☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) For the quarterly period ended September 30, 2023 OR ☐ 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: 001-41446 ADTRAN Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 87-2164282 (State ...

ADTRAN Holdings, Inc (NASDAQ:ADTN) Q3 2023 Earnings Conference Call November 7, 2023 10:30 AM ET Company Participants Tom Stanton - Chief Executive Officer Ulrich Dopfer - Chief Financial Officer Conference Call Participants George Notter - Jefferies Michael Genovese - Rosenblatt Securities Ryan Koontz - Needham & Company Tim Savageaux - Northland Capital Markets Operator Ladies and gentlemen, thank you for standing by and welcome to the ADTRAN Holdings Inc. Third Quarter 2023 Earnings Release Conference Ca ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ 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: 001-41446 ADTRAN Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 87-2164282 (State or o ...

ADTRAN Holdings, Inc. (NASDAQ:ADTN) Q2 2023 Earnings Conference Call August 8, 2023 10:30 AM ET Company Participants Tom Stanton - Chief Executive Officer Uli Dopfer - Senior Vice President and Chief Financial Officer Conference Call Participants Michael Genovese - Rosenblatt Securities Greg Mesniaeff - WestPark Capital George Notter - Jefferies Ryan Koontz - Needham & Company Bill Dezellem - Tieton Capital Management Operator Ladies and gentlemen, thank you for standing by, and welcome to ADTRAN Holdings, ...

Financial Data and Key Metrics Changes - Q1 2023 revenue was $323.9 million, up 109.6% year-over-year but down 9.6% quarter-over-quarter, missing the guidance range of $355 million to $375 million by 8.8% [15][16] - Non-GAAP gross margin was 37.3%, an increase of 200 basis points year-over-year but a decrease of 180 basis points sequentially [17] - Non-GAAP operating loss was $5.2 million, translating to a non-GAAP operating margin of negative 1.6%, compared to positive 1% in Q1 2022 [18] Business Line Data and Key Metrics Changes - The Network Solutions segment accounted for 87.2% of revenues in Q1 2023, down from 89.6% in Q1 2022 [15] - Optical Networking Solutions contributed 45.6% of revenue, up 3.9% quarter-over-quarter, while Access & Aggregation revenue share was 29.9%, slightly down 1% year-over-year [16] - Subscriber Solutions category was up 39.9% year-over-year but down 34.1% quarter-over-quarter due to inventory management issues [15][16] Market Data and Key Metrics Changes - Domestic revenue grew by 32.7% year-over-year, while international revenue increased by 246.9%, making up 59.4% of total revenue [16] - In the U.S. market, there was a 47% quarter-over-quarter growth in fiber access platforms, driven by success in the regional service provider market [10] Company Strategy and Development Direction - The company is focused on long-term growth in fiber networks, with a comprehensive fiber network portfolio built on Optical Network Solutions, Access & Aggregation Solutions, and Subscriber Solutions [8][12] - Management emphasized the importance of integrating teams and processes to enhance cross-selling opportunities within the fiber portfolio [8][12] - The company aims to achieve cost synergies of $52 million, with 40% expected to materialize in 2023 and 60% in 2024 [22] Management's Comments on Operating Environment and Future Outlook - Management noted that while inventory management issues are expected to persist in the near term, the long-term demand for fiber networks remains strong [7][12] - The company is cautious about spending due to current market uncertainties but remains confident in its long-term growth outlook [12][24] - Management highlighted that the supply chain situation is improving, which should positively impact gross margins in the second half of the year [36][25] Other Important Information - The company transitioned CFO roles from Mike Foliano to Uli Dopfer, with a focus on financial performance and operational efficiency [13] - Cash and cash equivalents totaled $136.5 million at quarter-end, with a negative operating cash flow of $19.9 million due to lower earnings and increased working capital [19][20] Q&A Session Summary Question: Can you provide insights on the broadband infrastructure and optical business outlook? - Management acknowledged good performance in the infrastructure business but expressed caution due to unclear inventory levels and adjustments in customer ordering patterns [28][30] Question: What are the current lead times for fiber access and optical products? - Lead times have improved from 52 weeks to approximately 2 to 4 months, although some complex chips still face constraints [42] Question: How is the Mosaic One deployment progressing? - The uptake of Mosaic One has been positive, with 200 service providers adopting the offering, but onboarding remains a challenge [57] Question: Are there any labor constraints affecting fiber deployment? - Labor constraints are more pronounced in Europe, with some projects throttled due to labor availability, while the U.S. market is less impacted [66][67]

Operational Challenges and Financial Risks - The company reported a significant operational challenge following the merger, which may lead to negative synergies and customer loss [11]. - Revenue predictability remains a concern, with potential shortfalls adversely affecting operating results [12]. - The company incurred substantial indebtedness due to the merger, which could impact financial condition and operational results if debt service obligations are not met [11]. - The lengthy sales and approval process for new products may result in revenue fluctuations, affecting overall financial performance [12]. - The ongoing COVID-19 pandemic continues to impact supply chains, which may affect business operations and financial results [15]. - The company is exposed to risks related to currency exchange rate fluctuations, which could harm financial results and cash flows [14]. - The company relies heavily on a limited number of suppliers, which may lead to delays in product delivery and negatively impact customer relations [14]. - The company faces regulatory risks that could adversely impact operations and financial condition due to evolving laws and trade policies [20]. Financial Performance - Total revenue for the three months ended March 31, 2023, was $323,912, a significant increase from $154,518 in the same period of 2022, representing a growth of 109% [28]. - Network Solutions revenue reached $282,418, up from $138,374 year-over-year, indicating a growth of 104% [28]. - Gross profit for the quarter was $87,808, compared to $54,316 in the prior year, reflecting an increase of 61% [28]. - The company reported a net loss of $40,453 for the three months ended March 31, 2023, compared to a net loss of $1,127 in the same period of 2022 [28]. - Operating loss for the quarter was $(49,732), a significant increase from $(68) in the previous year [28]. - The company reported a significant increase in accounts receivable, net, totaling $17,658 thousand, compared to $8,697 thousand in the previous year [40]. - The company reported stock-based compensation expense of $3,812 thousand for the quarter, up from $1,893 thousand in the same quarter of the previous year [40]. - The company reported a loss per common share of $0.44 for Q1 2023, compared to a loss of $0.02 per share in Q1 2022 [28]. Research and Development - The company is focused on research and development to innovate and improve product offerings, which is essential to remain competitive in the telecommunications industry [17]. - Research and development expenses for the quarter were $70,143, up from $26,491 in the same period last year, indicating a growth of 164% [28]. Business Combination and Market Position - Following the business combination with ADVA Optical Networking SE, the company became the sole owner of ADTRAN, Inc. and the majority shareholder of ADVA [43]. - The business combination with ADVA resulted in a total purchase price of $578.3 million, which included $565.5 million for ADVA shares and $12.8 million for equity compensation [55]. - The fair value of net assets acquired from ADVA was $544.2 million, with goodwill recognized at $350.5 million [56]. - The company completed a business combination with ADVA Optical Networking SE, becoming the sole owner and majority shareholder, enhancing its market position [43]. - The company is focused on expanding its market share through the introduction of new products and enhancing existing product functionalities [43]. Equity and Liabilities - Total current assets as of March 31, 2023, were $883,808, slightly up from $882,358 as of December 31, 2022 [25]. - Total liabilities increased to $675,765 as of March 31, 2023, compared to $639,881 at the end of 2022 [25]. - Total equity decreased to $820,162 as of March 31, 2023, from $1,303,613 at the end of 2022 [25]. - As of March 31, 2023, ADVA stockholders' equity ownership percentage was approximately 34.6% [50]. Cash Flow and Investments - Cash flows from operating activities resulted in a net cash used of $19,926 thousand for the quarter, a significant decrease from the net cash provided of $4,869 thousand in the prior year [40]. - The company reported an increase in accounts receivable, net, to $17,658 thousand from $8,697 thousand year-over-year [40]. - Cash and cash equivalents increased to $136,457 thousand as of March 31, 2023, from $108,644 thousand as of December 31, 2022 [25]. Inventory and Assets - Total inventory, net as of March 31, 2023, was $416.3 million, a decrease from $427.5 million as of December 31, 2022 [90]. - Intangible assets totaled $470.3 million as of March 31, 2023, with a net book value of $379.3 million after accumulated amortization of $91.0 million [98]. Restructuring and Compensation - Total restructuring expenses for the three months ended March 31, 2023, amounted to $2.437 million [150]. - The restructuring program initiated in Q4 2022 aims to optimize assets and business processes related to the Business Combination with ADVA [148]. - The company recognized $2.8 million in annual recurring compensation payable to redeemable non-controlling shareholders for the three months ended March 31, 2023 [131]. Accounting and Compliance - The company early adopted ASU 2021-08, which requires acquirers to recognize and measure acquired contract assets and liabilities consistently with the acquiree's pre-acquisition financial statements [51]. - The DPLTA became effective on January 16, 2023, leading to the reclassification of the permanent equity noncontrolling interest to redeemable non-controlling interest [50].

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, 2022 ☐ 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 of Incorporat ...

Financial Data and Key Metrics Changes - ADTRAN's Q4 2022 revenue was $358.3 million, up 132% year-over-year and up 5% quarter-over-quarter, within the guidance range of $355 to $375 million [18] - Non-GAAP gross margin for Q4 was 39.1%, improving by 3.7 percentage points year-over-year and 1 percentage point sequentially [20] - Non-GAAP operating profitability was $21.5 million, translating to a non-GAAP operating margin of 6%, compared to 1% in Q4 2021 and 6% in the previous quarter [22] Business Line Data and Key Metrics Changes - Optical Networking Solutions revenue was up 7% quarter-over-quarter, comprising 40% of total revenues, compared to 35% in the previous quarter [19][7] - Subscriber Solutions contributed 34% of revenues, down from 39% in the previous quarter, while Access & Aggregation revenue share was 27% [20] - Revenue from access and aggregation solutions was up 7% quarter-over-quarter, driven by growth in fiber access platforms [8] Market Data and Key Metrics Changes - Domestic revenue grew by 41% year-over-year, while international revenue increased by 310%, making up 60% of total revenue [20] - Non-US optical networking revenue was up 10% quarter-over-quarter, contributing to a 15% increase in overall non-US revenues [7] Company Strategy and Development Direction - The combination with ADVA is expected to enhance product and customer diversity, particularly in the US and Europe, capitalizing on fiber networking growth opportunities [6] - Continued investment in innovation across all segments is anticipated to drive demand for solutions [9] - The launch of the SDX 6330 fiber access platform is expected to significantly contribute to growth, with strong demand from national and regional service providers [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth potential, citing improvements in the semiconductor supply chain and a focus on cost management [15][27] - The company expects Q1 2023 revenues to be between $355 million and $375 million, with a non-GAAP operating margin between 5% and 6.5% [27] - Long-term public and private investments in fiber networks remain strong, with significant funding initiatives planned [15] Other Important Information - The company anticipates total synergy savings of $52 million from the merger, with 43% expected in 2023 and 57% in 2024 [21] - Cash and cash equivalents totaled $108.6 million at the end of Q4, with net inventories at $427.5 million [24][25] Q&A Session Summary Question: Can you break out the revenue contribution from ADVA versus ADTRAN organic? - ADVA contributed $202 million in revenue [29] Question: What is the current impact of supply chain issues on gross margin? - The impact on gross margin was approximately 260 basis points this quarter, down from 350 basis points previously [30] Question: What applications are driving success in Europe? - Success in Europe was broad across metro networks and private networks, driven by upgrades to handle new speeds [36] Question: Can you discuss the Huawei replacement cycle? - The UK is seeing the most activity, with carriers needing to remove non-trusted vendors, which has accelerated awards [41] Question: What is the update on residential SAS and Wi-Fi 6 chip availability? - Demand for residential solutions remains strong, with over 150 carrier customers onboarded [45] Question: What is the strategy for middle-mile in the US? - The introduction of combined company assets has positively impacted buying decisions among US carriers [50] Question: What is the outlook for the tax rate? - The non-GAAP tax rate for 2023 is expected to be in the low to mid-20s percentage range, with less volatility anticipated [58]

ADTRAN Holdings, Inc. (NASDAQ:ADTN) Q2 2022 Earnings Conference Call August 4, 2022 10:30 AM ET Company Participants Tom Stanton - Chief Executive Officer Mike Foliano - Chief Financial Officer Conference Call Participants Michael Genovese - Rosenblatt Securities Paul Essi - William K. Woodruff Paul Silverstein - Cowen Ryan Koontz - Needham & Company Tim Savageaux - Northland Capital Markets Operator Ladies and gentlemen, thank you for standing by and welcome to ADTRAN Holdings’ Second Quarter 2022 Earnings ...