Business
ADTRAN, Inc. Pre-Announces Financial Results for the Third Quarter of 2021 and Provides Current Outlook
HUNTSVILLE, Ala.--(BUSINESS WIRE)-- ADTRAN, Inc. (NASDAQ: ADTN) (“ADTRAN” or the “Company”), today announced certain preliminary financial results for the
About this update from Adtran Holdings, Inc.
[{"type":"text","content":" HUNTSVILLE, Ala.--(BUSINESS WIRE)--\nADTRAN, Inc. (NASDAQ: ADTN) (“ADTRAN” or the “Company”), today announced certain preliminary financial results for the third quarter ended September 30, 2021. All figures in this release are approximate due to the preliminary nature of the announcement.\n\nFor the third quarter, revenue is expected to be $138 million, gross margin is expected to be 34.5%, non-GAAP gross margin is expected to be 34.6%, operating loss is expected to be $10.1 million and non-GAAP operating loss is expected to be $2.6 million. This lower gross margin and decreased profitability, as compared to prior guidance, was attributed to approximately $9 million in quantifiable supply chain constraint-related expenses incurred during the quarter. Without these expenses gross margin would be within our third quarter guidance range.\n\nADTRAN Chairman and Chief Executive Officer Tom Stanton stated, “We are experiencing record demand for our solutions with Q3 setting an all-time high for bookings in a quarter. This increased demand comes from a diverse mix of global Tier 1 and regional service providers planning to deploy our fiber access platforms, in-home service delivery platforms and SaaS applications. We expect this growth to accelerate. During the third quarter we secured two additional Tier 1 fiber customers, and previously announced Tier 1 fiber customers significantly increased their bookings for our fiber access platforms. Although our revenue growth and profitability in the near-term are impacted by the supply chain issues, our long-term outlook continues to strengthen given the record demand and the supply outlook.”\n\nThe Company’s overall bookings in the third quarter were up 43% year-over-year with a book-to-bill ratio of 1.43 for the quarter, and 1.34 for the nine months ended September 30, 2021. The increased demand continues to suggest that we are in the early stages of a significant and sustained growth cycle.\n\nBusiness Outlook\n\nADTRAN is working closely with our suppliers and customers to address the near-term supply chain challenges facing the industry. We believe these challenges are peaking during the second half of 2021 and will begin to normalize by mid-2022. Importantly, we expect the impact on ADTRAN’s results to be largely transitory. We are encouraged by the continuation of strong demand and e...