Adtran Holdings Inc (ADTN) Q3 2024 Earnings Call Highlights: Revenue Growth and Strategic ...

GuruFocus.com11-08

Revenue: $227.7 million in Q3 2024, a sequential increase. Network Solutions Revenue: $181.5 million, 80% of total revenues. Services & Support Revenue: $46.2 million, 20% of total revenues. Access & ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAdtran Holdings Inc (ADTN) Q3 2024 Earnings Call Highlights: Revenue Growth and Strategic ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-08 15:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/adtran-holdings-inc-adtn-q3-072306153.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $227.7 million in Q3 2024, a sequential increase.\nNetwork Solutions Revenue: $181.5 million, 80% of total revenues.\nServices & Support Revenue: $46.2 million, 20% of total revenues.\nAccess & ...</p>\n\n<a href=\"https://finance.yahoo.com/news/adtran-holdings-inc-adtn-q3-072306153.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ADTN","symbol_name":"亚川","start_time":0,"source_url":"https://finance.yahoo.com/news/adtran-holdings-inc-adtn-q3-072306153.html","article_id":"2481145914","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/PEaoBYgno3tn7Zvz7s0shA--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/312b1d7b3e5e07f352df550584bec98c"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481145914","pubTimestamp":1731050586,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $227.7 million in Q3 2024, a sequential increase.Network Solutions Revenue: $181.5 million, 80% of total revenues.Services & Support Revenue: $46.2 million, 20% of total revenues.Access & Aggregation Revenue: $67.1 million, 29% of total revenue, down 4% sequentially.Subscriber Solutions Revenue: $90.1 million, 40% of total revenue, up 9% sequentially.Non-GAAP Gross Margin: 42.1%, an increase of 17 basis points sequentially.Non-GAAP Operating Expenses: $93.3 million, stable compared to Q2 2024.Non-GAAP Operating Profit: $2.5 million, 1.1% of revenues.Operating Cash Flow: $42 million, improved from $19.9 million in Q2 2024.Free Cash Flow: $23.2 million in Q3 2024.Cash and Cash Equivalents: $88.5 million, a decrease of $22.7 million quarter-over-quarter.Q4 2024 Non-GAAP Operating Margin Outlook: Expected between 0% and 4% of revenues.GuruFocus has detected 7 Warning Signs with ADTN.Adtran Holdings Inc  reported a sequential increase in revenue for Q3 2024, reaching $227.7 million","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ADTN":"亚川"},"translate_title":"Adtran Holdings Inc(ADTN)2024年第三季度收益看涨期权亮点：收入增长和战略……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ADTN":1},"content_text":"Revenue: $227.7 million in Q3 2024, a sequential increase.\nNetwork Solutions Revenue: $181.5 million, 80% of total revenues.\nServices & Support Revenue: $46.2 million, 20% of total revenues.\nAccess & Aggregation Revenue: $67.1 million, 29% of total revenue, down 4% sequentially.\nOptical Networking Solutions Revenue: $70.5 million, 31% of total revenues, down 4% sequentially.\nSubscriber Solutions Revenue: $90.1 million, 40% of total revenue, up 9% sequentially.\nNon-GAAP Gross Margin: 42.1%, an increase of 17 basis points sequentially.\nNon-GAAP Operating Expenses: $93.3 million, stable compared to Q2 2024.\nNon-GAAP Operating Profit: $2.5 million, 1.1% of revenues.\nNon-GAAP Diluted Loss Per Share: $0.05 negative.\nOperating Cash Flow: $42 million, improved from $19.9 million in Q2 2024.\nFree Cash Flow: $23.2 million in Q3 2024.\nCash and Cash Equivalents: $88.5 million, a decrease of $22.7 million quarter-over-quarter.\nQ4 2024 Revenue Outlook: Expected to range between $230 million and $245 million.\nQ4 2024 Non-GAAP Operating Margin Outlook: Expected between 0% and 4% of revenues.\n\n\nWarning! GuruFocus has detected 7 Warning Signs with ADTN.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nAdtran Holdings Inc (NASDAQ:ADTN) reported a sequential increase in revenue for Q3 2024, reaching $227.7 million, which was above the midpoint of their guidance.\nThe company achieved positive free cash flow for the third consecutive quarter, generating $23.2 million in Q3 2024.\nNon-GAAP gross margin improved to 42.1%, reflecting ongoing efforts to optimize supply chain and supply-related processes.\nAdtran Holdings Inc (NASDAQ:ADTN) added 13 new carrier customers for its optical networking solutions, indicating strong market demand.\nThe company saw a 10% sequential increase in large service provider sales, with significant growth in both EMEA and APAC regions.\n\n Negative Points \n\nAccess & Aggregation Solutions revenue was down 4% sequentially, particularly due to slower sales in the US.\nThe company is still dealing with excess inventory issues, particularly in the optical business, which may continue to impact performance.\nNon-GAAP operating profit was relatively low at $2.5 million or 1.1% of revenues, indicating room for improvement in profitability.\nCash and cash equivalents decreased by $22.7 million quarter-over-quarter, partly due to dividend payments and share repurchases.\nAdtran Holdings Inc (NASDAQ:ADTN) remains cautious about spending from service provider customers, which could affect future growth projections.\n\n Q & A Highlights \nQ: Can you provide an update on the excess inventory situation, particularly in the optical business? A: Thomas Stanton, CEO: We saw a pickup in bookings, indicating improvement in the inventory situation. A European customer still has excess inventory, expected to clear by early next quarter. Other areas like CPE and Access & Aggregation have largely resolved their inventory issues.\nQ: Could you give an update on the real estate situation, particularly regarding the North and South towers and the East building? A: Thomas Stanton, CEO: We are progressing with interested parties for the sale-leaseback of the East building. The financing environment has improved, and we hope to provide more details next quarter.\nQ: What are the key drivers for growth in North America and EMEA, both for existing business and new wins? A: Thomas Stanton, CEO: Growth is driven by existing customers ramping up and new customers coming online. We have several multinational carriers operationalizing in various countries, with significant opportunities in the US and Europe, including BEAD-related projects.\nQ: How sustainable are the improved trends, and what is the outlook for next year? A: Thomas Stanton, CEO: The improvement is largely driven by existing customers, with a strong push for fiber deployment. We expect continued growth from existing customers, with new customer wins contributing more significantly in 2025.\nQ: What is the impact of the announced acquisition in the optical space, and are you gaining market share? A: Thomas Stanton, CEO: While the acquisition has not yet materially moved our customer base, it has positioned us favorably in RFPs due to potential disruptions in competitors' product lines.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481145914"}