Financial Performance - Revenue for Q1 2025 was 247.7million,anincreaseof100.03, compared to a GAAP diluted loss per share of 0.13[9]−TotalrevenueforQ12025was247.744 million, a 9.3% increase from 226.173millioninQ12024[28]−GrossprofitforQ12025was95.492 million, compared to 70.303millioninQ12024,reflectingasignificantimprovement[28]−NetlossattributabletoADTRANHoldings,Inc.forQ12025was10.633 million, a decrease from a net loss of 326.153millioninQ12024[28]−Non−GAAPgrossprofitforQ12025was105.590 million, with a non-GAAP gross margin of 42.6%[31] - The company reported a net loss attributable to common shareholders of 10,636,000inQ12025,animprovementfromalossof47,885,000 in Q4 2024 and 326,153,000inQ12024[54]−Non−GAAPnetincomeattributabletoADTRANHoldings,Inc.was2,377,000 in Q1 2025, compared to a loss of 1,662,000inQ42024andalossof16,139,000 in Q1 2024[54] Cash Flow and Assets - Net cash provided by operating activities in Q1 2025 was 41.6million,withcashandcashequivalentsincreasingto101.3 million, up 23.8millionsequentially[9]−Cashandcashequivalentsincreasedto101.321 million as of March 31, 2025, up from 77.567millionattheendof2024[30]−Totalassetsroseto1.192 billion as of March 31, 2025, compared to 1.171billionattheendof2024[26]−Thecompanyreportedanetcashprovidedbyoperatingactivitiesof41.642 million for Q1 2025, compared to 36.598millioninQ12024[30]−FortheyearendedDecember31,2024,netcashprovidedbyoperatingactivitieswasreportedas103,039 thousand, after a revision of (31)thousand[24]CostandExpenses−GAAPgrossmarginwas38.548.859 million, down from 60.251millioninQ12024[28]−OperatingexpensesforQ12025were99,144,000, a decrease from 106,365,000inQ42024and411,934,000 in Q1 2024[34] - Non-GAAP operating expenses for Q1 2025 were 95,499,000,comparedto94,018,000 in Q4 2024 and 102,741,000inQ12024[34]−Thecompanyincurredacquisition−relatedexpensesof12,080,000 in Q1 2025, down from 15,274,000inQ42024and15,058,000 in Q1 2024[54] Financial Statement Revisions - The company identified errors in previously issued financial statements, primarily affecting inventory and cost of revenue, but determined these were not material[16] - The company will revise its previously issued 2024 interim financial statements in future filings[19] - For the fiscal quarter ended March 31, 2024, the net loss attributable to ADTRAN Holdings, Inc. was 326,153thousand,reflectingarevisionof1,603 thousand from the previously reported figure[22] - The total cost of revenue for the same quarter was revised to 155,870thousand,anincreaseof1,952 thousand from the previous report[22] - For the fiscal year ended December 31, 2024, the net loss attributable to ADTRAN Holdings, Inc. was 457,355thousand,reviseddownby6,483 thousand[23] - The total cost of revenue for the year ended December 31, 2024, was adjusted to 598,889thousand,reflectinganincreaseof6,483 thousand[23] - As of December 31, 2024, total assets were revised to 1,171,689thousand,adecreaseof7,683 thousand from the previously reported figure[22] - The gross profit for the fiscal year ended December 31, 2024, was revised to 323,831thousand,adecreaseof6,483 thousand from the previous report[23] - The operating loss for the fiscal quarter ended March 31, 2024, was revised to (341,631)thousand,reflectinganincreaseof1,952 thousand[22] - The loss per common share attributable to ADTRAN Holdings, Inc. for the fiscal year ended December 31, 2024, was revised to (5.75),anincreaseof(0.08) from the previously reported figure[23] Future Outlook - The company expects Q2 2025 revenue to be between 247.5millionand262.5 million, with a non-GAAP operating margin forecasted between 0% and 4%[4] - The company will hold a conference call on May 8, 2025, to discuss its preliminary Q1 2025 results[6] Strategic Positioning - The company is well-positioned to capitalize on shifts in trade policy due to its globally diverse supply chain and strong customer relationships[3] Tax and Compliance - The company changed its method of calculating non-GAAP income taxes, applying a blended statutory tax rate of 0% for loss jurisdictions and 30% for other jurisdictions[60] - Prior periods have been adjusted to reflect the new tax calculation method, impacting the reported tax effect of non-GAAP net loss[60] - The tax effect of the adjustment to non-GAAP net loss was previously reported as $5.6 million for the three months ended March 31, 2024[60] Integration and Control - The company is focusing on expanding internal controls at Adtran Networks as part of its integration strategy[59] - The implementation of the DPTLA was completed as of December 31, 2024[59]
ADTRAN (ADTN)2025-05-08 10:30