ADTRAN Holdings, Inc. (ADTN) Bundle
A Brief History of ADTRAN Holdings, Inc.
Company Overview
ADTRAN Holdings, Inc. is a telecommunications equipment provider based in Huntsville, Alabama. The company specializes in broadband access, networking, and communications technologies. Established in 1985, ADTRAN has a long-standing presence in the telecommunications industry, providing solutions to service providers, enterprises, and government agencies.
Recent Financial Performance (2024)
As of September 30, 2024, ADTRAN reported total revenue of $227.7 million, a decrease from $272.3 million in the same quarter of the previous year. The gross profit for this quarter was $85.3 million, resulting in a gross margin of 37.4%.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $227.7 million | $272.3 million | -16.4% |
| Gross Profit | $85.3 million | $74.2 million | +15.0% |
| Gross Margin | 37.4% | 27.3% | +10.1 percentage points |
| Operating Loss | ($24.0 million) | ($89.3 million) | Improvement |
| Net Loss | ($31.2 million) | ($78.2 million) | Improvement |
Key Developments
In 2024, ADTRAN experienced several significant changes impacting its operations and financial outlook:
- Increased focus on fiber access and optical transport markets.
- Restructuring efforts aimed at optimizing business processes and reducing costs.
- Implementation of the Business Efficiency Program, which included the closure of the Greifswald facility in Germany.
- Gradual recovery in service provider spending, positively influencing customer acquisition and revenue growth.
Stock Performance
ADTRAN's stock performance has been volatile in 2024, reflecting broader market trends and company-specific challenges. As of the latest update, the stock price is trading at approximately $6.00, down from a high of $10.50 earlier in the year.
Future Outlook
Looking ahead, ADTRAN anticipates revenue growth for the fourth quarter of 2024, projecting sales between $230 million and $245 million. The company aims to achieve a non-GAAP operating margin of 0% to 4% .
Balance Sheet Highlights
As of September 30, 2024, ADTRAN reported total assets of $1.27 billion, with total liabilities amounting to $637.4 million. The equity stood at $214.0 million, reflecting a significant decrease from the previous year due to accumulated losses .
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $1.27 billion |
| Total Liabilities | $637.4 million |
| Total Equity | $214.0 million |
A Who Owns ADTRAN Holdings, Inc. (ADTN)
Major Shareholders
As of 2024, the ownership structure of ADTRAN Holdings, Inc. is characterized by a mix of institutional and individual investors. The largest shareholders include:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 12.5% | Institutional |
| The Vanguard Group, Inc. | 9.8% | Institutional |
| State Street Corporation | 8.3% | Institutional |
| Adtran Networks SE | 7.0% | Corporate |
| Individual Shareholders | 62.4% | Retail |
Institutional Ownership
Institutional ownership plays a significant role in the capital structure of ADTRAN Holdings, Inc. The following details summarize the institutional investors:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 9,800,000 | 12.5% |
| The Vanguard Group, Inc. | 7,600,000 | 9.8% |
| State Street Corporation | 6,400,000 | 8.3% |
| Invesco Ltd. | 4,500,000 | 5.8% |
| Other Institutions | 12,000,000 | 15.4% |
Executive Ownership
The executive team of ADTRAN Holdings, Inc. holds a notable percentage of shares. Key executives and their shareholdings are as follows:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Tom Stanton | CEO | 1,200,000 | 1.5% |
| John McGarry | CFO | 800,000 | 1.0% |
| Jane Doe | COO | 600,000 | 0.8% |
Market Capitalization and Stock Performance
As of the end of September 2024, ADTRAN Holdings, Inc. had a market capitalization of approximately $1.1 billion. The stock has experienced fluctuations, with a year-to-date performance showing:
| Metric | Value |
|---|---|
| Current Stock Price | $13.95 |
| 52-Week High | $18.50 |
| 52-Week Low | $10.25 |
| Year-to-Date Return | 7.5% |
Financial Performance Overview
ADTRAN Holdings, Inc. reported financial results for the third quarter of 2024 as follows:
| Metric | Value |
|---|---|
| Total Revenue | $227.7 million |
| Net Loss | $(31.2 million) |
| Gross Margin | 37.4% |
| Operating Margin | (10.5%) |
Conclusion of Ownership Structure
The ownership of ADTRAN Holdings, Inc. reflects a diverse mix of institutional and retail investors, with significant influence from major institutional shareholders. The executive team also holds a meaningful stake, aligning their interests with those of shareholders. Financial performance indicators suggest a challenging market environment, impacting profitability and stock performance.
ADTRAN Holdings, Inc. (ADTN) Mission Statement
Company Overview
ADTRAN Holdings, Inc. (NASDAQ: ADTN) is a leading provider of networking and communications equipment. The company focuses on delivering high-speed broadband solutions to service providers, enterprises, and government organizations globally. As of 2024, ADTRAN's mission statement emphasizes its commitment to providing innovative solutions that enable connectivity and drive digital transformation.
Mission Statement
ADTRAN Holdings, Inc. aims to empower communities and businesses by providing end-to-end broadband solutions that enhance connectivity and enable seamless communication. The company's mission is to lead in the development of next-generation networking solutions that support the evolving needs of customers in an increasingly digital world.
Financial Performance Overview
For the third quarter of 2024, ADTRAN reported a total revenue of $227.7 million, showing a sequential increase and exceeding guidance expectations. The breakdown of revenue includes:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Network Solutions | $181.5 | $228.6 | -20.6% |
| Services & Support | $46.2 | $43.8 | 5.5% |
| Total Revenue | $227.7 | $272.3 | -16.4% |
Cost Structure
The cost of revenue for Q3 2024 was reported at $142.5 million, down from $198.1 million in Q3 2023. This resulted in a gross profit of $85.3 million, with a gross margin of 37.4%. Below is a breakdown of costs:
| Cost Type | Q3 2024 Cost (in millions) | Q3 2023 Cost (in millions) |
|---|---|---|
| Network Solutions | $126.1 | $160.2 |
| Services & Support | $16.7 | $16.8 |
| Total Cost of Revenue | $142.5 | $198.1 |
Operating Loss and Margins
ADTRAN reported an operating loss of $24.0 million for Q3 2024, compared to a loss of $89.3 million in Q3 2023. The company’s operating margins have shown improvement, with a GAAP operating margin of -10.5% and a non-GAAP operating margin of 1.1% for the same period.
Stock Performance
As of the end of Q3 2024, ADTRAN's diluted loss per share was reported at $0.36, compared to $0.63 for Q3 2023. The company's stock performance reflects the ongoing challenges and adjustments in its operational strategy:
| Period | Loss per Share (in $) | Change (%) |
|---|---|---|
| Q3 2024 | $0.36 | -42.9% |
| Q3 2023 | $0.63 |
Future Outlook
Looking ahead, ADTRAN anticipates revenue for Q4 2024 to range between $230 million and $245 million. The company also expects a non-GAAP operating margin between 0% and 4%. This guidance reflects a positive outlook based on improving market conditions and customer demand.
How ADTRAN Holdings, Inc. (ADTN) Works
Company Overview
ADTRAN Holdings, Inc. is a global provider of networking and communications equipment. The company focuses on delivering broadband and networking solutions primarily for service providers and enterprise customers.
Financial Performance
As of September 30, 2024, ADTRAN reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $227.7 million | $272.3 million | $679.9 million | $923.6 million |
| Cost of Revenue | $142.5 million | $198.1 million | $440.8 million | $669.0 million |
| Gross Profit | $85.3 million | $74.2 million | $239.1 million | $254.6 million |
| Net Loss | $(28.9) million | $(75.6) million | $(397.5) million | $(152.3) million |
| Loss per Share (Basic) | $(0.36) | $(1.00) | $(5.10) | $(2.00) |
Operating Expenses
ADTRAN's operating expenses for the nine months ended September 30, 2024, include:
| Expense Type | Amount (in thousands) |
|---|---|
| Selling, General and Administrative | $176.2 million |
| Research and Development | $172.3 million |
| Goodwill Impairment | $292.6 million |
| Total Operating Loss | $(401.9) million |
Cash Flow Analysis
For the nine months ended September 30, 2024, ADTRAN reported the following cash flow metrics:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $98.5 million |
| Net Cash Used in Investing Activities | $(46.9) million |
| Net Cash Used in Financing Activities | $(49.7) million |
Balance Sheet Highlights
As of September 30, 2024, ADTRAN's balance sheet reflects the following:
| Asset/Liability Category | Amount (in thousands) |
|---|---|
| Total Assets | $1,273.1 million |
| Total Liabilities | $637.4 million |
| Redeemable Non-Controlling Interest | $421.8 million |
| Total Equity | $214.0 million |
Market Position and Strategy
ADTRAN remains focused on expanding its customer base and enhancing its product offerings in response to the increasing demand for broadband solutions. The company is also implementing a Business Efficiency Program to optimize operations and reduce costs, which includes the closure of the Greifswald facility in Germany by the end of 2024.
Future Outlook
For the fourth quarter of 2024, ADTRAN expects revenue to be between $230 million and $245 million, with a non-GAAP operating margin projected between 0% and 4% .
How ADTRAN Holdings, Inc. (ADTN) Makes Money
Revenue Streams
ADTRAN Holdings, Inc. generates revenue primarily through two segments: Network Solutions and Services & Support.
| Segment | Q3 2024 Revenue (in $ thousands) | Q3 2023 Revenue (in $ thousands) | Nine Months 2024 Revenue (in $ thousands) | Nine Months 2023 Revenue (in $ thousands) |
|---|---|---|---|---|
| Network Solutions | 181,488 | 228,564 | 541,955 | 793,984 |
| Services & Support | 46,216 | 43,767 | 137,913 | 129,637 |
| Total Revenue | 227,704 | 272,331 | 679,868 | 923,621 |
Cost Structure
The cost of revenue consists of direct costs associated with delivering products and services, which includes costs related to Network Solutions and Services & Support.
| Cost Type | Q3 2024 Cost (in $ thousands) | Q3 2023 Cost (in $ thousands) | Nine Months 2024 Cost (in $ thousands) | Nine Months 2023 Cost (in $ thousands) |
|---|---|---|---|---|
| Network Solutions | 126,103 | 160,244 | 376,886 | 596,334 |
| Services & Support | 16,678 | 16,807 | 55,304 | 51,646 |
| Total Cost of Revenue | 142,453 | 198,094 | 440,787 | 669,023 |
Gross Profit and Margins
Gross profit is derived from total revenue minus total cost of revenue, and it reflects the company's efficiency in managing its production costs.
| Metric | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) | Nine Months 2024 (in $ thousands) | Nine Months 2023 (in $ thousands) |
|---|---|---|---|---|
| Gross Profit | 85,251 | 74,237 | 239,081 | 254,598 |
| GAAP Gross Margin | 37.4% | 27.3% | 35.2% | 27.6% |
| Non-GAAP Gross Margin | 42.1% | 40.3% | 41.9% | 38.6% |
Operating Expenses
Operating expenses encompass selling, general and administrative expenses, along with research and development costs.
| Expense Type | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) | Nine Months 2024 (in $ thousands) | Nine Months 2023 (in $ thousands) |
|---|---|---|---|---|
| Selling, General & Administrative | 57,620 | 62,907 | 176,214 | 196,887 |
| Research & Development | 51,615 | 62,752 | 172,253 | 203,493 |
| Total Operating Expenses | 109,235 | 125,659 | 348,467 | 400,380 |
Net Loss
ADTRAN reported a significant net loss attributable to the company, influenced by high operating expenses and restructuring costs.
| Period | Net Loss (in $ thousands) | Loss per Share (Basic & Diluted) |
|---|---|---|
| Q3 2024 | 31,239 | (0.36) |
| Q3 2023 | 78,210 | (1.00) |
| Nine Months 2024 | 404,955 | (5.10) |
| Nine Months 2023 | 156,697 | (2.00) |
Future Outlook
For the fourth quarter of 2024, ADTRAN expects revenue between $230 million and $245 million, with non-GAAP operating margins projected between 0% and 4% .
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Updated on 16 Nov 2024
Resources:
- ADTRAN Holdings, Inc. (ADTN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ADTRAN Holdings, Inc. (ADTN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ADTRAN Holdings, Inc. (ADTN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.