ADTRAN, Inc. (ADTN) recently announced that South Central Rural Telecommunications Cooperative (SCRTC) opted to deploy ADTRAN’s Advanced Link Monitor (ALM) to proactively identify faults and degradation in fiber networks. Optical fiber is the backbone of today’s network and making sure it is fully operational is a complex endeavor. Broadband connectivity has become essential for daily life with its broad range of use cases in businesses, remote work, education, entertainment and access to healthcare and fin ...

GLASGOW, Ky.--(BUSINESS WIRE)--Adtran today announced that South Central Rural Telecommunications Cooperative (SCRTC) is using its ALM in-service fiber monitoring solution to continuously probe its fiber network for faults and degradations. The comprehensive assurance platform empowers SCRTC to locate and resolve issues before they impact services for its customers across South Central Kentucky. With no need to engage in time-consuming manual fault isolation, SCRTC can leverage its maintenance resources mor ...

Financial Data and Key Metrics Changes - Q4 2023 revenue was $225.5 million, down 37% year-over-year and down 17% quarter-over-quarter [12] - Non-GAAP gross margin was 41.9%, an increase of 277 basis points year-over-year and 155 basis points sequentially [13] - Non-GAAP operating loss was $3.2 million, translating to a non-GAAP operating margin of negative 1.4% [13] - Cash and cash equivalents totaled $87.2 million at quarter end, with cash flow used for operations at $23.6 million [14] Business Line Data and Key Metrics Changes - Network Solutions segment accounted for 80% of revenues in Q4 2023, down from 88.6% in Q4 2022 [12] - Services and Support segment contributed 20% of revenues in Q4 2023, up from 11.4% in the year-ago quarter [12] - Access and aggregation contributed 28.5% of revenue, down 32.9% year-over-year [12] - Optical networking solutions contributed 38.2% of revenues, down 39.5% year-over-year [12] - Subscriber solutions were down 37.5% year-over-year but grew 22.3% quarter-over-quarter, contributing 33.4% of revenues [12] Market Data and Key Metrics Changes - 62% of revenues came from international markets, with 38% from domestic markets in Q4 [12] - Fiber broadband deployments in the US set a record in 2023, passing 9 million homes, up 13% year-over-year [5] - In the UK, full fiber coverage increased by 4.6 million premises in 2023, now covering 17.1 million premises [6] Company Strategy and Development Direction - The company is focused on two strategic initiatives: investment in fiber-based broadband networks in the US and high-risk vendor replacements in Europe [5] - The company aims to broaden its presence in Europe and increase its product portfolio breadth for US customers [5] - The company is well-positioned to address Build America, Buy America requirements with minimal changes to its supply chain [8] Management's Comments on Operating Environment and Future Outlook - Management noted cautious spending from service provider customers due to economic uncertainty and inventory adjustments [16] - The company expects revenue for Q1 2024 to range between $210 million and $240 million, with a non-GAAP operating margin between negative 7% and 0% [16] - Management remains optimistic about long-term growth drivers, supported by stimulus funding and the desire to reduce exposure to high-risk vendors [16] Other Important Information - The company reduced non-GAAP operating expenses by 15% sequentially and 18% year-over-year [13] - The company established a valuation allowance related to domestic deferred tax assets during the quarter [13] Q&A Session Summary Question: Impact of BEAD on Demand Trends - Management acknowledged some impact from BEAD, particularly in the Tier 3 carrier space, but noted that demand appears to be flattish [17][18] Question: Update on Real Estate Portfolio Rationalization - The company is consolidating its real estate and expects to clear out two buildings, potentially generating $40 million to $60 million from the process [19][21] Question: Status of CPE Subscriber Solutions Inventory Correction - Management believes they are through the deep part of the inventory correction for CPE subscriber solutions [22][23] Question: Access and Aggregation Timing Issues - Management indicated that access and aggregation were down due to specific customer timing but expects improvement in Q1 [24][25] Question: Competitive Dynamics in the US Rural Broadband Market - The competitive landscape remains stable, primarily involving the company, Calix, and Nokia, with no significant changes noted [44]

ADTRAN Holdings, Inc. (ADTN) reported soft fourth-quarter 2023 results, wherein both the bottom line and the top line missed the respective Zacks Consensus Estimate. The company recorded a top-line contraction year over year due to geopolitical tension, forex volatility and tough competition from other players in the market.Net IncomeOn a GAAP basis, the net loss in the December quarter was $109.9 million or a loss of $1.40 per share against an income of $38.9 million or 49 cents per share in the prior-year ...

Core Insights - ADTRAN Holdings, Inc. reported preliminary unaudited financial results for Q4 2023, indicating a challenging revenue environment but improvements in gross margins and operating expenses [1][4]. Financial Performance - Preliminary GAAP gross margin for Q4 2023 was 34.8%, an increase of 483 basis points year-over-year and 754 basis points quarter-over-quarter, driven by lower purchasing and transportation costs, as well as reduced acquisition-related expenses [1][2]. - Preliminary non-GAAP gross margin was 41.9%, up from 40.3% in Q3 2023 and 39.1% in the same quarter last year, reflecting a favorable customer and product mix [2]. - Preliminary GAAP operating margin was negative 16.7%, impacted by lower revenue and acquisition-related expenses, while non-GAAP operating margin was negative 1.4%, at the upper end of the guidance range [2][3]. - The company reported a preliminary GAAP net loss of $109.9 million for Q4 2023, translating to a diluted loss per share of $1.40 [2][3]. Revenue and Cost Analysis - Total revenue for Q4 2023 was $225.5 million, down from $358.3 million in Q4 2022, with Network Solutions revenue at $180.4 million and Services & Support revenue at $45.1 million [15]. - Cost of revenue for Q4 2023 was $147.0 million, compared to $250.9 million in the same quarter last year, with a notable inventory write-down of $3.3 million [15][18]. - The company reduced GAAP operating expenses by 7.6% sequentially and 17.0% year-over-year, while non-GAAP operating expenses were reduced by 15.1% sequentially and 17.7% year-over-year [2][3]. Management Commentary - The CEO expressed that while revenue challenges persist due to macroeconomic conditions and elevated customer inventories, the fundamental demand for expanding fiber infrastructure remains strong [4]. - The company is implementing cost improvement measures to transform into a more streamlined and efficient organization, positioning itself for better performance when spending normalizes [4]. Upcoming Events - ADTRAN Holdings will hold a conference call on February 27, 2024, to discuss its preliminary fourth-quarter results [4].

ADTRAN Inc. (ADTN) announced that Vodafone Turkey has selected ADTRAN Oscilloquartz optical cesium atomic clock technology to ensure ultra-reliable synchronization for the nationwide network services. The suite of solutions encompasses Oscilloquartz OSA 3350 ePRC+™, which is integrated with Vodafone’s existing core grandmaster clocks Oscilloquartz OSA 5440 and OSA 5430.Leveraging optical pumping technology, the OSA 3350 ePRC+ offers high-performance frequency stability and effectively matches the rising dem ...

HUNTSVILLE, Ala.--(BUSINESS WIRE)--Adtran today announced that it has been recognized as one of STL Partners’ top 100 edge computing companies for 2024, marking its second consecutive year of inclusion on the list. The acknowledgment reaffirms Adtran’s substantial contributions to the sector and highlights its role as a leader, driving innovation amidst the quickly evolving edge computing landscape. This leadership is increasingly vital as more enterprises and service providers seek options beyond centrally ...

HUNTSVILLE, Ala.--(BUSINESS WIRE)--Adtran today announced its readiness to support the Broadband Equity Access and Deployment (BEAD) program, welcoming the clarity and guidance provided by the Build America, Buy America (BABA) rule. With its commitment to US-based manufacturing spanning three decades, Adtran is at the forefront of the market with BABA-compliant fiber access solutions ready to enhance nationwide connectivity, economic growth and the digital inclusivity of communities across America. With 42. ...

ISTANBUL--(BUSINESS WIRE)--Adtran today announced that Vodafone Turkey has deployed its Oscilloquartz optical cesium atomic clock technology to bring new levels of resilient timing to its nationwide network. Adtran’s first-to-market solution will deliver robust protection against disruptions to GNSS signals, enabling Turkey’s leading service provider to maintain uninterrupted, reliable connectivity even while it readies 5G services. By combining its existing Adtran Oscilloquartz core grandmaster clock devic ...

HUNTSVILLE, Ala.--(BUSINESS WIRE)--ADTRAN Holdings, Inc. (NASDAQ: ADTN) announced today that the Company will release its financial results for the fourth quarter 2023 after market close on Monday, February 26, 2024. The Company will conduct a conference call on Tuesday, February 27, 2024, to discuss the results for the quarter. What: ADTRAN Holdings, Inc. Earnings Call When: 9:30 a.m. Central Time on Tuesday, February 27 Where: www.adtran.com/investor ADTRAN Holdings, Inc. will webcast this conference. ...