ADTRAN (US:ADTN)2025-05-27 23:21Financial Performance - Revenue for Q1 2025 was $247.7 million, an increase of 10% year-over-year, exceeding the midpoint of the outlook[9] - Non-GAAP diluted earnings per share for Q1 2025 was $0.03, compared to a GAAP diluted loss per share of $0.13[9] - Total revenue for Q1 2025 was $247.744 million, a 9.3% increase from $226.173 million in Q1 2024[28] - Gross profit for Q1 2025 was $95.492 million, compared to $70.303 million in Q1 2024, reflecting a significant improvement[28] - Net loss attributable to ADTRAN Holdings, Inc. for Q1 2025 was $10.633 million, a decrease from a net loss of $326.153 million in Q1 2024[28] - Non-GAAP gross profit for Q1 2025 was $105.590 million, with a non-GAAP gross margin of 42.6%[31] - The company reported a net loss attributable to common shareholders of $10,636,000 in Q1 2025, an improvement from a loss of $47,885,000 in Q4 2024 and $326,153,000 in Q1 2024[54] - Non-GAAP net income attributable to ADTRAN Holdings, Inc. was $2,377,000 in Q1 2025, compared to a loss of $1,662,000 in Q4 2024 and a loss of $16,139,000 in Q1 2024[54] Cash Flow and Assets - Net cash provided by operating activities in Q1 2025 was $41.6 million, with cash and cash equivalents increasing to $101.3 million, up $23.8 million sequentially[9] - Cash and cash equivalents increased to $101.321 million as of March 31, 2025, up from $77.567 million at the end of 2024[30] - Total assets rose to $1.192 billion as of March 31, 2025, compared to $1.171 billion at the end of 2024[26] - The company reported a net cash provided by operating activities of $41.642 million for Q1 2025, compared to $36.598 million in Q1 2024[30] - For the year ended December 31, 2024, net cash provided by operating activities was reported as $103,039 thousand, after a revision of $(31) thousand[24] Cost and Expenses - GAAP gross margin was 38.5%, while non-GAAP gross margin reached 42.6%[9] - Research and development expenses for Q1 2025 were $48.859 million, down from $60.251 million in Q1 2024[28] - Operating expenses for Q1 2025 were $99,144,000, a decrease from $106,365,000 in Q4 2024 and $411,934,000 in Q1 2024[34] - Non-GAAP operating expenses for Q1 2025 were $95,499,000, compared to $94,018,000 in Q4 2024 and $102,741,000 in Q1 2024[34] - The company incurred acquisition-related expenses of $12,080,000 in Q1 2025, down from $15,274,000 in Q4 2024 and $15,058,000 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 $326,153 thousand, reflecting a revision of $1,603 thousand from the previously reported figure[22] - The total cost of revenue for the same quarter was revised to $155,870 thousand, an increase of $1,952 thousand from the previous report[22] - For the fiscal year ended December 31, 2024, the net loss attributable to ADTRAN Holdings, Inc. was $457,355 thousand, revised down by $6,483 thousand[23] - The total cost of revenue for the year ended December 31, 2024, was adjusted to $598,889 thousand, reflecting an increase of $6,483 thousand[23] - As of December 31, 2024, total assets were revised to $1,171,689 thousand, a decrease of $7,683 thousand from the previously reported figure[22] - The gross profit for the fiscal year ended December 31, 2024, was revised to $323,831 thousand, a decrease of $6,483 thousand from the previous report[23] - The operating loss for the fiscal quarter ended March 31, 2024, was revised to $(341,631) thousand, reflecting an increase of $1,952 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), an increase of $(0.08) from the previously reported figure[23] Future Outlook - The company expects Q2 2025 revenue to be between $247.5 million and $262.5 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]