ADTRAN Q1 Earnings Beat Estimates on Solid Revenue Growth

Core Viewpoint - ADTRAN, Inc. reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates, driven by solid demand trends and management's focus on cost optimization despite macroeconomic headwinds [1] Financial Performance - The company recorded a GAAP net loss of $10.6 million or 13 cents per share, a significant improvement from a net loss of $326.2 million or 4.14 per share in the prior-year quarter, attributed to top-line growth [2] - Non-GAAP net income was $2.4 million or 3 cents per share, compared to a net loss of $16.1 million or 20 cents per share a year ago, beating the Zacks Consensus Estimate by 5 cents [3] - Total revenues increased to $247.7 million from $226.2 million in the prior-year quarter, surpassing the consensus estimate of $245 million, driven by increased service provider spending and lower customer inventories [3] Segment Performance - Network Solutions contributed $202.2 million in revenues, up from $181.3 million in the prior-year quarter, while Services and Support revenues rose to $45.5 million from $44.9 million a year ago [4] Profitability Metrics - Non-GAAP gross margin improved to 42.6% from 40.7% in the prior-year quarter, and non-GAAP operating income was $10.1 million compared to an operating loss of $10.7 million in the year-ago quarter [5] Cash Flow and Liquidity - ADTRAN generated $41.6 million of cash from operating activities in the first quarter, up from $36.6 million in the prior-year period, with cash and cash equivalents totaling $101.3 million as of March 31, 2025 [6] Outlook - For the second quarter of 2025, ADTRAN expects revenues to be in the range of $247.5 million to $262.5 million, with a non-GAAP operating margin projected between 0% to 4% [7]