EQS-News: Adtran Holdings, Inc.: ADTRAN Holdings, Inc. reports second quarter 2023 results

EQS-News: Adtran Holdings, Inc. / Key word(s): Half Year Results
Adtran Holdings, Inc.: Adtran Holdings, Inc. reports second quarter 2023 results

07.08.2023 / 00:50 CET/CEST
The issuer is solely responsible for the content of this announcement.

ADTRAN Holdings, Inc. reports second quarter 2023 results

 

HUNTSVILLE, AL — (August 06, 2023) — ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (“ADTRAN Holdings” or the “Company”) today announced its financial results for the second quarter of 2023. For the quarter, revenue was $327.4 million, up 90% year-over-year and 1% quarter-over-quarter. Net loss attributable to the Company for the second quarter of 2023 was $33.3 million, down 1,655% year-over-year and up 3% quarter-over-quarter. Consequently, diluted loss per share attributable to the Company for the quarter was $0.43, down by 1,175% year-over-year and up 2% quarter-over-quarter. Non-GAAP net income attributable to the Company was $0.1 million, down 99% year-over-year and up 102% quarter-over-quarter. Consequently, non-GAAP diluted earnings per share attributable to the Company was $0.00, down 99% year-over-year and up 102% quarter-over-quarter. Non-GAAP net loss and non-GAAP diluted loss per share exclude acquisition related expenses, amortization, adjustments (consisting of intangible amortization of backlog, developed technology, customer relationships, and trade names acquired in connection with business combinations and amortization of inventory fair value adjustments), stock-based compensation expense, amortization of pension actuarial losses, deferred compensation adjustments, integration expenses, restructuring expenses, changes in valuation allowance related to our deferred tax assets, and the tax effect of these adjustments to net (loss) income. The reconciliations between the non-GAAP net loss measures presented herein and the respective equivalent GAAP financial measures are set forth in the tables provided below.

 

ADTRAN Holdings Chairman and Chief Executive Officer Tom Stanton stated, "Our Q2 2023 results were in line with our expectations. Although new customer acquisitions remain near an all-time high, we anticipate the second half of 2023 will continue to present challenges due to customers optimizing inventory and the macroeconomic environment. Nevertheless, we continue to believe that we are in the early stage of an unprecedented investment cycle and ADTRAN Holdings is well positioned to be one of the largest beneficiaries.”

 

The Company also announced that its Board of Directors declared a cash dividend for the second quarter of 2023. The quarterly cash dividend of $0.09 per common share is to be paid to the Company’s stockholders of record as of the close of business on August 21, 2023. The ex-dividend date is August 20, 2023, and the payment date will be September 5, 2023.

 

The Company confirmed that it will hold a conference call to discuss its second quarter results on Tuesday, August 8, 2023, at 9:30 a.m. Central Time, or 4:30 p.m. Central European Summer Time. ADTRAN Holdings will webcast this conference call. To listen, simply visit our Investor Relations site at investors.ADTRAN.com approximately 10 minutes prior to the start of the call, click on the event “ADTRAN Holdings Releases 2nd Quarter 2023 Financial Results and Earnings Call”, and click on the webcast link.

 

An online replay of the Company’s conference call, as well as the transcript of the Company's conference call, will be available on the Investor Relations site approximately 24 hours following the call and will remain available for at least 12 months. For more information, visit investors.adtran.com or email investor.relations@adtran.com.

 

Cautionary Note Regarding Forward-Looking Statements

 

Statements contained in this press release which are not historical facts, such as those relating to strategy, outlook and financial guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also generally be identified by the use of words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “may,” “could” and similar expressions. In addition, ADTRAN Holdings, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such projections and other forward-looking information speak only as of the date hereof, and ADTRAN Holdings undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise, except to the extent as may be required by law. All such forward-looking statements are necessarily estimates and reflect management’s best judgment based upon current information. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by ADTRAN Holdings include, but are not limited to: (i) risks and uncertainties related to manufacturing and supply chain constraints; (ii) risks and uncertainties related to the completed business combination between the Company, ADTRAN, Inc. (“ADTRAN”) and ADTRAN Networks SE (“ADTRAN Networks”), formerly ADVA Optical Networks SE, including risks related to the ability to successfully integrate ADTRAN’s and ADTRAN Networks’ businesses, the disruption of management time from ongoing business operations due to integration efforts following the business combination, and the risk that ADTRAN Holdings may be unable to achieve expected synergies or that it may take longer or be more costly than expected to achieve those synergies; (iii) the risk of fluctuations in revenue, including due to lengthy sales and approval processes required by major and other service providers for new products and changes in customer demand, as well as tighter inventory management of ADTRAN Holdings’ customers; (iv) the risk posed by potential breaches of information systems and cyber-attacks; (v) the risk that ADTRAN Holdings may not be able to effectively compete, including through product improvements and development; (vi) risks related to ongoing patent litigation; and (vii) other risks set forth in ADTRAN Holdings’ public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2022, as well as its Form 10-Q for the quarter ended March 31, 2023 filed with the SEC.

 

Explanation of Use of Non-GAAP Financial Measures

 

Set forth in the tables below are reconciliations of gross profit, gross margin, operating expenses, operating (loss) income, other income (expense), net (loss) income inclusive of the non-controlling interest, net (loss) income attributable to the Company, net loss attributable to the non-controlling interest, and (loss) earnings per share - basic and diluted, attributable to the Company, in each case as reported based on generally accepted accounting principles in the United States (“GAAP”), to non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP other (expense) income, non-GAAP net (loss) income inclusive of the non-controlling interest, non-GAAP net income (loss) attributable to the Company, non-GAAP net loss attributable to the non-controlling interest, and non-GAAP earnings (loss) per share - basic and diluted, attributable to the Company, respectively. Such non-GAAP measures exclude acquisition related expenses, amortization and adjustments (consisting of intangible amortization of backlog, developed technology, customer relationships, and trade names acquired in connection with business combinations and amortization of inventory fair value adjustments), stock-based compensation expense, amortization of pension actuarial losses, deferred compensation adjustments, integration expenses, restructuring expenses, asset impairments, changes in valuation allowance related to our deferred tax assets, and the tax effect of these adjustments to net income. These measures are used by management in our ongoing planning and annual budgeting processes. Additionally, we believe the presentation of these non-GAAP measures when combined with the presentation of the most directly comparable GAAP financial measure, is beneficial to the overall understanding of ongoing operating performance of the Company.

 

These non-GAAP financial measures are not prepared in accordance with, or an alternative for, GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Additionally, our calculation of non-GAAP measures may not be comparable to similar measures calculated by other companies. 

 

About Adtran

 

ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) is the parent company of ADTRAN, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, ADTRAN empowers communications service providers around the world to manage and scale services that connect people, places and things. ADTRAN solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the largest shareholder of ADTRAN Networks SE, formerly ADVA Optical Networking SE. Find more at ADTRAN, LinkedIn and Twitter.

 

Published by

ADTRAN Holdings, Inc.

www.adtran.com

 

For media

Gareth Spence

+44 1904 699 358

public-relations@adva.com

 

For investors

Steven Williams

+49 89 890 665 918

investor.relations@adtran.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

 

  June 30,     December 31,     2023     2022   Assets           Current Assets           Cash and cash equivalents $ 124,294     $ 108,644   Short-term investments   3,089       340   Accounts receivable, net   239,565       279,435   Other receivables   32,394       32,831   Inventory, net   416,802       427,531   Prepaid expenses and other current assets   33,880       33,577   Total Current Assets   850,024       882,358   Property, plant and equipment, net   115,719       110,699   Deferred tax assets   82,076       67,839     388,163       381,724   Intangibles, net   355,084       401,211   Other non-current assets   60,634       66,998   Long-term investments   31,238       32,665   Total Assets $ 1,882,938     $ 1,943,494               Liabilities, Redeemable Non-Controlling Interest and Equity           Current Liabilities           Accounts payable $ 171,735     $ 237,699   Revolving credit agreements outstanding   210,912       95,936   Notes payable   —       24,598   Unearned revenue   48,030       41,193   Accrued expenses and other liabilities   26,807       35,235   Accrued wages and benefits   36,843       44,882   Income tax payable, net   15,314       9,032   Total Current Liabilities   509,641       488,575   Deferred tax liabilities   44,614       61,629   Non-current unearned revenue   24,111       19,239   Pension liability   10,883       10,624   Deferred compensation liability   28,522       26,668   Non-current lease obligations   20,834       22,807   Other non-current liabilities   16,401       10,339   Total Liabilities   655,006       639,881   Redeemable Non-Controlling Interest   445,462       —             Common stock   787       781   Additional paid-in capital   766,428       895,834   Accumulated other comprehensive income   62,208       46,713   Retained (deficit) earnings   (41,010 )     55,338   Treasury stock   (5,943 )     (4,125 ) Non-controlling interest   —       309,072   Total Equity   782,470       1,303,613   Total Liabilities, Redeemable Non-Controlling Interest and Equity $ 1,882,938     $ 1,943,494  

 

 

 

 

Condensed Consolidated Statements of (Loss) Income

(Unaudited)

(In thousands, except per share amounts)

 

    Three Months Ended     Six Months Ended         June 30,     June 30,         2023     2022     2023     2022     Revenue                           Network Solutions   $ 283,002     $ 155,992     $ 565,420     $ 294,366     Services Support     44,376       16,046       85,870       32,190     Total Revenue     327,378       172,038       651,290       326,556     Cost of Revenue                           Network Solutions     216,960       99,921       436,090       190,575     Services Support     17,865       9,611       34,839       19,159     Total Cost of Revenue     234,825       109,532       470,929       209,734     Gross Profit     92,553       62,506       180,361       116,822     Selling, general and administrative expenses     66,583       27,873       133,980       55,766     Research and development expenses     70,598       26,500       140,741       52,991     Operating (Loss) Income     (44,628 )     8,133       (94,360 )     8,065     Interest and dividend income     358       217       662       421     Interest expense     (4,064 )     (94 )     (7,351 )     (124 )   Net investment gain (loss)     1,262       (4,646 )     2,514       (8,061 )   Other income, net     2,494       681       2,191       455     (Loss) Income Before Income Taxes     (44,578 )     4,291       (96,344 )     756     Income tax benefit (expense)     8,363       (2,148 )     19,676       260     Net (Loss) Income   $ (36,215 )   $ 2,143     $ (76,668 )   $ 1,016     Less: Net Loss attributable to non-controlling interest(1)     (2,881 )     —       (8,870 )     —     Net (Loss) Income attributable to ADTRAN Holdings, Inc.   $ (33,334 )   $ 2,143     $ (67,798 )   $ 1,016                                 Weighted average shares outstanding – basic     78,366       49,123       78,364       49,110     Weighted average shares outstanding – diluted     78,366       49,809       78,364       49,813                                 (Loss) earnings per common share attributable to ADTRAN Holdings, Inc. – basic   $ (0.43 )   $ 0.04     $ (0.87 )   $ 0.02     (Loss) earnings per common share attributable to ADTRAN Holdings, Inc. – diluted   $ (0.43 )   $ 0.04     $ (0.87 )   $ 0.02    

 

(1) For the three and six months ended June 30, 2023, we have recognized $2.9 million and $5.7 million, respectively, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA and an incremental $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the six months ended June 30, 2023.

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

    Six Months Ended       June 30,       2023     2022   Cash flows from operating activities:             Net (loss) income   $ (76,668 )   $ 1,016   Adjustments to reconcile net loss to net cash (used in) provided by operating activities:             Depreciation and amortization     67,467       7,235   Amortization of debt issuance cost     291       —   (Gain) loss on investments     (4,530 )     7,882   Stock-based compensation expense     8,103       3,781   Deferred income taxes     (31,962 )     (93 ) Other, net     130       27   Inventory reserves     20,885       (4,296 ) Changes in operating assets and liabilities:             Accounts receivable, net     40,975       (14,315 ) Other receivables     561       2,606   Inventory     (6,920 )     (53,982 ) Prepaid expenses, other current assets and other assets     7,105       671   Accounts payable     (67,923 )     42,968   Accrued expenses and other liabilities     110       2,179   Income taxes payable, net     6,216       (1,597 ) Net cash used in by operating activities     (36,160 )     (5,918 )               Cash flows from investing activities:             Purchases of property, plant and equipment     (20,118 )     (3,285 ) Proceeds from sales and maturities of available-for-sale investments     2,074       25,071   Purchases of available-for-sale investments     (580 )     (17,002 ) Proceeds from beneficial interests in securitized accounts receivable     1,156       —   Net cash (used in) provided by investing activities     (17,468 )     4,784                 Cash flows from financing activities:             Tax withholdings related to stock-based compensation settlements     (6,315 )     (333 ) Proceeds from stock option exercises     163       636   Dividend payments     (14,156 )     (8,877 ) Proceeds from draw on revolving credit agreements     163,729       28,000   Repayment of revolving credit agreements     (49,155 )     (28,000 ) Non-controlling interest put option buyback     (1,202 )     —   Repayment of notes payable     (24,885 )     —   Net cash provided by (used in) financing activities     68,179       (8,574 )               Net increase (decrease) in cash and cash equivalents     14,551       (9,708 ) Effect of exchange rate changes     1,099       (3,742 ) Cash and cash equivalents, beginning of period     108,644       56,818                 Cash and cash equivalents, end of period   $ 124,294     $ 43,368                 Supplemental disclosure of cash financing activities:             Cash paid for interest   $ 4,719     $ 124   Cash used in operating activities related to operating leases   $ 4,502     $ 915   Supplemental disclosure of non-cash investing activities:             Right-of-use assets obtained in exchange for lease obligations   $ 515     $ 552   Purchases of property, plant and equipment included in accounts payable   $ 2,662     $ 818                

 

Supplemental Information

Reconciliation of Gross Profit and Gross Margin to

 Non-GAAP Gross Profit and Non-GAAP Gross Margin

(Unaudited)

(In thousands)

 

  Three Months Ended     Six Months Ended     June 30,
2023     March 31,
2023     June 30,
2022     June 30,
2023     June 30,
2022   Total Revenue $ 327,378     $ 323,912     $ 172,038     $ 651,290     $ 326,556                                 Cost of Revenue $ 234,825     $ 236,104     $ 109,532     $ 470,929     $ 209,734   Acquisition-related expenses, amortization and adjustments(1)   (33,439 )     (32,578 )     —       (66,017 )     —   Stock-based compensation expense   (335 )     (240 )     (162 )     (575 )     (321 ) Restructuring expenses(2)   —       (76 )     —       (76 )     —   Non-GAAP Cost of Revenue $ 201,051     $ 203,210     $ 109,370     $ 404,261     $ 209,413                                 Gross Profit $ 92,553     $ 87,808     $ 62,506     $ 180,361     $ 116,822   Non-GAAP Gross Profit $ 126,327     $ 120,702     $ 62,668     $ 247,029     $ 117,143                                 Gross Margin   28.3 %     27.1 %     36.3 %     27.7 %     35.8 % Non-GAAP Gross Margin   38.6 %     37.3 %     36.4 %     37.9 %     35.9 %

 

(1) Includes intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations.

(2) Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks.

 

Supplemental Information

Reconciliation of Operating Expenses to Non-GAAP Operating Expenses

(Unaudited)

(In thousands)

 

    Three Months Ended     Six Months Ended         June 30,     March 31,     June 30,     June 30,     June 30,         2023     2023     2022     2023     2022     Operating Expenses   $ 137,181     $ 137,540     $ 54,373     $ 274,721     $ 108,757     Acquisition-related expenses, amortization and adjustments     (4,398 ) (1)   (4,584 ) (6)   (2,123 ) (10)   (8,982 ) (12)   (4,453 ) (16) Stock-based compensation expense     (3,974 ) (2)   (3,458 ) (7)   (1,726 ) (11)   (7,432 ) (13)   (3,460 ) (17) Restructuring expenses     (5,868 ) (3)   (2,361 ) (8)   —       (8,229 ) (14)   (2 )   Pension adjustments     —       —       —       —       —     Integration expenses     (563 ) (4)   (849 ) (9)   —       (1,412 ) (15)   —     Deferred compensation adjustments(5)     307       (394 )     3,737       (87 )     6,433     Non-GAAP Operating Expenses   $ 122,685     $ 125,894     $ 54,261     $ 248,579     $ 107,275    

 

(1) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $3.9 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(2) $2.7 million is included in selling, general and administrative expenses and $1.3 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(3) $1.4 million is included in selling, general and administrative expenses and $4.5 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(4) $0.6 million is included in selling, general and administrative expenses on the condensed consolidated statements of (loss) income. Includes fees relating to the expansion of internal controls at Adtran Networks and the implementation of the DPLTA.

(5) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees, all of which is included in selling, general and administrative expenses on the condensed consolidated statement of (loss) income.

(6) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $4.1 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(7) $2.5 million is included in selling, general and administrative expenses and $1.0 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(8) $2.2 million is included in selling, general and administrative expenses and $0.2 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(9) $0.8 million is included in selling, general and administrative expenses on the condensed consolidated statements of (loss) income. Includes fees relating to the expansion of internal controls at Adtran Networks and the implementation of the DPLTA.

(10) $1.6 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(11) $1.1 million is included in selling, general and administrative expenses and $0.6 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(12) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $8.0 million is included in selling, general and administrative expenses and $1.0 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(13) $5.1 million is included in selling, general and administrative expenses and $2.3 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(14) $3.5 million is included in selling, general and administrative expenses and $4.7 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(15) $1.4 million is included in selling, general and administrative expenses on the condensed consolidated statements of (loss) income. Includes fees relating to the expansion of internal controls at Adtran Networks and the implementation of the DPLTA.

(16) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $3.4 million is included in selling, general and administrative expenses and $1.0 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

(17) $2.3 million is included in selling, general and administrative expenses and $1.2 million is included in research and development expenses on the condensed consolidated statements of (loss) income.

 

Supplemental Information

Reconciliation of Operating (Loss) Income to Non-GAAP Operating Income (Loss)

(Unaudited)

(In thousands)

 

    Three Months Ended     Six Months Ended       June 30,     March,     June 30,     June 30,     June 30,       2023     2023     2022     2023     2022   Operating (Loss) Income   $ (44,628 )   $ (49,732 )   $ 8,133     $ (94,360 )   $ 8,065   Acquisition related expenses, amortization and adjustments(1)     37,837       37,162       2,123       74,999       4,453   Stock-based compensation expense     4,309       3,698       1,888       8,007       3,781   Pension adjustments     —       —       —       —       —   Restructuring expenses(2)     5,868       2,437       —       8,305       2   Integration expenses     563       849       —       1,412       —   Deferred compensation adjustments(3)     (307 )     394       (3,737 )     87       (6,433 ) Non-GAAP Operating Income (Loss)   $ 3,642     $ (5,192 )   $ 8,407     $ (1,550 )   $ 9,868  

 

(1) Includes intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations.

(2) Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks.

(3) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees, all of which is included in selling, general and administrative expenses on the condensed consolidated statement of (loss) income.

 

Supplemental Information

Reconciliation of Other Income (Expense) to Non-GAAP Other Expense

(Unaudited)

(In thousands)

 

  Three Months Ended     Six Months Ended     June 30,
2023     March 31,
2023     June 30,
2022     June 30,
2023     June 30,
2022   Interest and dividend income $ 358     $ 304     $ 217     $ 662     $ 421   Interest expense   (4,064 )     (3,287 )     (94 )     (7,351 )     (124 ) Net investment gain (loss)   1,262       1,252       (4,646 )     2,514       (8,061 ) Other income (expense), net   2,494       (303 )     681       2,191       455   Total Other Income (Expense) $ 50     $ (2,034 )   $ (3,842 )   $ (1,984 )   $ (7,309 ) Deferred compensation adjustments (1)   (1,254 )     (1,250 )     3,596       (2,504 )     5,437   Pension expense(2)   6       7       85       13       174   Non-GAAP Other Expense $ (1,198 )   $ (3,277 )   $ (161 )   $ (4,475 )   $ (1,698 )

 

(1) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees.

(2) Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign countries.

 

 

 

Supplemental Information

 

Reconciliation of Net (Loss) Income inclusive of Non-Controlling Interest to

Non-GAAP Net (Loss) Income inclusive of Non-Controlling Interest

(Unaudited)

 

and

 

Reconciliation of Net Loss attributable to Non-Controlling Interest to

Non-GAAP Net Loss attributable to Non-Controlling Interest

(Unaudited)

 

and

 

Reconciliation of Net (Loss) Income attributable to ADTRAN Holdings, Inc. and

(Loss) Earnings per Common Share attributable to ADTRAN Holdings, Inc. – Basic and Diluted to

Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc. and

Non-GAAP Earnings (Loss) per Common Share attributable to ADTRAN Holdings, Inc. – Basic and Diluted

(Unaudited)

(In thousands, except per share amounts)

 

    Three Months Ended     Six Months Ended       June 30,
2023     March 31,
2023     June 30,
2022     June 30,
2023     June 30,
2022   Net (Loss) Income attributable to ADTRAN Holdings, Inc.   $ (33,334 )   $ (34,464 )   $ 2,143     $ (67,798 )   $ 1,016   Plus: Net Loss attributable to non-controlling interest (1)     (2,881 )     (5,989 )     —       (8,870 )     —   Net (Loss) Income inclusive of non-controlling interest   $ (36,215 )   $ (40,453 )   $ 2,143     $ (76,668 )   $ 1,016   Acquisition related expenses, amortization and adjustments     37,837       37,162       2,123       74,999       4,453   Asset impairments     —       —       —       —       —   Stock-based compensation expense     4,309       3,698       1,888       8,007       3,781   Valuation allowance     (185 )     —       4,289       (185 )     12,368   Deferred compensation adjustments (2)     (1,561 )     (856 )     (140 )     (2,417 )     (995 ) Pension adjustments (3)     6       7       85       13       174   Restructuring expenses     5,868       2,437       —       8,305       2   Integration expenses     563       849       —       1,412       —   Tax effect of adjustments to net (loss) income     (13,426 )     (12,307 )     (680 )     (25,733 )     (1,185 ) Non-GAAP Net (Loss) Income inclusive of non-controlling interest   $ (2,804 )   $ (9,463 )   $ 9,708     $ (12,267 )   $ 19,614   Less: Non-GAAP Net Loss attributable to non-controlling interest (1)     (2,881 )     (4,460 )     —       (7,341 )     —   Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc.   $ 77     $ (5,003 )   $ 9,708     $ (4,926 )   $ 19,614                                   GAAP Net Loss attributable to non-controlling interest (1)   $ (2,881 )   $ (5,989 )   $ —     $ (8,870 )   $ —   Acquisition related expenses, amortization and adjustments     —       1,457       —       1,457       —   Restructuring expenses     —       29       —       29       —   Integration expenses     —       6       —       6       —   Stock-based compensation expense     —       37       —       37       —   Pension adjustments     —       —       —       —       —   Non-GAAP Net Loss attributable to non-controlling interest(1)   $ (2,881 )   $ (4,460 )   $ —     $ (7,341 )   $ —                                   Weighted average shares outstanding – basic     78,366       78,358       49,123       78,364       49,110   Weighted average shares outstanding – diluted     78,366       78,358       49,809       78,364       49,813                                   (Loss) Earnings per common share attributable to ADTRAN Holdings, Inc. – basic   $ (0.43 )   $ (0.44 )   $ 0.04     $ (0.87 )   $ 0.02   (Loss) Earnings per common share attributable to ADTRAN Holdings, Inc. – diluted   $ (0.43 )   $ (0.44 )   $ 0.04     $ (0.87 )   $ 0.02                                   Non-GAAP Earnings (Loss) per common share attributable to ADTRAN – basic   $ 0.00     $ (0.06 )   $ 0.20     $ (0.06 )   $ 0.40   Non-GAAP Earnings (Loss) per common share attributable to ADTRAN – diluted   $ 0.00     $ (0.06 )   $ 0.19     $ (0.06 )   $ 0.39  

 

(1) Represents the non-controlling interest portion of the Company's ownership of Adtran Networks pre-DPLTA and the annual recurring compensation earned by redeemable non-controlling interests and accrued by the Company post-DPLTA.

(2) Includes non-cash change in fair value of equity investments held in deferred compensation plans offered to certain employees.

(3) Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign countries.


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Language: English Company: Adtran Holdings, Inc. 901 Explorer Boulevard 35806 Huntsville United States Internet: www.adtran.com ISIN: US00486H1059 WKN: 892015 Indices: SDAX, TecDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Munich, Stuttgart; Nasdaq EQS News ID: 1696851
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1696851  07.08.2023 CET/CEST