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ADTRAN Reports Narrower-Than-Expected Q4 Loss, Revenues Up Y/Y
ADTNADTRAN (ADTN) ZACKS·2025-02-27 16:10

Core Insights - ADTRAN, Inc. reported strong fourth-quarter 2024 results, with both revenue and earnings exceeding Zacks Consensus Estimates, driven by solid demand in the Network Solutions business [1] - The company's focus on cost optimization and improving its operating model is expected to enhance long-term shareholder returns [1] Financial Performance - For Q4 2024, ADTRAN's net sales increased to 242.9millionfrom242.9 million from 225.5 million year-over-year, surpassing the consensus estimate of 240million[4]−ThecompanyincurredaGAAPnetlossof240 million [4] - The company incurred a GAAP net loss of 45.9 million or 0.58pershare,animprovementfromalossof0.58 per share, an improvement from a loss of 109.9 million or 1.40pershareinthesamequarterlastyear[2]−Non−GAAPnetincomewasreportedat1.40 per share in the same quarter last year [2] - Non-GAAP net income was reported at 45 million, breaking even per share, compared to a loss of 14.5millionor14.5 million or 0.19 per share in the prior year [2] Revenue Breakdown - Network Solutions contributed 197millioninrevenues,upfrom197 million in revenues, up from 180.4 million in the prior-year quarter, reflecting healthy demand trends [5] - Services and Support revenues increased slightly to 45.8millionfrom45.8 million from 45 million year-over-year [5] Annual Performance - For the full year 2024, ADTRAN reported revenues of 922.7million,downfrom922.7 million, down from 1.14 billion in 2023 [4] - The GAAP net loss for 2024 was 441.04millionor441.04 million or 5.67 per share, compared to a loss of 259.34millionor259.34 million or 3.39 per share in 2023 [3] - Non-GAAP net loss for 2024 was 31.3millionor31.3 million or 0.36 per share, an improvement from a loss of 47.3millionor47.3 million or 0.60 per share in 2023 [3] Operational Efficiency - Non-GAAP gross margin improved to 42% from 41.9% in the year-ago quarter, and non-GAAP operating income was 7.9millioncomparedtoanoperatinglossof7.9 million compared to an operating loss of 3.2 million in the prior year [6] Cash Flow and Liquidity - In 2024, ADTRAN generated 103.07millionincashfromoperatingactivities,asignificantincreasefromacashutilizationof103.07 million in cash from operating activities, a significant increase from a cash utilization of 45.6 million in 2023 [7] - As of December 31, 2024, the company had 77.6millionincashandcashequivalents,downfrom77.6 million in cash and cash equivalents, down from 87.16 million in 2023 [8] Future Outlook - For Q1 2025, management expects net sales to be in the range of 237.5millionto237.5 million to 252.5 million, with non-GAAP operating margin anticipated between 0% to 4% [9]