49,640  45,896          Total service revenue $ 93,487  $ 93,271  $ 185,541  $ 186,112
Schedule of Customer Assets and Liabilities	The changes in the Company's accounts receivable, unbilled receivables and deferred revenue balances for the six months ended June 30, 2024 were as follows (in thousands): Accounts receivable Unbilled accounts receivable Deferred revenue (current) Deferred revenue (long-term) Balance at January 1, 2024 $ 186,938  $ 81,483  $ 113,381  $ 19,218  Increase (decrease), net (42,102) (15,365) (13,834) (2,586) Balance at June 30, 2024 $ 144,836  $ 66,118  $ 99,547  $ 16,632

v3.24.2

OPERATING SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The tables below provide revenue, adjusted gross profit and depreciation expense by reportable segment for the three and six months ended June 30, 2024 and 2023 (in thousands): Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Segment revenue:   Cloud and Edge $ 110,555  $ 125,256  $ 212,224  $ 239,736    IP Optical Networks 82,065  85,362  160,060  157,041      Revenue $ 192,620  $ 210,618  $ 372,284  $ 396,777  Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Segment adjusted gross profit:   Cloud and Edge $ 72,946  $ 83,299  $ 140,065  $ 153,274    IP Optical Networks 31,791  26,251  63,756  45,751      Total segment adjusted gross profit 104,737  109,550  203,821  199,025  Stock-based compensation expense (338) (641) (916) (1,325) Amortization of acquired technology (6,532) (7,439) (13,083) (14,828)       Gross profit $ 97,867  $ 101,470  $ 189,822  $ 182,872  Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Segment depreciation expense:   Cloud and Edge $ 2,324  $ 2,477  $ 4,657  $ 4,976    IP Optical Networks 1,052  1,072  2,113  2,083      Depreciation expense $ 3,376  $ 3,549  $ 6,770  $ 7,059

v3.24.2

MAJOR CUSTOMERS (Tables)	6 Months Ended
	Jun. 30, 2024
Risks and Uncertainties [Abstract]
Schedule of Customer Contributing 10% or More of the Revenue	The following customer contributed 10% or more of the Company's revenue in the three and six months ended June 30, 2024 and 2023:   Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Verizon Communications Inc. 12% 11% 11% 11%

v3.24.2

STOCK-BASED COMPENSATION PLANS (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Activity Related to Unvested Restricted Stock Grants	The activity related to the Company's RSUs for the six months ended June 30, 2024 was as follows: Shares Weighted Average Grant Date Fair Value Unvested balance at January 1, 2024 7,091,368  $ 3.18  Granted 1,374,541  $ 3.22  Vested (3,027,037) $ 3.54  Forfeited (294,994) $ 3.21  Unvested balance at June 30, 2024 5,143,878  $ 2.98
Schedule of Activity Related to Performance Stock Awards	The activity related to the Company's PSUs for the six months ended June 30, 2024 was as follows: Shares Weighted Average Grant Date Fair Value Unvested balance at January 1, 2024 6,297,931  $ 2.07  Granted 1,338,985  $ 4.32  Vested (288,672) $ 3.14  Forfeited (619,168) $ 5.82  Unvested balance at June 30, 2024 6,729,076  $ 2.13
Schedule of Stock-based Compensation Expenses Which Are Included in Condensed Consolidated Statement of Operations	The condensed consolidated statements of operations include stock-based compensation for the three and six months ended June 30, 2024 and 2023 as follows (in thousands):   Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Product cost of revenue $ 64  $ 115  $ 170  $ 264  Service cost of revenue 274  526  746  1,061  Research and development 616  1,300  1,684  2,562  Sales and marketing 954  2,142  2,111  4,271  General and administrative 1,586  2,033  3,305  3,806  $ 3,494  $ 6,116  $ 8,016  $ 11,964

v3.24.2

LEASES (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Schedule of Right-of-use Lease Assets and Lease Liabilities	The Company's right-of-use lease assets and lease liabilities at June 30, 2024 and December 31, 2023 were as follows (in thousands): Classification June 30, 2024 December 31, 2023 Assets:   Operating lease assets Operating lease right-of-use assets $ 33,901  $ 39,783  Liabilities:     Current Operating Operating lease liabilities $ 12,347  $ 15,739      Non-Current Operating Operating lease liabilities, net of current 34,858  38,711        Total Operating lease liabilities $ 47,205  $ 54,450
Schedule of Components of Lease Expense	The components of lease expense for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):   Three months ended Six months ended   June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Operating lease cost* $ 4,107  $ 4,737  $ 8,306  $ 9,497  Short-term lease cost 3,413  3,663  6,854  7,090  Variable lease costs (costs excluded from minimum fixed lease payments)** 828  904  1,683  1,706  Sublease income (217) (393) (477) (823)     Net lease cost $ 8,131  $ 8,911  $ 16,366  $ 17,470  * No accelerated amortization was recorded in the three and six months ended June 30, 2024. Operating lease costs for the three and six months ended June 30, 2023 included $0.4 million and $0.6 million, respectively, of accelerated amortization for certain assets partially or fully vacated with no intent or ability to sublease. ** No variable lease costs were accrued in the three and six months ended June 30, 2024 or 2023 for future estimated variable expenses related to certain assets partially or fully vacated with no intent or ability to sublease. Other information related to the Company's leases as of June 30, 2024 and December 31, 2023 was as follows:   June 30, 2024 December 31, 2023 Weighted average remaining lease term (years):   Operating leases 5.45 5.50 Weighted average discount rate:   Operating leases 7.15  % 6.34  %
Schedule of Future Minimum Fixed Lease Payments Under Noncancelable Operating Leases	Future minimum fixed lease payments under noncancelable leases at June 30, 2024 were as follows (in thousands):   Operating leases Remainder of 2024 $ 9,118  2025 10,878  2026 9,121  2027 7,896  2028 6,440  2029 and beyond 13,153    Total lease payments 56,606    Less: interest (9,401)     Present value of lease liabilities $ 47,205

v3.24.2

BASIS OF PRESENTATION - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) country segment	Dec. 31, 2023 USD ($)
Product Information [Line Items]
Number of countries (over) | country	30
Number of operating segments | segment	2
Restricted cash	$ 2,850	$ 136
Restricted Short-term Bank Deposits
Product Information [Line Items]
Restricted cash	$ 2,900	$ 100

v3.24.2

BASIS OF PRESENTATION - Factoring of Accounts Receivable and Associated Fees (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Accounts receivable sold	$ 25,970	$ 27,266	$ 46,962	$ 48,327
Less factoring fees	(543)	(815)	(934)	(1,270)
Net cash proceeds	$ 25,427	$ 26,451	$ 46,028	$ 47,057

v3.24.2

EARNINGS (LOSS) PER SHARE - Calculations of Shares Used to Compute Loss Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Reconciliation of weighted average shares outstanding from basic to diluted
Weighted average shares outstanding—basic (in shares)	173,793	170,103	173,110	169,326
Potential dilutive common shares (in shares)	0	0	0	0
Weighted average shares outstanding—diluted (in shares)	173,793	170,103	173,110	169,326

v3.24.2

EARNINGS (LOSS) PER SHARE - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended
	Jun. 25, 2024	Mar. 28, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, par value (in dollars per share)			$ 0.0001		$ 0.0001		$ 0.0001
Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred Stock, redemption rate	103.00%
Payable in-kind dividends					$ 2,743
Convertible Preferred Stock Converted to Other Securities	$ 63,500
Preferred Stock | Private Placement
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock issued in equity offering (in shares)		55,000
Share price (in dollars per share)		$ 970
Warrant | Series A Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares of common stock entitled from warrants (in shares)		4,900,000
Warrant | Private Placement
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share price (in dollars per share)		$ 3.77
Number of shares of common stock entitled from warrants (in shares)		4,858,090
Warrant | Private Placement | Series A Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Proceeds from issuance of common stock		$ 53,400
Warrant | Private Placement | Series A Preferred Stock | Beneficial Owner
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Proceeds from issuance of common stock		$ 10,000
Warrant | Private Placement | Common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, par value (in dollars per share)		$ 0.0001
Exercise price of warrants (in dollars per share)		$ 3.77
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities not included in computation of diluted loss per share (in shares)			11,900,000	14,100,000	11,900,000	14,100,000
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities not included in computation of diluted loss per share (in shares)					4,900,000	4,900,000
Exercise price of warrants (in dollars per share)			$ 3.77	$ 3.77	$ 3.77	$ 3.77

v3.24.2

INVENTORY (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
On-hand final assemblies and finished goods inventories	$ 97,266	$ 93,077
Deferred cost of goods sold	2,530	3,269
Gross inventory	99,796	96,346
Less noncurrent portion (included in Other assets)	(20,580)	(18,825)
Current portion	$ 79,216	$ 77,521

v3.24.2

INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Assets and Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Intangible Assets And Goodwill
Weighted average amortization period (years)	9 years 6 months	9 years 6 months 3 days
Cost	$ 619,218	$ 618,956
Accumulated amortization	407,166	380,869
Net carrying value	212,052	$ 238,087
Estimated future amortization expense for intangible assets
Remainder of 2024	24,558
2025	44,176
2026	39,126
2027	33,969
2028	23,400
2029	18,379
Thereafter	28,444
Total	$ 212,052
Developed technology
Intangible Assets And Goodwill
Weighted average amortization period (years)	7 years 10 months 2 days	7 years 10 months 2 days
Cost	$ 340,380	$ 340,380
Accumulated amortization	251,232	239,066
Net carrying value	$ 89,148	$ 101,314
Customer relationships
Intangible Assets And Goodwill
Weighted average amortization period (years)	11 years 10 months 9 days	11 years 10 months 9 days
Cost	$ 268,140	$ 268,140
Accumulated amortization	147,904	134,743
Net carrying value	$ 120,236	$ 133,397
Trade names
Intangible Assets And Goodwill
Weighted average amortization period (years)	3 years 10 months 17 days	3 years 10 months 17 days
Cost	$ 5,000	$ 5,000
Accumulated amortization	4,954	4,901
Net carrying value	$ 46	$ 99
Software licenses
Intangible Assets And Goodwill
Weighted average amortization period (years)	3 years	3 years
Cost	$ 5,698	$ 5,436
Accumulated amortization	3,076	2,159
Net carrying value	$ 2,622	$ 3,277

v3.24.2

INTANGIBLE ASSETS AND GOODWILL - Schedule of Components of Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Goodwill [Line Items]
Goodwill	$ 584,298		$ 584,298
Accumulated impairment losses	(283,406)		(283,406)
Goodwill	300,892	$ 300,892	300,892
Cloud and Edge
Goodwill [Line Items]
Goodwill	392,302		392,302
Accumulated impairment losses	(167,406)		(167,406)
Goodwill	224,896		224,896
IP Optical Networks
Goodwill [Line Items]
Goodwill	191,996		191,996
Accumulated impairment losses	(116,000)		(116,000)
Goodwill	$ 75,996		$ 75,996

v3.24.2

FAIR VALUE HIERARCHY (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Total Face Amount of Borrowings	$ 350,000	$ 235,395
Fair value of debt	350,000	235,100
Warrant liability	6,170	5,295
Fair value of preferred stock		53,300
Term Loan Facility | 2020 Credit Facility
Schedule of Investments [Line Items]
Total Face Amount of Borrowings	$ 350,000	$ 235,400

v3.24.2

ACCRUED EXPENSES AND OTHER (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Employee compensation and related costs	$ 34,467	$ 33,682
Professional fees	22,007	19,702
Taxes payable	5,126	8,383
Other	31,247	29,920
Total accrued expenses	$ 92,847	$ 91,687

v3.24.2

WARRANTY ACCRUALS - Changes in Accrual Balance (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at January 1, 2024	$ 12,243
Current period provisions	2,824
Settlements	(2,628)
Balance at June 30, 2024	$ 12,439

v3.24.2

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring and related	$ 1,920	$ 4,307	$ 4,985	$ 11,244
Restructuring reserve current	1,100		1,100		$ 1,100
Restructuring reserve noncurrent	1,000		1,000		$ 1,100
2023 Restructuring Initiative
Restructuring Cost and Reserve [Line Items]
Restructuring and related	400		2,000
2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related	$ 1,600		$ 3,000

v3.24.2

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES - Components of Restructuring Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Severance and related costs	$ 359	$ 2,843	$ 1,975	$ 8,551
Variable and other facilities-related costs	1,561	1,125	3,010	2,131
Accelerated amortization of lease assets due to cease-use	0	339	0	562
Restructuring and related expense	$ 1,920	$ 4,307	$ 4,985	$ 11,244

v3.24.2

RESTRUCTURING AND FACILITIES CONSOLIDATION INITIATIVES - Restructuring Accrual Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Restructuring Reserve [Roll Forward]
Initiatives charged to expense	$ 1,920	$ 4,307	$ 4,985	$ 11,244
2023 Restructuring Initiative
Restructuring Reserve [Roll Forward]
Initiatives charged to expense	400		2,000
2022 Restructuring Plan
Restructuring Reserve [Roll Forward]
Initiatives charged to expense	1,600		3,000
Severance | 2023 Restructuring Initiative
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			671
Initiatives charged to expense			1,975
Cash payments			(1,852)
Net transfer to operating lease accounts			0
Balance at the end of the period	794		794
Variable and other facilities-related costs | 2022 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period			468
Initiatives charged to expense			3,010
Cash payments			(3,086)
Balance at the end of the period	$ 392		$ 392

v3.24.2

DEBT - Credit Facilities (Details)			6 Months Ended
	Jun. 21, 2024 USD ($)	Mar. 24, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Mar. 03, 2020 USD ($)
Line of Credit Facility [Line Items]
Original Issue Discount			$ 6,961,000		$ 0
Amortization of debt issuance costs and original issue discount			$ 3,445,000	$ 1,793,000
Letters of Credit
Line of Credit Facility [Line Items]
Debt interest rate			0.00%		4.50%
2024 Credit Agreement
Line of Credit Facility [Line Items]
Commitments from lender	$ 385,000,000
2024 Credit Agreement | Term Loan Facility
Line of Credit Facility [Line Items]
Commitments from lender	350,000,000
Remaining principal payable at maturity	298,400,000
Original Issue Discount	7,700,000
Debt issuance costs, gross	6,100,000
Amortization of debt issuance costs and original issue discount	13,800,000
2024 Credit Agreement | Term Loan Facility | Debt Instrument, Period One
Line of Credit Facility [Line Items]
Quarterly principal payment amount	900,000
2024 Credit Agreement | Term Loan Facility | Debt Instrument, Period Two
Line of Credit Facility [Line Items]
Quarterly principal payment amount	2,200,000
2024 Credit Agreement | Term Loan Facility | Debt Instrument, Period Three
Line of Credit Facility [Line Items]
Quarterly principal payment amount	$ 4,400,000
2024 Credit Agreement | Term Loan Facility | Alternate Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	5.25%
2024 Credit Agreement | Term Loan Facility | Minimum | Alternate Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	4.75%
2024 Credit Agreement | Term Loan Facility | Maximum | Alternate Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	5.25%
2024 Credit Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Commitments from lender	$ 35,000,000
2024 Credit Agreement | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate	6.25%
2024 Credit Agreement | Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR) | Line of Credit
Line of Credit Facility [Line Items]
Basis spread on variable rate	5.75%
2024 Credit Agreement | Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR) | Line of Credit
Line of Credit Facility [Line Items]
Basis spread on variable rate	6.25%
2024 Credit Agreement | Letters of Credit
Line of Credit Facility [Line Items]
Commitments from lender	$ 20,000,000
2020 Credit Facility
Line of Credit Facility [Line Items]
Commitments from lender	$ 500,000,000
Percentage of debt repaid or redeemed	100.00%
Write off of capitalized debt issuance costs	$ 2,000,000
Consolidated net leverage ratio		1.10
2020 Credit Facility | Maximum | Debt Instrument, Period One
Line of Credit Facility [Line Items]
Consolidated net leverage ratio		4.50
2020 Credit Facility | Maximum | Debt Instrument, Period Two
Line of Credit Facility [Line Items]
Consolidated net leverage ratio		4.25
2020 Credit Facility | Maximum | Debt Instrument, Period Three
Line of Credit Facility [Line Items]
Consolidated net leverage ratio		4.00
2020 Credit Facility | Term Loan Facility
Line of Credit Facility [Line Items]
Commitments from lender	400,000,000
2020 Credit Facility | Revolving Credit Facility
Line of Credit Facility [Line Items]
Commitments from lender	100,000,000	$ 75,000,000				$ 100,000,000
Debt issuance costs, gross		1,700,000
Repayments of debt		75,000,000
2020 Credit Facility | Letters of Credit
Line of Credit Facility [Line Items]
Commitments from lender	30,000,000	$ 20,000,000				$ 30,000,000
Debt interest rate		4.50%
2020 Credit Facility | Letters of Credit | SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate			4.50%
2020 Credit Facility | Swingline Loan
Line of Credit Facility [Line Items]
Commitments from lender	$ 20,000,000

v3.24.2

DEBT - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Mar. 24, 2023
Line of Credit Facility [Line Items]
Current portion of Term Debt	$ 3,500	$ 35,102
Long-term Debt, net of Current (Face Amount)	346,500	200,293
Original Issue Discount	(6,961)	0
Unamortized Debt Issuance Costs - Contra-Liability	(5,560)	(2,811)
Long-term Debt, net of Current	333,979	197,482
Total Face Amount of Borrowings	350,000	235,395
Other Assets	1,238	557
Long-Term Debt - Contra Liability	12,521	2,811
Total Unamortized Original Issue Discount and Debt Issuance Costs	13,759	3,368
2020 Credit Facility
Line of Credit Facility [Line Items]
Remaining Borrowing Capacity	$ 35,000	$ 72,289
Term Loan
Line of Credit Facility [Line Items]
Average Interest Rates:	11.60%	10.00%
Letters of Credit
Line of Credit Facility [Line Items]
Outstanding balance	$ 0	$ 2,711
Average Interest Rates:	0.00%	4.50%
Letters of Credit | 2020 Credit Facility
Line of Credit Facility [Line Items]
Average Interest Rates:			4.50%

v3.24.2

DEBT - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Remainder of 2024	$ 1,750
2025	6,125
2026	8,750
2027	13,125
2028	17,500
2029	302,750
Total Debt	$ 350,000	$ 235,395

v3.24.2

DEBT - Letters of Credit and Other Guarantees (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Letters of credit outstanding		$ 7,900,000
Restricted cash	$ 2,850,000	136,000
Letters of Credit | 2024 Credit Facility
Line of Credit Facility [Line Items]
Letters of credit outstanding	0
Letters of Credit | 2020 Credit Facility
Line of Credit Facility [Line Items]
Letters of credit outstanding		2,700,000
Various Uncommitted Facilities
Line of Credit Facility [Line Items]
Letters of credit outstanding	$ 9,500,000	$ 5,200,000

v3.24.2

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($)						1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 21, 2024	Mar. 27, 2023	Mar. 24, 2023	Aug. 16, 2022	Jul. 22, 2022	Aug. 16, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Mar. 31, 2020
Derivative [Line Items]
Debt balance							$ 350,000,000		$ 350,000,000		$ 235,395,000
Interest Expense
Derivative [Line Items]
Amount reclassified from accumulated other comprehensive income (loss)							4,698,000	$ 1,322,000	6,019,000	$ 4,507,000
Interest Rate Swap
Derivative [Line Items]
Derivative instrument sold		$ 170,000,000	$ 170,000,000	$ 30,000,000	$ 30,000,000	$ 60,000,000
Proceeds from sale		9,800,000	9,400,000	1,600,000	1,500,000
Notional amount			170,000,000	$ 340,000,000	$ 370,000,000	340,000,000
Amount reclassified from accumulated other comprehensive income (loss)		7,300,000				$ 3,100,000
Amortization of derivative instrument							200,000	200,000	400,000	500,000
Proceeds from derivative interest		400,000	400,000
Proceeds from sale of derivative, gross		9,400,000	$ 9,000,000
Interest Rate Swap | Interest Expense
Derivative [Line Items]
Amount reclassified from accumulated other comprehensive income (loss)	$ 500,000
Interest Rate Swap | Fair Value, Inputs, Level 2
Derivative [Line Items]
Interest rate derivative							0		0		0
2020 Credit Facility | Interest Rate Swap
Derivative [Line Items]
Amount reclassified from accumulated other comprehensive income (loss)		$ 12,000,000
Amortization of derivative instrument							1,400,000	$ 1,600,000	3,000,000	$ 1,600,000
2020 Credit Facility | Interest Rate Swap | Interest Expense
Derivative [Line Items]
Amount reclassified from accumulated other comprehensive income (loss)	$ 4,400,000
Term Loan Facility | 2024 Credit Agreement
Derivative [Line Items]
Debt balance							350,000,000		350,000,000
Term Loan Facility | 2020 Credit Facility
Derivative [Line Items]
Debt balance							$ 350,000,000		$ 350,000,000		$ 235,400,000
Principal amount												$ 400,000,000
Fixed rate							0.904%		0.904%

v3.24.2

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Impact of Derivative Financial Instrument on Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative [Line Items]
Gain (loss) recognized in other comprehensive income (loss) on swap, net of tax	$ 0	$ 0	$ 0	$ (2,715)
Unrealized gain (loss) on interest rate swap, net of reclassifications and amortization	(4,698)	(1,322)	(6,019)	(12,321)
Other Income
Derivative [Line Items]
Amount reclassified from accumulated other comprehensive income to interest expense	0	0	0	(5,099)
Interest Expense
Derivative [Line Items]
Amount reclassified from accumulated other comprehensive income to interest expense	$ (4,698)	$ (1,322)	$ (6,019)	$ (4,507)

v3.24.2

PREFERRED STOCK AND WARRANTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			6 Months Ended	12 Months Ended
	Jun. 25, 2024	Mar. 28, 2023	Jun. 30, 2024	Dec. 31, 2023
Series A Preferred Stock
Dividends Payable [Line Items]
Proceeds from issuance of preferred stock		$ 53,400
Offering expenses paid				$ 3,500
Preferred stock, redemption, percentage year one		103.00%
Preferred stock, redemption, percentage year two		102.00%
Series A Preferred Stock | Beneficial Owner
Dividends Payable [Line Items]
Proceeds from issuance of preferred stock		$ 10,000
Series A Preferred Stock | Dividends Payable in Kind Year One
Dividends Payable [Line Items]
Preferred stock, dividend percentage		9.25%
Series A Preferred Stock | Dividends Payable in Kind Year Two
Dividends Payable [Line Items]
Preferred stock, dividend percentage		9.75%
Series A Preferred Stock | Dividends Payable In Cash Thereafter
Dividends Payable [Line Items]
Preferred stock, dividend percentage		12.00%
Preferred Stock
Dividends Payable [Line Items]
Preferred Stock, redemption rate	103.00%
Payable in-kind dividends			$ 2,743
Convertible Preferred Stock Converted to Other Securities	$ 63,500
Preferred Stock | Private Placement
Dividends Payable [Line Items]
Stock issued in equity offering (in shares)		55,000
Share price (in dollars per share)		$ 970
Warrant | Series A Preferred Stock
Dividends Payable [Line Items]
Number of shares of common stock entitled from warrants (in shares)		4,900,000
Warrant | Private Placement
Dividends Payable [Line Items]
Share price (in dollars per share)		$ 3.77
Number of shares of common stock entitled from warrants (in shares)		4,858,090

v3.24.2

PREFERRED STOCK AND WARRANTS - Key Inputs (Details) - Fair Value, Inputs, Level 3 - Black Scholes Pricing Model - Warrant	Jun. 30, 2024 $ / shares
Dividends Payable [Line Items]
Time to expiration (years)	2 years 9 months 18 days
Fair value of Warrant per share (in dollars per share)	$ 1.27
Stock price
Dividends Payable [Line Items]
Measurement Input	3.29
Strike price
Dividends Payable [Line Items]
Measurement Input	3.77
Risk-free rate
Dividends Payable [Line Items]
Measurement Input	0.0452
Volatility
Dividends Payable [Line Items]
Measurement Input	0.615
Dividend yield
Dividends Payable [Line Items]
Measurement Input	0.000

v3.24.2

PREFERRED STOCK AND WARRANTS - Warrant and Preferred Stock Liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Preferred stock liability
Reversal of fair value adjustments	$ 8,091	$ 1,456
Warrant liability
Fair value change	875	$ (1,318)
Preferred Stock
Preferred stock liability
Beginning balance	53,337
Payable in-kind dividends	2,743
Reversal of fair value adjustments	5,605
Call premium (3%)	1,851
Redemption (June 25, 2024)	(63,536)
Ending balance	0
Warrant
Warrant liability
Beginning balance	5,295
Fair value change	875
Ending balance	$ 6,170

v3.24.2

REVENUE RECOGNITION - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($) revenueSource	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Disaggregation of Revenue [Line Items]
Number of primary revenue sources | revenueSource	2
Revenue agreement term	1 year
Revenue recognized	$ 78	$ 71
Customer contract expected life (in years)	5 years
Deferred sales commissions capitalized	$ 3		$ 3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Disaggregation of Revenue [Line Items]
Revenue to be recognized	$ 6
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Disaggregation of Revenue [Line Items]
Revenue to be recognized	$ 6
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Disaggregation of Revenue [Line Items]
Revenue to be recognized	$ 5
Revenue, remaining performance obligation, period	1 year

v3.24.2

REVENUE RECOGNITION - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 192,620	$ 210,618	$ 372,284	$ 396,777
Cloud and Edge
Disaggregation of Revenue [Line Items]
Total revenue	110,555	125,256	212,224	239,736
IP Optical Networks
Disaggregation of Revenue [Line Items]
Total revenue	82,065	85,362	160,060	157,041
United States
Disaggregation of Revenue [Line Items]
Total revenue	81,469	99,277	152,583	181,270
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	58,918	54,508	126,001	108,645
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	38,437	44,243	68,238	82,374
Other
Disaggregation of Revenue [Line Items]
Total revenue	13,796	12,590	25,462	24,488
Product revenue
Disaggregation of Revenue [Line Items]
Total revenue	99,133	117,347	186,743	210,665
Product revenue | Cloud and Edge
Disaggregation of Revenue [Line Items]
Total revenue	39,586	52,352	71,099	95,191
Product revenue | IP Optical Networks
Disaggregation of Revenue [Line Items]
Total revenue	59,547	64,995	115,644	115,474
Product revenue | Sales to enterprise customers
Disaggregation of Revenue [Line Items]
Total revenue	38,040	37,707	75,910	65,119
Product revenue | Sales to service provider customers
Disaggregation of Revenue [Line Items]
Total revenue	61,093	79,640	110,833	145,546
Product revenue | Indirect sales through channel partner program
Disaggregation of Revenue [Line Items]
Total revenue	31,282	37,590	76,957	73,504
Product revenue | Direct sales
Disaggregation of Revenue [Line Items]
Total revenue	67,851	79,757	109,786	137,161
Product revenue | United States
Disaggregation of Revenue [Line Items]
Total revenue	35,368	53,545	61,975	91,612
Product revenue | Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	33,239	28,831	74,928	56,266
Product revenue | Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	26,081	31,810	42,714	57,425
Product revenue | Other
Disaggregation of Revenue [Line Items]
Total revenue	4,445	3,161	7,126	5,362
Service
Disaggregation of Revenue [Line Items]
Total revenue	93,487	93,271	185,541	186,112
Service revenue (maintenance)
Disaggregation of Revenue [Line Items]
Total revenue	67,520	69,628	135,901	140,216
Service revenue (maintenance) | Cloud and Edge
Disaggregation of Revenue [Line Items]
Total revenue	52,663	55,034	105,859	109,844
Service revenue (maintenance) | IP Optical Networks
Disaggregation of Revenue [Line Items]
Total revenue	14,857	14,594	30,042	30,372
Service revenue (maintenance) | United States
Disaggregation of Revenue [Line Items]
Total revenue	32,639	33,890	65,486	66,963
Service revenue (maintenance) | Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	17,491	17,998	35,187	38,125
Service revenue (maintenance) | Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	9,759	10,164	20,000	19,536
Service revenue (maintenance) | Other
Disaggregation of Revenue [Line Items]
Total revenue	7,631	7,576	15,228	15,592
Service revenue (professional services)
Disaggregation of Revenue [Line Items]
Total revenue	25,967	23,643	49,640	45,896
Service revenue (professional services) | Cloud and Edge
Disaggregation of Revenue [Line Items]
Total revenue	18,306	17,870	35,266	34,701
Service revenue (professional services) | IP Optical Networks
Disaggregation of Revenue [Line Items]
Total revenue	7,661	5,773	14,374	11,195
Service revenue (professional services) | United States
Disaggregation of Revenue [Line Items]
Total revenue	13,462	11,842	25,122	22,695
Service revenue (professional services) | Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	8,188	7,679	15,886	14,254
Service revenue (professional services) | Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	2,597	2,269	5,524	5,413
Service revenue (professional services) | Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,720	$ 1,853	$ 3,108	$ 3,534

v3.24.2

REVENUE RECOGNITION - Schedule of Customer Assets & Liabilities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Accounts receivable
Beginning balance	$ 186,938
Increase (decrease), net	(42,102)
Ending balance	144,836
Unbilled accounts receivable
Beginning balance	81,483
Increase (decrease), net	(15,365)
Ending balance	66,118
Deferred revenue (current)
Beginning balance	113,381
Increase (decrease), net	(13,834)
Ending balance	99,547
Deferred revenue (long-term)
Beginning balance	19,218
Increase (decrease), net	(2,586)
Ending balance	$ 16,632

v3.24.2

OPERATING SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment			2
Segment Reporting Information [Line Items]
Total revenue	$ 192,620	$ 210,618	$ 372,284	$ 396,777
Total segment adjusted gross profit	104,737	109,550	203,821	199,025
Stock-based compensation expense	(338)	(641)	(916)	(1,325)
Amortization of acquired technology	(6,532)	(7,439)	(13,083)	(14,828)
Gross profit	97,867	101,470	189,822	182,872
Segment depreciation expense:
Depreciation expense	3,376	3,549	6,770	7,059
Cloud and Edge
Segment Reporting Information [Line Items]
Total revenue	110,555	125,256	212,224	239,736
Total segment adjusted gross profit	72,946	83,299	140,065	153,274
Segment depreciation expense:
Depreciation expense	2,324	2,477	4,657	4,976
IP Optical Networks
Segment Reporting Information [Line Items]
Total revenue	82,065	85,362	160,060	157,041
Total segment adjusted gross profit	31,791	26,251	63,756	45,751
Segment depreciation expense:
Depreciation expense	$ 1,052	$ 1,072	$ 2,113	$ 2,083

v3.24.2

MAJOR CUSTOMERS (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Verizon Communications Inc. | Revenue | Customer
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%	11.00%	11.00%	11.00%

v3.24.2

STOCK-BASED COMPENSATION PLANS - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) performance_period	Jun. 30, 2023 USD ($)
Stock-based compensation
Fair value of vested restricted and performance-based stock grants	$ 9,095	$ 11,724
Fair value of the assumed awards attributable to future stock-based compensation expense	$ 19,000
Expected period for unrecognized expense	1 year
Performance Shares, Performance Based
Stock-based compensation
Granted percentage	60.00%
Number of performance periods | performance_period	3
Performance Shares, Market Based
Stock-based compensation
Performance period (in years)	3 years
Granted percentage	40.00%
Number of performance periods | performance_period	1
Percent of performance metrics achieved	200.00%
RSAs and RSUs
Stock-based compensation
Fair value of vested restricted and performance-based stock grants	$ 10,700
PSUs
Stock-based compensation
Fair value of vested restricted and performance-based stock grants	$ 900
Minimum | RSAs, RSUs and PSUs
Stock-based compensation
Performance period (in years)	1 year
Maximum | RSAs, RSUs and PSUs
Stock-based compensation
Performance period (in years)	3 years

v3.24.2

STOCK-BASED COMPENSATION PLANS - Restricted Stock Awards and Units and Performance-Based Stock Units (Details)	6 Months Ended
	Jun. 30, 2024 $ / shares shares
RSUs
Shares
Unvested balance at the beginning of the period (in shares) | shares	7,091,368
Granted (in shares) | shares	1,374,541
Vested (in shares) | shares	(3,027,037)
Forfeited (in shares) | shares	(294,994)
Unvested balance at the end of the period (in shares) | shares	5,143,878
Weighted Average Grant Date Fair Value
Unvested balance at the end of the period (in dollars per share) | $ / shares	$ 3.18
Granted (in dollars per share) | $ / shares	3.22
Vested (in dollars per share) | $ / shares	3.54
Forfeited (in dollars per share) | $ / shares	3.21
Unvested balance at end of the period (in dollars per share) | $ / shares	$ 2.98
PSUs
Shares
Unvested balance at the beginning of the period (in shares) | shares	6,297,931
Granted (in shares) | shares	1,338,985
Vested (in shares) | shares	(288,672)
Forfeited (in shares) | shares	(619,168)
Unvested balance at the end of the period (in shares) | shares	6,729,076
Weighted Average Grant Date Fair Value
Unvested balance at the end of the period (in dollars per share) | $ / shares	$ 2.07
Granted (in dollars per share) | $ / shares	4.32
Vested (in dollars per share) | $ / shares	3.14
Forfeited (in dollars per share) | $ / shares	5.82
Unvested balance at end of the period (in dollars per share) | $ / shares	$ 2.13

v3.24.2

STOCK-BASED COMPENSATION PLANS - Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Stock-based compensation
Stock-based compensation	$ 3,494	$ 6,116	$ 8,016	$ 11,964
Product cost of revenue
Stock-based compensation
Stock-based compensation	64	115	170	264
Service cost of revenue
Stock-based compensation
Stock-based compensation	274	526	746	1,061
Research and development
Stock-based compensation
Stock-based compensation	616	1,300	1,684	2,562
Sales and marketing
Stock-based compensation
Stock-based compensation	954	2,142	2,111	4,271
General and administrative
Stock-based compensation
Stock-based compensation	$ 1,586	$ 2,033	$ 3,305	$ 3,806

v3.24.2

LEASES - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Lessee, Lease, Description [Line Items]
Additional amortization expense	$ 0	$ 339,000	$ 0	$ 562,000
Variable lease cost accrued	0	0	0	0
Operating lease, payments			9,400,000	9,600,000
Facility Closing
Lessee, Lease, Description [Line Items]
Accrual for future anticipated variable lease costs	1,300,000		1,300,000		$ 1,500,000
Facility Closing | 2022 Restructuring Plan
Lessee, Lease, Description [Line Items]
Additional amortization expense	$ 0	$ 400,000	$ 0	$ 600,000

v3.24.2

LEASES - Right of Use Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets:
Operating lease assets	$ 33,901	$ 39,783
Liabilities:
Current Operating	12,347	15,739
Non-Current Operating	34,858	38,711
Total Operating lease liabilities	$ 47,205	$ 54,450

v3.24.2

LEASES - Components of Lease Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease, cost	$ 4,107,000	$ 4,737,000	$ 8,306,000	$ 9,497,000
Short-term lease cost	3,413,000	3,663,000	6,854,000	7,090,000
Variable lease costs (costs excluded from minimum fixed lease payments)	828,000	904,000	1,683,000	1,706,000
Sublease income	(217,000)	(393,000)	(477,000)	(823,000)
Net lease cost	$ 8,131,000	$ 8,911,000	$ 16,366,000	$ 17,470,000
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other (expense) income, net	Other (expense) income, net	Other (expense) income, net	Other (expense) income, net
Accelerated amortization	$ 0	$ 400,000	$ 0	$ 600,000
Variable lease cost accrued	$ 0	$ 0	$ 0	$ 0

v3.24.2

LEASES - Other Information (Details)	Jun. 30, 2024	Dec. 31, 2023
Weighted average remaining lease term (years):
Operating leases	5 years 5 months 12 days	5 years 6 months
Weighted average discount rate:
Operating leases	7.15%	6.34%

v3.24.2

LEASES - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Operating leases
Remainder of 2024	$ 9,118
2025	10,878
2026	9,121
2027	7,896
2028	6,440
2029 and beyond	13,153
Total lease payments	56,606
Less: interest	(9,401)
Present value of lease liabilities	$ 47,205	$ 54,450

v3.24.2

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax provisions	$ (1,499)	$ (5,403)	$ (4,874)	$ (6,869)

v3.24.2

RELATED PARTIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
Total revenue	$ 192,620	$ 210,618	$ 372,284	$ 396,777
Related Party
Related Party Transaction [Line Items]
Total revenue	$ 1,500	$ 5,000	$ 3,000	$ 5,800

v3.24.2

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions		6 Months Ended
	Sep. 19, 2022 complaint subsidiary	Jun. 30, 2024 USD ($)	Oct. 18, 2023 USD ($)	Nov. 08, 2018 executive	Dec. 31, 2017
Loss Contingencies [Line Items]
Sale of stock grant interest (as a percent)					100.00%
Maximum future royalty commitment		$ 1.0
Maximum future royalty commitment		19.6
Maximum future royalty commitment, interest		$ 1.1
Litigation liability amount			$ 4.5
Miller Complaint
Loss Contingencies [Line Items]
Number of former officers | executive				3
Charter Complaints
Loss Contingencies [Line Items]
Loss contingency, claims filed, number | complaint	2
Loss contingency, number of defendants | subsidiary	2
Charter Complaint Filed With Supreme Court Of The State Of New York
Loss Contingencies [Line Items]
Loss contingency, claims filed, number | complaint	1
Minimum
Loss Contingencies [Line Items]
Royalties rates					1.30%
Basis spread on variable rate		1.50%
Maximum
Loss Contingencies [Line Items]
Royalties rates					5.00%
Basis spread on variable rate		2.75%

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