Adtran Holdings, Inc. · NASDAQ:ADTN
Adtran — Needham Security, Networking and Communications Conference 2019
25 slides from Adtran's conference presentation, Nov 12, 2019
Slide 1: Bringing the World Together
BRINGING THE WORLD TOGETHER 2019 © ADTRAN, Inc. General Business
Slide 2: Safe Harbor Statement
Safe Harbor Statement During the course of this meeting, ADTRAN representatives expect to make forward-looking statements, which reflect management’s best judgment, based on factors currently known. However, these statements involve risks and uncertainties, including the successful development and m
Slide 3: The Company
BRINGING THE WORLD TOGETHER THE COMPANY. ▪ Top 3 broadband access supplier ▪ 2 million units per year shipped - N. America, EMEA ▪ Robust and resilient global supply chain ▪ $529M Revenue (2018) ▪ $160M of net cash and marketable securities ▪ 500+ service providers (60+ countries) - Tier 1 Telco, MS
Slide 4: Our Vision
BRINGING THE WORLD TOGETHER OUR VISION. To enable a fully connected world where the power to communicate is available to everyone, everywhere. OUR UNIQUE APPROACH, U N M AT C H E D D O M A I N E X P E R T I S E A N D I N N O VAT I V E P L AT F O R M S , MAKE ANYTHING POSSIBLE. 2019 © ADTRAN, Inc. Ge
Slide 5: Operator Imperatives
BRINGING THE WORLD TOGETHER OPERATOR IMPERATIVES. Communications solution providers are investing in their networks to promote increased subscriber ARPU, retention and acquisition while streamlining their operations. Increase Retain / Expand Reduce ARPU Market Share OpEx 2019 © ADTRAN, Inc. General
Slide 6: Investment Drivers
BRINGING THE WORLD TOGETHER INVESTMENT DRIVERS. Evolution of government funding programs, regulatory broadband policies and merger obligations guide operators’ network investment strategies. Political Government Merger Climate Funding Programs Obligations 2019 © ADTRAN, Inc. General Business
Slide 7: Market Drivers
BRINGING THE WORLD TOGETHER MARKET DRIVERS. Cloud solution providers are driving the demand for bandwidth intensive applications with simple and easy, user-driven interfaces. Streaming Cloud Connected Video Gaming Devices 2019 © ADTRAN, Inc. General Business
Slide 8: The Opportunity
BRINGING THE WORLD TOGETHER THE OPPORTUNITY. Monetize the connected home and business while allowing service providers to build their best networks as they migrate to software-defined access. Connected Home Broadband Network Migration & Business Capacity & Coverage & Support 2019 © ADTRAN, Inc. Gene
Slide 9: Our Strategy
BRINGING THE WORLD TOGETHER OUR STRATEGY. Our unique approach, unmatched domain expertise and innovative platforms simplify your network. Subscriber Broadband Access Service Delivery Experience Innovation Evolution 2019 © ADTRAN, Inc. General Business
Slide 10: Our Business Focus
BRINGING THE WORLD TOGETHER OUR BUSINESS FOCUS. We have aligned our business to support our customers and capture the opportunity. Connected Home & Fiber Access & Professional Services & Enterprise Solutions Fiber Extension Solution Integration 2019 © ADTRAN, Inc. General Business
Slide 11: Fiber Access & Fiber Extension
BROADBAND ACCESS INNOVATION FIBER ACCESS & FIBER EXTENSION Retain / Expand Broadband Fiber Access & Market Share Capacity & Coverage Fiber Extension 2019 © ADTRAN, Inc. General Business
Slide 12: ADTRAN Fiber to the X Portfolio
ADTRAN FIBER TO THE X D. FTTN for CAF (25 Mbps*) PORTFOLIO VDSL2 (Long Reach) E. FTTB for Expansion Central Office/ A. FTTH for Expansion Exchange Mid-Node (Gigabit) (DMT) Gfast (212Mhz) (Gigabit+) GPON, EPON, 10G PON F. FWA for Retention (Gigabit backhaul) B. FTTN for Retention mmWave to the node (
Slide 13: 10G for All Markets
BROADBAND ACCESS INNOVATION 10G FOR ALL MARKETS Alt-Nets Cable-MSOs Tier-1s Integrated Remote Disaggregated 2019 © ADTRAN, Inc. General Business 13
Slide 14: Connected Home & Enterprise Networking
SUBSCRIBER EXPERIENCE CONNECTED HOME & ENTERPRISE NETWORKING Increase Connected Home Connected Home & ARPU & Business Enterprise Networking 2019 © ADTRAN, Inc. General Business
Slide 15: ADTRAN Connected Home Portfolio
Optical Network ADTRAN CONNECTED Terminations (ONT) Indoor, Outdoor, Pluggable HOME PORTFOLIO Single Family Wi-Fi Residential Gateways ▪ 1G Fiber ONT ▪ DSL Modems Integrated GPON, DOCSIS 3.0/3.1, VDSL2 GPON, EPON VDSL2 17A, 35B ▪ 10G Fiber ONT* ▪ Cable Modems XGS-PON, 10G-EPON DOCSIS 3.0, 3.1 Multi-
Slide 16: ADTRAN Enterprise Networking Portfolio
IP Business Gateways ADTRAN ENTERPRISE Converged Voice & Data Platforms NETWORKING PORTFOLIO LAN Switches Converged Voice & Data Platforms ▪ Proven: ▪ Unique: 15+ years of Integrated carrier deployment experience ethernet function ▪ Robust: ▪ Simple: Routers Fixed-Port Converged Access Common Indust
Slide 17: Professional Services & Solution Integration
SERVICE DELIVERY EVOLUTION PROFESSIONAL SERVICES & SOLUTION INTEGRATION Reduce Network Migration Professional Services & OpEx & Support Solution Integration 2019 © ADTRAN, Inc. General Business
Slide 18: ADTRAN Professional Services
SERVICE DELIVERY EVOLUTION ADTRAN PROFESSIONAL SERVICES Network Consulting Maintenance Implementation 100K+ Network Network audit and Hardware and Implementation jobs of consultation, vCTO software support, varying scope. E.G. TURF, services and Network spares and repair Network Upgrades for design,
Slide 19: Solutions Integration SD-Access
SOLUTIONS INTEGRATION SD-Access 2019 © ADTRAN, Inc. General Business
Slide 20: Our Business Focus
BRINGING THE WORLD TOGETHER OUR BUSINESS FOCUS. Our unique approach, unmatched domain expertise and innovative platforms simplify your network. Connected Home & Fiber Access & Professional Services Enterprise Networking Fiber Extension & Solution Integration 2019 © ADTRAN, Inc. General Business
Slide 21: Simplify Your Network
BRINGING THE WORLD TOGETHER SIMPLIFY YOUR NETWORK. Our unique approach, unmatched domain expertise and innovative platforms simplify your network. Subscriber Broadband Access Service Delivery Experience Innovation Evolution 2019 © ADTRAN, Inc. General Business
Slide 22: Revenue Trend
BRINGING THE WORLD TOGETHER REVENUE TREND Revenue 2007 - 2018 $800 $700 $600 USD in Millions $500 $400 $300 $200 $100 $- 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Revenue $477 $502 $484 $605 $717 $621 $642 $630 $600 $636 $666 $529 2019 © ADTRAN, Inc. General Business
Slide 23: Our Financial Model
BRINGING THE WORLD TOGETHER OUR FINANCIAL MODEL Revenue Growth and Customer Diversification with Expense Discipline Target Annual Operating Model: $600M+ revenue Low to mid 40s gross margin $200M operating expense 10%+ operating margin Levers up with revenue growth 2019 © ADTRAN, Inc. General Busine
Slide 24: Q&A
BRINGING THE WORLD TOGETHER Q&A 2019 © ADTRAN, Inc. General Business
Slide 25: General Business
BRINGING THE WORLD TOGETHER 2019 © ADTRAN, Inc. General Business
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