ADTRAN Inc. (ADTN) recently announced that TruVista, a prominent telecommunication provider, has opted to utilize ADTN’s Advanced Link Monitoring (ALM) technology for its fiber footprint across South Carolina and Georgia. The recent venture signifies the expansion of a decade-long business relationship between ADTRAN and TruVista. ADTN earlier assisted TruVista with the rollout of the fiber network in both states.In today’s digital-oriented world, uninterrupted robust network connectivity is becoming crucia ...

Revenue and Profitability - The company reported a significant fluctuation in revenue, which may continue to impact operating results in future periods[9]. - Total revenue for the three months ended March 31, 2024, was $226.173 million, a decrease of 30.3% compared to $323.912 million for the same period in 2023[24]. - The operating loss for the three months ended March 31, 2024, was $(339.679) million, significantly higher than the $(49.732) million loss reported in the same period last year[24]. - Net loss attributable to ADTRAN Holdings, Inc. for the three months ended March 31, 2024, was $(324.550) million, compared to $(40.083) million for the same period in 2023, reflecting a substantial increase in losses[24]. - Gross profit for the three months ended March 31, 2024, was $72.255 million, down from $87.808 million in the same period last year, indicating a decline of 17.7%[24]. - The company expects gross margins to vary over time, with potential impacts on product and service profitability[9]. Financial Condition - The company has incurred substantial indebtedness due to the Business Combination and DPLTA, which could adversely affect financial condition and results of operations[12]. - Cash and cash equivalents increased to $106.757 million as of March 31, 2024, up from $87.167 million as of December 31, 2023[22]. - Total assets decreased to $1.328 billion as of March 31, 2024, from $1.683 billion as of December 31, 2023, representing a decline of 21.1%[22]. - Total liabilities decreased to $620.488 million as of March 31, 2024, from $636.934 million as of December 31, 2023, a reduction of 2.6%[22]. - As of March 31, 2024, the total equity of ADTRAN Holdings, Inc. is $265,783 thousand, a decrease from $593,822 thousand as of December 31, 2023[29]. Impairment and Charges - The company recognized impairment charges related to goodwill and intangible assets, with the possibility of future charges[9]. - The company recognized a goodwill impairment of $292.583 million for the three months ended March 31, 2024, which significantly impacted the operating results[24]. - The company reported a goodwill impairment of $292,583 thousand in Q1 2024, which is a new development compared to no impairment reported in Q1 2023[35]. - The company incurred total charges of $8.8 million during the three months ended March 31, 2024, due to a strategy shift, including $4.0 million related to inventory write-downs[70]. Research and Development - The company engages in research and development to innovate and improve products, but may miss market opportunities compared to larger competitors[13]. - Research and development expenses for the three months ended March 31, 2024, were $60.251 million, down from $70.143 million in the same period last year, a decrease of 14.1%[24]. Market and Economic Conditions - The lengthy sales and approval process for new products has historically resulted in revenue fluctuations, which may persist[9]. - The company is exposed to risks related to credit from customers and distributors, potentially affecting accounts receivable collection[9]. - The company faces ongoing inflationary pressures that could negatively impact revenues and profitability[9]. - ADTRAN experienced revenue declines in the year ended December 31, 2023, and during the three months ended March 31, 2024, due to uncertain macroeconomic conditions[39]. Business Efficiency and Cost Management - The Company has suspended dividend payments and is implementing a business efficiency program, including planned reductions in operating expenses and a site consolidation plan[40]. - The company expects future costs related to the Business Efficiency Program to range between $20.6 million and $35.8 million[117]. - Total restructuring expenses for the three months ended March 31, 2024, amounted to $17.1 million, compared to $2.4 million for the same period in 2023[121]. Liquidity and Borrowing - The company has access to $203.0 million on its Credit Facility for future borrowings, but as of March 31, 2024, it was limited to additional borrowings of $22.7 million based on debt covenant compliance metrics[39]. - The company believes its cash and cash equivalents, investments, and access to cash under the Wells Fargo credit facility will be adequate to meet its business operating requirements for at least the next twelve months[40]. - The Company entered into a new receivables purchase agreement with a borrowing capacity of up to $40.0 million, with total secured borrowings of $12.6 million as of March 31, 2024[58]. Stock and Shareholder Information - The weighted average shares outstanding for the three months ended March 31, 2024, were 78.814 million, compared to 78.358 million for the same period in 2023[24]. - The loss per share attributable to ADTRAN Holdings, Inc. was $(4.12) for the three months ended March 31, 2024, compared to $(0.51) for the same period in 2023[104]. - The company had a total of 79,116 common shares outstanding as of March 31, 2024, an increase from 78,970 shares as of December 31, 2023[29]. Tax and Deferred Assets - The effective tax rate for the three months ended March 31, 2024, was a benefit of 5.5%, down from a benefit of 21.9% for the same period in 2023[59]. - The Company had net deferred tax assets totaling $96.5 million as of March 31, 2024, with a valuation allowance of $86.5 million against those assets[59]. Foreign Currency and Derivatives - The company has 45 forward rate contracts outstanding as of March 31, 2024, to hedge foreign currency exposure[79]. - The fair value of derivative instruments recorded in the balance sheet was $4.1 million as of March 31, 2024, compared to $4.8 million at the end of 2023[81]. - The company recorded a gain of $766,000 from foreign exchange contracts during the three months ended March 31, 2024, compared to a loss of $(69,000) in the same period of 2023[82].

Financial Data and Key Metrics Changes - Q1 2024 revenue was $226.2 million, down 30% year-over-year but slightly up sequentially [22] - Non-GAAP gross margin was 41.6%, an increase of 429 basis points year-over-year [23] - Non-GAAP operating loss was $8.8 million, translating to a non-GAAP operating margin of negative 3.9% [24] - Positive operating cash flow of $36.6 million compared to a negative $16.3 million in the previous quarter [25] - Free cash flow generated was $23.2 million, with cash and cash equivalents increasing to $106.8 million, a 22% quarter-over-quarter increase [25] Business Line Data and Key Metrics Changes - Network Solutions segment accounted for 80.1% of revenues, down from 87.2% in Q1 2023 [22] - Access and Aggregation contributed 36% of revenue, down 16% year-over-year but grew 26.6% sequentially [22] - Optical Networking Solutions contributed 33.2% of revenues, down 49% year-over-year and down 12.7% quarter-over-quarter [22] - Subscriber Solutions contributed 30.8%, down 12.1% year-over-year and down 7.3% quarter-over-quarter [22] Market Data and Key Metrics Changes - International revenue made up 63.2% of total revenue, while domestic revenue contributed 36.8% [23] - Strong performance in the U.S. market with small to midsized service provider customers purchasing fiber access platforms [6] - In Europe, larger service providers are migrating away from high-risk vendors, driving demand for fiber network infrastructure [15] Company Strategy and Development Direction - Focus on maximizing investment opportunities in fiber-based broadband networks in the U.S. and high-risk vendor replacements in Europe [7] - Continued emphasis on managing expenses and reducing inventory levels [5] - Development of a comprehensive fiber networking portfolio optimized for small and midsized U.S. service providers [9] - Local manufacturing capabilities highlighted as a competitive advantage, with over 1 million OLT ports shipped compliant with U.S. regulations [14] Management's Comments on Operating Environment and Future Outlook - Management sees cautious spending from service provider customers but remains confident in long-term growth drivers [26] - Anticipation of improvement in market conditions in the second half of the year [32] - Management expects to narrow guidance for Q2 2024 to between $215 million and $235 million [27] Other Important Information - Significant improvements in working capital, with a reduction in trade accounts receivables and inventories [25] - Ongoing business efficiency program aimed at reducing operating expenses by $90 million compared to 2023 [52] Q&A Session Summary Question: Understanding excess inventories and their impact - Management indicated that access and aggregation products have the least amount of inventory, while optical products still face challenges [29] - Expectation for improvement in optical inventory in the second half of the year [32] Question: Differentiating between inventory issues and softer consumption rates - Management noted that demand is mixed, with some customers moving forward while others are cautious due to inventory levels [34] Question: Subscriber solutions inventory and demand - Subscriber solutions had a strong quarter, particularly in residential segments, indicating inventory issues are being resolved [38] Question: Updates on operational efficiency and real estate transactions - Management confirmed ongoing efforts in restructuring and working capital management, including real estate sales [43][45]

ADTRAN Holdings, Inc. (ADTN) reported first-quarter 2024 results, wherein both the bottom line and the top line beat the respective Zacks Consensus Estimate.  The expansion of the Mosaic One platform reportedly boosted its customer base. On a year-over-year basis, revenues contracted due to soft macroeconomic trends.Net IncomeOn a GAAP basis, net loss in the March quarter was $324.6 million or a loss of $4.12 per share compared with net loss of $40 million or a loss of 51 cents per share in the prior-year q ...

ADTRAN Holdings (ADTN) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 75%. A quarter ago, it was expected that this networking equipment maker would post a loss of $0.09 per share when it actually produced a loss of $1.09, delivering a surprise of -1,111.11%.Over the last four quarters, the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 3, 2024 ADTRAN Holdings, Inc. (Exact name of Registrant as Specified in Its Charter) Delaware 001-41446 87-2164282 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No .) 901 Explorer Boulevard Huntsville, Alabama 35806-2807 (Address of Pri ...

EXHIBIT 99.1 ADTRAN Holdings, Inc. reports preliminary fourth quarter 2023 financial results • Preliminary Q4 revenue at $225.5 million and at mid-point of guidance • Sequential improvement in preliminary GAAP and non-GAAP operating expenses in Q4, with a 7.6% reduction in GAAP operating expenses and a 15.1% reduction in non-GAAP operating expenses respectively Huntsville, Alabama, USA. — February 26, 2024 — ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (“ADTRAN Holdings” or the “Company”) today announc ...

12liability of warranty UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file number 000-41446 ADTRAN Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 87-2164282 (State or Other Juri ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:ADTRAN Holdings, Inc. (ADTN) is a fiber networking solutions provider. The Zacks Consensus Estimate for its current year earnings has been revised 225% downward over the last 60 days.The Container Store Group, Inc. (TCS) is a specialty retailer of organizing solutions and custom spaces. The Zacks Consensus Estimate for its current year earnings has been revised 169.2% downward over the last 60 days.Finward Bancorp (FNWD) is the holdin ...

STOCKHOLM--(BUSINESS WIRE)--Adtran today announced that Netnod is leveraging its optical pumping cesium atomic clock technology to bring precise, reliable and assured timing to Sweden’s critical national infrastructure. Protecting the country’s timing services is vital for the nation’s economy, encompassing finance, digital services and next-generation telecoms networks, such as 5G. By upgrading its timing network with the coreSync™ OSA 3300-HP, Netnod, the leading provider of internet exchange, DNS and tim ...