Financial Data and Key Metrics Changes - Revenue in Q3 2024 was $227.7 million, a sequential increase and above the midpoint of guidance [20] - Non-GAAP gross margin improved to 42.1%, an increase of 17 basis points sequentially [22] - Non-GAAP operating profit was $2.5 million, or 1.1% of revenues, compared to $1.5 million, or 0.7% of revenues, in Q2 2024 [23] - Operating cash flow was $42 million, compared to $19.9 million in Q2 2024, generating $23.2 million of free cash flow in Q3 2024 [26] Business Line Data and Key Metrics Changes - Network Solutions segment delivered $181.5 million, accounting for approximately 80% of total revenues, while Services & Support segment delivered $46.2 million, or 20% of total revenues [20] - Access & Aggregation revenue was $67.1 million, down 4% sequentially; optical networking solutions revenue was $70.5 million, also down 4% sequentially; subscriber solutions revenue increased 9% to $90.1 million [21] - Subscriber solutions growth was driven by a 25% increase in sales of residential ONTs and RGs, and a strong 102% year-over-year increase [10] Market Data and Key Metrics Changes - 55% of revenues were generated outside the U.S., with higher demand from EMEA and APAC regions [7] - Large service provider sales increased by 10% sequentially in both U.S. and non-U.S. regions [7] Company Strategy and Development Direction - The company is focusing on improving profitability and operating cash flow, with non-GAAP gross margins improving from 38.6% to 41.9% year-over-year [15] - Plans to monetize non-strategic business side assets are underway, with updates expected next quarter [16] - The company is optimistic about the adoption of higher-speed access technologies and the convergence of residential, business, and mobile backhaul into a single network [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted improvements in customer activity and bookings, with expectations for more meaningful growth in the current quarter [17] - The company remains cautious in its forecast due to relatively cautious spending from service provider customers [17] - Management expressed confidence in long-term growth driven by increasing fiber access and optical transport globally [27] Other Important Information - The company is seeing strong demand for carrier Ethernet CPE solutions as carriers connect more businesses with higher-speed fiber services [11] - The company has added 13 new carrier customers in optical networking solutions [8] - The company is working on a capital efficiency program to improve financial positioning [16] Q&A Session Summary Question: Update on excess inventory situation - Management noted a pickup in bookings and mentioned a customer in Europe with an inventory hangover expected to last through early Q1 [31] Question: Real estate update - Management indicated progress with interested parties for the sale leaseback option and better financing conditions [35] Question: Sustainability of better trends in North America and EMEA - Management highlighted improvements in existing customer base and new wins, with a mix of operationalized and upcoming projects [37][40] Question: Impact of announced acquisition in the optical space - Management stated that while there are RFPs generated due to potential disruptions, it has not materially affected the customer base yet [44] Question: Importance of BEAD and potential impacts - Management emphasized that demand for fiber connectivity is a fundamental driver, and BEAD adds fuel to that fire but is not the sole driver [46] Question: Guidance for Q4 and segment growth - Management expects growth across all segments, with stronger performance anticipated in international markets [48][50] Question: DSO improvement - Management attributed the decrease in DSO to customer mix and efforts in collections [79]

Core Viewpoint - ADTRAN Holdings Inc. reported disappointing third-quarter 2024 results, with both adjusted earnings and revenues falling short of Zacks Consensus Estimates [1] Financial Performance - The company experienced a year-over-year revenue decline to $227.7 million from $272.3 million, primarily due to weak demand trends in the Network Solutions business [4] - On a GAAP basis, ADTRAN incurred a net loss of $31.2 million or 36 cents per share, an improvement from a net loss of $78.2 million or $1.00 per share in the same quarter last year [3] - Non-GAAP net loss was $6.7 million or 5 cents per share, compared to a loss of $13.9 million or 18 cents per share in the prior-year quarter, which was wider than the Zacks Consensus Estimate of 2 cents [3] Revenue Breakdown - Network Solutions revenues fell to $181.5 million from $228.6 million year-over-year, impacted by macroeconomic challenges and inventory adjustments [5] - Services and Support revenues increased to $46.2 million from $43.8 million in the prior-year quarter [5] Operational Metrics - Gross margin on a GAAP basis improved to 37.4% from 27.3% in the year-ago quarter [6] - Operating loss decreased to $24 million from $89.3 million in the previous year [6] Cash Flow and Liquidity - In the first nine months of 2024, ADTRAN generated $98.5 million in cash from operating activities, compared to a cash utilization of $29.3 million in the prior-year period [7] - As of September 30, 2024, the company had $88.5 million in cash and cash equivalents [7] Future Outlook - For the fourth quarter of 2024, management expects net sales to be in the range of $230-$245 million, with non-GAAP operating margin projected between 0% and 4% [8]

ADTRAN Holdings (ADTN) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -150%. A quarter ago, it was expected that this networking equipment maker would post a loss of $0.10 per share when it actually produced a loss of $0.24, delivering a surprise of -140%.Over the last four quarters, the com ...

EXHIBIT 99.1 ADTRAN Holdings, Inc. reports preliminary third quarter 2024 financial results Huntsville, Alabama, USA. — November 06, 2024 — ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) ("ADTRAN Holdings" or the "Company") today announced its preliminary unaudited financial results for the third quarter of 2024. • Revenue: $227.7 million, up sequentially and above the mid-point of guidance. • Gross margin: GAAP gross margin: 37.4%; Non-GAAP gross margin: 42.1%, a sequential increase of 134 and 17 basis ...

ADTRAN, Inc. (ADTN) has recently announced that Centre Régional Informatique et d’Applications Numériques de Normandie (“CRIANN”) has deployed ADTRAN’s FSP 3000 optical transport technology and ALM fiber monitoring platform to enhance network connectivity across research and education centers in France. ADTRAN’s Elite partner Axians played a crucial role in the installation process and will provide maintenance support in the future.The growing usage of data-intensive applications in the domain of AI (artifi ...

To plug the key shortcomings in existing Wi-Fi testing capabilities, ADTRAN, Inc. (ADTN) has collaborated with Candella Technologies to develop an integrated solution. The alliance with this network testing solutions provider has enabled ADTRAN to offer significant value to service providers and the broader Wi-Fi ecosystem, serving as a test bed for innovative developments.Digging Deep Into ADTN-Candella Tie-UpThe partnership aims to leverage ADTRAN’s SDG 8700 Series Wi-Fi 7 technology with Candela’s automa ...

ADTRAN, Inc. (ADTN) recently announced that D & P Communications will leverage the former’s state-of-the-art fiber access technology to boost its broadband capabilities. This collaborative effort aims to deliver multigigabit connectivity to a wider range of D & P Communications’ subscribers in the urban and underserved rural communities across Southern Michigan.How Will ADTN Solution Aid D & P Communications?The deployment will feature ADTRAN’s scalable fiber broadband solution, incorporating Combo PON tech ...

ADTRAN, Inc. (ADTN) recently announced that the U.K.-based telecommunication company Pulse Fibre has selected its cutting-edge 10Gbit/s XGS-PON fiber access platform to expand network connectivity across rural and urban landscapes in the country.How ADTN Solutions Will Benefit Pulse Fibre?Installing high-speed broadband infrastructure in rural areas is challenging and often unfeasible owing to a scattered population, high investment requirements, small market size and limited resources. However, ADTN’s SDX ...

ADTRAN, Inc. (ADTN) is actively focusing on fiber optic technology products to support high-speed network access solutions for use across Internet protocol (IP), asynchronous transfer mode (ATM) and time division multiplexed (TDM) architectures in both wireline and wireless network applications.ADTRAN expects solid traction in domestic markets for ultra-broadband and fiber-to-the-home solutions along with software-defined (SD) access and ethernet passive optical network (EPON) solutions. Its global leadersh ...

ADTRAN, Inc. (ADTN) recently secured a contract for an undisclosed amount to help modernize the fiber optic network of 1&1 Versatel. Per the deal, ADTRAN FSP 3000 open optical transport technology will be utilized by one of Germany's largest fiber-optic networks to provide comprehensive and tailored telecommunication solutions to users.The multi-million-euro investment will also witness the deployment of ADTRAN’s ALM fiber monitoring solution that offers real-time network assurance for swift and proactive m ...