Re: ECI registration document
Thanks for posting this "prospectus." It covers up to mid-2018 but it is still useful. There is meat for many to read and offer their insights into this major merger.
My SKIM-take is that JP Morgan put this together because there is likely a whole lot of redundancy in products and costs that could be taken out. I appears to me that the firm is Sonus-like, now transitioned to security, virtualization and SDN, with five distinct product lines. For 2016 through early 2018, also like Sonus, they are running small net losses. India is their #1 growth market as of 2017 at 42% and while revenues are rising, price-sensitivity is driving down margins. Their next big market is EMEA (Europe, Middle East, Africa) at 30%, then Israel and "the rest of the world" as the balance.
Intriguing that in their 2018-stated growth strategy, they want to establish a presence in North America. With their Ericsson partnership, perhaps they know they have a greenfield in the US against Huawei. They may have improved their growth and profit story since mid-2018:
>> The Group has successfully grown its business with 24% revenue growth in the six months ended 30 June 2018 compared to the six months ended 30 June 2017. The Group, becoming a challenger in its markets, has generated over 70 “new wins” since 2016, comprising new customers or new products being ordered by existing customers. Over 65% of these new wins have been with new customers and these new wins have been with customers located in more than 30 different countries, with the majority from EMEA. These new wins have generated approximately $170 million in revenue from the beginning of 2016 to 30 June 2018. Since the beginning of 2017 until mid 2018, the Group estimates it has been the fastest growing provider by revenue CAGR amongst its key European and US peers, including Ciera, Nokia, Cisco, Infinera and ADVA. <<
Management is seasoned with long experience with ECI. The CEO reported was 71 and the executives are mostly in their sixties.
In summary, for a global market of a multitude of players in UC with Huawei taking share, for the combined companies there are efficiencies to be gained in head count and product offerings. There are new markets for Ribbon ... and North America for ECI, but until someone digs in and determines the optimum solutions for customers, there will be a separation of wheat and chafe that will take time and perhaps goodwill and re-structuring expenses to write off.
Disclosure: I have been out of Ribbon for a year. All the best.