Adtran Holdings, Inc.: Preliminary Q3 2023 revenues below forecast while non-GAAP operating margin remains within forecast
Huntsville, Alabama (United States of America), October 16, 2023 (CT). While preparing the report for the first nine months of fiscal year 2023, ADTRAN Holdings, Inc. („ADTRAN Holdings“ or the „Company“) (NASDAQ: ADTN; FSE: QH9) today announced that the preliminary U.S. GAAP revenues for the third quarter were below the Company’s forecast, while the Company’s forecast for non-GAAP operating margin was met.
The deviation from the forecast in terms of revenues was primarily due to an unexpected strengthening of the U.S. dollar during the third quarter of fiscal year 2023. The following preliminary figures were reported:
Preliminary U.S. GAAP revenues amounted to $272.3 million, which is 1.0% below the lower end of the forecast range of $275 million to $305 million.
The preliminary non-GAAP operating margin was -1.9%, which falls within the upper half of the forecast range of -5% and 0%.
The number of customers continued to increase in the third quarter of 2023. However, management expects customers to continue to manage their inventory conservatively and adjust their investment budgets in the fourth quarter in response to the changing economic situation.
The final results for the three-month period and the nine-month period ending September 30, 2023 will be published as planned on November 6, 2023 (Central Time) and November 7, 2023 (Central European Time).
The information in this ad hoc announcement is based solely on unaudited consolidated results. The non-GAAP operating margin (which is calculated by dividing the non-GAAP operating loss by U.S. GAAP revenues) is a non-GAAP measure (i.e., an adjusted figure). A reconciliation between the operating loss for the third quarter as reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and the (adjusted) non-GAAP operating loss is provided in the table below.