The following is a summary of the ADTRAN Holdings, Inc. (ADTN) Q1 2024 Earnings Call Transcript:
Financial Performance:
ADTRAN Holdings reported Q1 2024 revenue of $226.2 million, a decrease of 30% year-over-year but a slight increase on a sequential basis.
The company's Network Solutions segment made up 80.1% of the revenues.
Non-GAAP gross margin increased by 429 basis points year-over-year to 41.6%.
Non-GAAP operating loss was recorded at $8.8 million, resulting in a non-GAAP operating margin of negative 3.9%.
The company's Q1 financials show a positive free cash flow and a quarter-over-quarter increase in cash and cash equivalents by $19.6 million.
Business Progress:
63% of ADTRAN's revenues in Q1 2024 came from outside the U.S.
The company made crucial improvements to working capital, reducing their inventories by $40.1 million compared to Q4 2023.
ADTRAN is focusing on maintaining expenses, reducing inventory levels, and becoming a leaner and more efficient firm.
The company anticipates benefiting from the shift in Europe from high-risk vendors to their updated fiber access and optical transport platforms.
A strong Q1 was recorded for the residential sector, indicative of effective inventory management despite cautious spending from service providers.
More details: Adtran IR
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