{"id":4040,"date":"2024-02-27T10:09:49","date_gmt":"2024-02-27T09:09:49","guid":{"rendered":"https:\/\/egoraventures.com\/adtran-holdings-inc-reports-preliminary-fourth-quarter-2023-financial-results\/"},"modified":"2024-03-14T12:08:19","modified_gmt":"2024-03-14T11:08:19","slug":"adtran-holdings-inc-reports-preliminary-fourth-quarter-2023-financial-results","status":"publish","type":"post","link":"https:\/\/egoraventures.com\/en\/adtran-holdings-inc-reports-preliminary-fourth-quarter-2023-financial-results\/","title":{"rendered":"<strong>ADTRAN Holdings, Inc.<\/strong> reports preliminary fourth quarter 2023 financial results"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"4040\" class=\"elementor elementor-4040 elementor-3977\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-467ae7b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"467ae7b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0c3723c\" data-id=\"0c3723c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-df7f17c elementor-widget elementor-widget-spacer\" data-id=\"df7f17c\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 13-03-2024 *\/\n.elementor-column .elementor-spacer-inner{height:var(--spacer-size)}.e-con{--container-widget-width:100%}.e-con-inner>.elementor-widget-spacer,.e-con>.elementor-widget-spacer{width:var(--container-widget-width,var(--spacer-size));--align-self:var(--container-widget-align-self,initial);--flex-shrink:0}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container,.e-con>.elementor-widget-spacer>.elementor-widget-container{height:100%;width:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer{height:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner{height:var(--container-widget-height,var(--spacer-size))}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty,.e-con>.elementor-widget-spacer.elementor-widget-empty{position:relative;min-height:22px;min-width:22px}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon,.e-con>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon{position:absolute;top:0;bottom:0;left:0;right:0;margin:auto;padding:0;width:22px;height:22px}<\/style>\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ec91860 elementor-widget elementor-widget-post-info\" data-id=\"ec91860\" data-element_type=\"widget\" data-widget_type=\"post-info.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<link rel=\"stylesheet\" href=\"https:\/\/egoraventures.com\/wp-content\/plugins\/elementor\/assets\/css\/widget-icon-list.min.css\"><link rel=\"stylesheet\" href=\"https:\/\/egoraventures.com\/wp-content\/plugins\/elementor-pro\/assets\/css\/widget-theme-elements.min.css\">\t\t<ul class=\"elementor-inline-items elementor-icon-list-items elementor-post-info\">\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item elementor-repeater-item-2fff0d2 elementor-inline-item\" itemprop=\"datePublished\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text elementor-post-info__item elementor-post-info__item--type-date\">\n\t\t\t\t\t\t\t\t\t\t<time>27. February 2024<\/time>\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-596ad76 elementor-widget elementor-widget-text-editor\" data-id=\"596ad76\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 13-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<ul><li>Preliminary Q4 revenue at $225.5 million and at mid-point of guidance<\/li><li>Sequential improvement in preliminary GAAP and non-GAAP operating expenses in Q4, with a 7.6% reduction in GAAP operating expenses and a 15.1% reduction in non-GAAP operating expenses respectively<\/li><\/ul><p>HUNTSVILLE, Ala.&#8211;(<a href=\"https:\/\/www.businesswire.com\/portal\/site\/home\/\" target=\"_blank\" rel=\"noopener\">BUSINESS WIRE<\/a>)&#8211; ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (\u201cADTRAN Holdings\u201d or the \u201cCompany\u201d) today announced its preliminary unaudited financial results for the fourth quarter of 2023. All results in this release are approximate due to the preliminary nature of the announcement.<\/p><p>Preliminary GAAP gross margin for the quarter was 34.8% and improved by 483 bps year-over-year and 754 bps quarter-over-quarter.Besides lower purchasing and transportation costs, the main driver for this improvement were lower acquisition-related expenses, amortizations and adjustments. Additionally, the current quarter was negatively impacted by an inventory write-off of $3.3 million compared to a $21 million inventory write-off in Q3 2023.<\/p><p>Preliminary non-GAAP gross margin of 41.9% was positively impacted by a favorable customer and product mix. This compares to 40.3% in Q3 2023 and 39.1% in the year-ago quarter representing an increase of 155 bps sequentially and 277 bps year over year.<\/p><p>Preliminary GAAP operating margin for the fourth quarter was negative 16.7%, and it was negatively impacted by lower revenue and acquisition-related expenses, amortizations and adjustments. The company reduced GAAP operating expenses by 7.6% sequentially and 17.0% year-over-year.<\/p><p>Preliminary non-GAAP operating margin for the quarter was negative 1.4%, which was at the upper end of the guidance range of between -7% and 0% of revenues. The Company reduced non-GAAP operating expenses by 15.1% sequentially and 17.7% year-over-year.<\/p><p>Preliminary GAAP net loss attributable to the Company for the fourth quarter of 2023 was $109.9 million. Preliminary diluted loss per share attributable to the Company for the fourth quarter was $1.40.<\/p><p>Preliminary non-GAAP net loss attributable to the Company for the fourth quarter of 2023 was $85.9 million. Preliminary non-GAAP diluted loss per share attributable to the Company for the fourth quarter was $1.09.<\/p><p>ADTRAN Holdings\u2019 Chairman and Chief Executive Officer Tom Stanton stated, &#8220;Preliminary Q4 revenue came in as expected with non-GAAP profitability at the upper end of our guidance driven by continued gross margin improvements and lower operating expenses. Although revenues continued to remain challenging due to the macroeconomic environment and elevated customer inventories, we believe the fundamental demand landscape remains unchanged. Service providers continue to pursue the same objectives of expanding their fiber footprint and enhancing bandwidth, necessitating global infrastructure buildouts. With the ongoing implementation of our cost improvement measures, we believe that we are transforming into a more streamlined and efficient company. We expect that this will position us well to excel when spending returns to normal levels.&#8221;<\/p><p>The Company confirmed that it will hold a conference call to discuss its preliminary fourth quarter results on Tuesday, February 27, 2024, 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 \u201cADTRAN Holdings Releases 4th Quarter 2023 Financial Results and Earnings Call\u201d, and click on the webcast link.<\/p><p>An online replay of the Company\u2019s conference call, as well as the transcript of the Company&#8217;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 <a href=\"mailto:investor.relations@adtran.com\">investor.relations@adtran.com<\/a>.<\/p><p><strong>Cautionary Note Regarding Forward-Looking Statements<\/strong><\/p><p>Statements contained in this press release which are not historical facts, such as those relating to expectations regarding earnings, expenses and margin; the ability of ADTRAN Holdings\u2019 to reduce expenses in the coming year and the amount thereof through the implementation of the business efficiency program; and ADTRAN Holdings\u2019 strategy and outlook, 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 \u201cbelieve,\u201d \u201cexpect,\u201d \u201cintend,\u201d \u201cestimate,\u201d \u201canticipate,\u201d \u201cwill,\u201d \u201cmay,\u201d \u201ccould\u201d 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<br \/>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\u2019s 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 have caused and may in the future cause actual events or results to differ materially from those estimated by ADTRAN Holdings include, but are not limited to: (i) risks and uncertainties relating to ADTRAN Holdings\u2019 ability to reduce expenditures and the impact of such reductions on its financial results and financial condition; (ii) the risk of fluctuations in revenue due to lengthy sales and approval processes required by major and other service providers for new products, as well as ongoing tighter inventory management of ADTRAN Holdings\u2019 customers; (iii) risks and uncertainties relating to the recent restatements of our previously issued consolidated financial statements and ongoing material weaknesses in our internal control over financial reporting; (iv) risks and uncertainties related to the completed business combination between the Company, ADTRAN, Inc. (\u201cADTRAN\u201d) and Adtran Networks SE (\u201cAdtran Networks\u201d) and subsequent integration efforts;(v) the risk posed by potential breaches of information systems and cyber-attacks (vi) the risk that ADTRAN Holdings may not be able to effectively compete, including through product improvements and development; and (vii) other risks set forth in ADTRAN Holdings\u2019 public filings made with the Securities and Exchange Commission (\u201cSEC\u201d), including its Annual Report on Form 10-K for the year ended December 31, 2022, as amended, and Form 10Q for the quarterly period ended September 30, 2023, as well as its Form 10K for the year ended December 31, 2023 to be filed with the SEC.<\/p><p>Additionally, the financial measures presented herein are preliminary estimates, remain subject to our internal controls and procedures, and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end adjustments. Any variation between the Company\u2019s actual results and the preliminary financial information set forth herein may be material.<\/p><p><strong>Explanation of Use of Non-GAAP Financial Measures<\/strong><\/p><p>Set forth in the tables below are reconciliations of gross profit, gross margin, operating expenses, operating loss, other (expense) income, net (loss) income inclusive of the non-controlling interest, net (loss) income attributable to the Company, net income (loss) attributable to the non-controlling interest, and (loss) earnings per share &#8211; basic and diluted, attributable to the Company, in each case as reported based on generally accepted accounting principles in the United States (\u201cGAAP\u201d), to non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating (loss) income, non-GAAP other (expense) income, non-GAAP net (loss) income inclusive of the non-controlling interest, non-GAAP net (loss) income attributable to the Company, non-GAAP net income attributable to the non-controlling interest, and non-GAAP (loss) earnings per share &#8211; 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 and goodwill impairments, 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.<\/p><p>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.<\/p><p><strong>About Adtran<\/strong><\/p><p>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<br \/>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 <a href=\"https:\/\/www.adtran.com\/\" target=\"_blank\" rel=\"noopener\">Adtran<\/a>, <a href=\"https:\/\/www.linkedin.com\/company\/adtran\" target=\"_blank\" rel=\"noopener\">LinkedIn<\/a> and <a href=\"https:\/\/twitter.com\/Adtran\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>.<\/p><p><strong>Published by<\/strong><br \/>ADTRAN Holdings, Inc.<br \/><a href=\"https:\/\/www.adtran.com\" target=\"_blank\" rel=\"noopener\">www.adtran.com<\/a><\/p><p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-3979\" src=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-1.jpg\" alt=\"\" width=\"900\" height=\"978\" srcset=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-1.jpg 900w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-1-276x300.jpg 276w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-1-768x835.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p><p><img decoding=\"async\" class=\"alignnone size-full wp-image-3981\" src=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-2.jpg\" alt=\"\" width=\"900\" height=\"782\" srcset=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-2.jpg 900w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-2-300x261.jpg 300w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-2-768x667.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p><p><img decoding=\"async\" class=\"alignnone size-full wp-image-3983\" src=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-3.jpg\" alt=\"\" width=\"900\" height=\"1264\" srcset=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-3.jpg 900w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-3-214x300.jpg 214w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-3-729x1024.jpg 729w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-3-768x1079.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3985\" src=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-4.jpg\" alt=\"\" width=\"900\" height=\"510\" srcset=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-4.jpg 900w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-4-300x170.jpg 300w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-4-768x435.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p><p>(1) Includes intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations.<br \/>(2) Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and is expected to be completed in late 2024.<br \/>(3) Includes expenses related to the Company&#8217;s one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE of which $(73) thousand is stock compensation expense for the program.<\/p><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3987\" src=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-5.jpg\" alt=\"\" width=\"900\" height=\"387\" srcset=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-5.jpg 900w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-5-300x129.jpg 300w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-5-768x330.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p><p>(1) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $3.7 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.<br \/>(2) $2.3 million is included in selling, general and administrative expenses and $0.9 million is included in research and development expenses on the condensed consolidated statements of loss.<br \/>(3) $4.6 million is included in selling, general and administrative expenses and $3.2 million is included in research and development expenses on the condensed consolidated statements of loss.<br \/>(4) $1.9 million is included in selling, general and administrative expenses and $0.02 million is included in research and development expenses on the condensed consolidated statements of loss. Includes legal and advisory fees totaling $1.2 million related to a contemplated capital raise transaction that are recorded in selling, general and administrative expenses. Includes expenses totaling $0.4 million related to the Company&#8217;s one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE of which $0.4 million are included in selling, general and administrative expenses and $0.02 million are included in research and development expenses. The integration bonus expense of $0.4 million includes $0.2 million of stock compensation expense. Additionally, includes fees relating to the expansion of internal controls at Adtran Networks and the implementation of the DPLTA.<br \/>(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.<br \/>(6) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business\u00a0 combinations, of which $4.0 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.<br \/>(7) $2.4 million is included in selling, general and administrative expenses and $0.8 million is included in research and development expenses on the condensed consolidated statements of loss.<br \/>(8) $3.4 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.<br \/>(9) $1.4 million is included in selling, general and administrative expenses and $0.1 million is included in research and development expenses on the condensed consolidated statements of loss. Includes fees relating to the expansion of internal controls at Adtran Networks and the implementation of the DPLTA. Additionally, includes expenses related to the Company&#8217;s one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE of which $0.5 million is stock compensation expense for the program.<br \/>(10) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $7.8 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.<br \/>(11) $9.4 million is included in selling, general and administrative expenses and $1.7 million is included in research and development expenses on the condensed consolidated statements of loss. Includes $7.3 million in selling, general and administrative expenses and $0.6 million in research and development expenses for incremental stock-based award modification expense related to the business combination.<br \/>(12) $0.1 million is included in selling, general and administrative expenses and $1.5 million is included in research and development expenses on the condensed consolidated statements of loss.<br \/>(13) $0.2 million is included in selling, general and administrative expenses and ($0.3) million is included in research and development expenses on the condensed consolidated statements of loss. Includes amortization of actuarial losses related to the Company&#8217;s pension plan for employees in certain foreign countries.<br \/>(14) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $15.8 million is included in selling, general and administrative expenses and $1.9 million is included in research and development expenses on the condensed consolidated statements of loss.<br \/>(15) $9.8 million is included in selling, general and administrative expenses and $4.0 million is included in research and development expenses on the condensed consolidated statements of loss.<br \/>(16) $11.6 million is included in selling, general and administrative expenses and $7.7 million is included in research and development expenses on the condensed consolidated statements of loss.<br \/>(17) $4.8 million is included in selling, general and administrative expenses and $0.1 million is included in research and development expenses on the condensed consolidated statements of loss. Includes expenses related to the integration bonus program and fees relating to the expansion of internal controls at Adtran Networks and the implementation of the DPLTA. Additionally, includes legal and advisory fees totaling $1.2 million related to a contemplated capital raise transaction that are recorded in selling, general and administrative expenses.<br \/>(18) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, and certain one-time transaction expenses of which $25.6 million is included in selling, general and administrative expenses and $1.9 million is included in research and development expenses on the condensed consolidated statements of loss.<br \/>(19) $20.8 million is included in selling, general and administrative expenses and $4.6 million is included in research and development expenses on the condensed consolidated statements of loss. Includes $14.6 million in selling, general and administrative expenses and $1.2 million is included in research and development expenses for incremental stock-based award modification expense related to the business combination.<br \/>(20) $0.1 million is included in selling, general and administrative expenses and $1.5 million is included in research and development expenses on the condensed consolidated statements of loss.<br \/>(21) $0.3 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.<\/p><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3989\" src=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-6.jpg\" alt=\"\" width=\"900\" height=\"418\" srcset=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-6.jpg 900w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-6-300x139.jpg 300w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-6-768x357.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p><p>(1) Includes intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations.<br \/>(2) Includes impairment charges related to the abandonment of certain information technology projects due to the business combination.<br \/>(3) Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. These expenses include inventory write down charges totaling approximately $24.3M incurred as a result of the exit from certain product lines in connection with the restructuring program. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and is expected to be completed in late 2024.<br \/>(4) Includes expenses related to the Company&#8217;s one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE. Additionally, includes legal and advisory fees relating to a contemplated capital raise transactions as part of the integration. Includes fees incurred for the expansion of internal controls at Adtran Networks SE and the implementation of the DPTLA.<br \/>(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.<br \/>(6) Includes non-cash goodwill impairment charge related to our Services and Support reporting unit. The impairment primarily resulted from a decrease in projected revenue growth rates and EBITDA margins.<\/p><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3991\" src=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-7.jpg\" alt=\"\" width=\"900\" height=\"340\" srcset=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-7.jpg 900w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-7-300x113.jpg 300w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-7-768x290.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p><p>(1) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees.<br \/>(2) Includes amortization of actuarial losses related to the Company&#8217;s pension plan for employees in certain foreign countries.<\/p><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3993\" src=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-8.jpg\" alt=\"\" width=\"900\" height=\"1302\" srcset=\"https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-8.jpg 900w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-8-207x300.jpg 207w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-8-708x1024.jpg 708w, https:\/\/egoraventures.com\/wp-content\/uploads\/2024\/03\/ADTRAN-PM-02-2024-8-768x1111.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p><p>(1) Represents the non-controlling interest portion of the Company&#8217;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.<br \/>(2) Includes non-cash change in fair value of equity investments held in deferred compensation plans offered to certain employees.<br \/>(3) Includes amortization of actuarial losses related to the Company&#8217;s pension plan for employees in certain foreign countries.<\/p><p>\u00a0<\/p><p><strong>Contacts<\/strong><\/p><p>Investor Services\/Assistance:<br \/>Rhonda Lambert\/256-963-7450<br \/><a href=\"mailto:Investor.relations@adtran.com\">Investor.relations@adtran.com<\/a><\/p><p>Source: ADTRAN Holdings, Inc.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-88bbffb elementor-widget elementor-widget-button\" data-id=\"88bbffb\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"\/en\/press\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon elementor-align-icon-right\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"icon icon-arrow-left\"><\/i>\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Back<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-81512fd elementor-widget elementor-widget-spacer\" data-id=\"81512fd\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Preliminary Q4 revenue at $225.5 million and at mid-point of guidance Sequential improvement in preliminary GAAP and non-GAAP operating expenses in Q4, with a 7.6% reduction in GAAP operating expenses and a 15.1% reduction in non-GAAP operating expenses respectively HUNTSVILLE, Ala.&#8211;(BUSINESS WIRE)&#8211; ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (\u201cADTRAN Holdings\u201d or the \u201cCompany\u201d) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"_links":{"self":[{"href":"https:\/\/egoraventures.com\/en\/wp-json\/wp\/v2\/posts\/4040"}],"collection":[{"href":"https:\/\/egoraventures.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/egoraventures.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/egoraventures.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/egoraventures.com\/en\/wp-json\/wp\/v2\/comments?post=4040"}],"version-history":[{"count":4,"href":"https:\/\/egoraventures.com\/en\/wp-json\/wp\/v2\/posts\/4040\/revisions"}],"predecessor-version":[{"id":4080,"href":"https:\/\/egoraventures.com\/en\/wp-json\/wp\/v2\/posts\/4040\/revisions\/4080"}],"wp:attachment":[{"href":"https:\/\/egoraventures.com\/en\/wp-json\/wp\/v2\/media?parent=4040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/egoraventures.com\/en\/wp-json\/wp\/v2\/categories?post=4040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/egoraventures.com\/en\/wp-json\/wp\/v2\/tags?post=4040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}