ADTRAN Holdings Announces Preliminary Financial Results for Fourth Quarter 2023

ADTRAN Holdings, Inc. reported preliminary financial results for the fourth quarter of 2023, with revenue of $225.5 million. Compared to the previous quarter, GAAP and non-GAAP operating expenses decreased by 7.6% and 15.1%, respectively.

GAAP gross margin for the fourth quarter was 34.8%, marking an improvement over last year and the prior quarter. This improvement is attributed to lower purchasing and transportation costs, as well as reduced acquisition expenses. Non-GAAP gross margin reached 41.9%, driven by a favorable customer and product mix.

Fourth-quarter GAAP operating margin was -16.7%, impacted by lower revenue and acquisition-related expenses. However, non-GAAP operating margin improved to -1.4%, at the higher end of guidance. Efforts to reduce operational costs contributed to this performance.

GAAP net loss attributable to the company for the quarter was $109.9 million, with a diluted loss per share of $1.40. Non-GAAP net loss was $85.9 million, with a diluted loss per share of $1.09. According to CEO Tom Stanton, despite a difficult economic environment, fundamental demand remains unchanged. The company continues to transform to improve efficiency, in anticipation of a recovery in spending.