Business
ADTRAN Holdings, Inc. Reports Third Quarter 2023 Financial Results and Announces Business Efficiency Program
Q3 revenue at $272.3 million with sequential improvement in GAAP and non-GAAP operating expenses 15% projected reduction in non-GAAP operating expenses in Q4
About this update from Adtran Holdings, Inc.
[{"type":"text","content":"\n\nQ3 revenue at $272.3 million with sequential improvement in GAAP and non-GAAP operating expenses\n\n\n\n15% projected reduction in non-GAAP operating expenses in Q4 2023 as compared to Q3 2023\n\n\n\nTargeting positive non-GAAP operating margin for the second quarter 2024\n\n\n\nExpected reduction of non-GAAP operating expenses of approximately $90 million for the year 2024 as compared to 2023\n\n\n\nAs part of the capital efficiency program, the Company has decided to suspend its quarterly dividend to reduce interest expense and support its long-term capital plan\n\n\n\nTarget Financial Model: Non-GAAP operating margin to be in the low teens for the full year 2025\n\n\n\n HUNTSVILLE, Ala.--(BUSINESS WIRE)--\nADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (“ADTRAN Holdings” or the “Company”) today announced its financial results for the third quarter of 2023.\n\n\nAs reflected in the preliminary release, revenue for the third quarter was $272.3 million, slightly below the lower end of the guidance range.\n\n\nGAAP gross margin for the quarter was 27.3%, and it was negatively impacted by an inventory write-off of approximately $21.0 million as a result of the exit from certain product lines in connection with our restructuring and the newly implemented and expanded business efficiency program.\n\n\nNon-GAAP gross margin was 40.3%, and it was positively impacted by a more favorable customer and product mix and lower purchasing and transportation costs.\n\n\nGAAP operating margin for the quarter was negative 32.8%, and it was negatively impacted by the exit from certain product lines discussed above and a $37.9 million goodwill impairment charge related to our Services & Support reporting unit. Sequentially, the Company reduced GAAP operating expenses by 8% from $137.2 million in the second quarter 2023 to $125.7 million in the third quarter 2023.\n\n\nNon-GAAP operating margin for the quarter was negative 1.9%, which was at the upper end of the guidance range. The Company reduced non-GAAP operating expenses by 6.3% from $122.7 million in the second quarter 2023 to $114.9 million in the third quarter 2023.\n\n\nGAAP net loss attributable to the Company for the third quarter of 2023 was $72.7 million. Diluted loss per share attributable to the Company for the quarter was $0.93.\n\n\nNon-GAAP net loss attributable to the Compa...