Adtran Networks SE announces results for Q1 2024
EQS-News: Adtran Networks SE / Key word(s): Quarter Results
Adtran Networks SE announces results for Q1 2024
07.05.2024 / 06:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Adtran Networks SE announces results for Q1 2024
* Quarterly revenues at EUR 109.6 million
* Pro forma EBIT at negative EUR 3.4 million (-3.1% of revenues)
Munich, Germany. May 7, 2024. Adtran Networks SE (ISIN: DE0005103006, FSE:
ADV), a leading provider of open networking solutions for the delivery of
cloud and mobile services, reported financial results for Q1 2024 ended on
March 31, 2024. The results have been prepared in accordance with
International Financial Reporting Standards (IFRS).
Q1 2024 financial summary1
(in thousands of EUR) Q1 Q1 Chan- Q4 Chang-
ge e
2024 2023 2023
Revenues 109,606 179,358 -38.- 118,470 -7.5%
9%
Pro forma gross profit 39,738 58,371 -31.- 47,491 -16.3-
9% %
in % of revenues 36.3% 32.5% 3.7p- 40.1% -3.8p-
p p
Pro forma EBIT -3,403 9,730 n.a.- 9,257 n.a.%
%
in % of revenues -3.1% 5.4% -8.5- 7.8% -10.9-
pp pp
Operating income2 -8,848 6,227 n.a. -1,108 n.a.
Net income/loss -1,208 3,627 n.a. -22,734 n.a.
(in thousands of EUR) Mar. 31, Mar. 31, Chan- Dec. 31, Chang-
2024 2023 ge 2023 e
Cash and cash 32,943 67,241 -51.- 30,554 7.8%
equivalents 0%
Net cash (+) / Net -35,960 -24,296 -48.- -42,399 15.2%
debt (-)3 0%
1 Potential difference due to rounding
2 Q1 2024 including EUR 3.7 million, Q4 2023 including EUR 7.8 million, Q1
2023 including EUR 1.6 million extraordinary expenses
3 Q1 2024 including EUR 53.2 million, Q4 2023 including EUR 52.8 million, Q1
2023 including EUR 0 million financial liabilities to Adtran Holdings, Inc..
Q1 2024 furthermore including EUR 4.8 million and Q4 2023 including EUR 13.3
million financial liabilities due to the consideration of a new receivables
purchasing program
Q1 2024 IFRS financial results
Revenue in Q1 2024 was down 7.5% to EUR 109.6 million from EUR 118.5 million
in Q4 2023 and was also down 38.9% compared to EUR 179.4 million in Q1 2023.
The uncertain macroeconomic environment, with higher interest rates and
elevated customer inventory levels impacted customer spending behavior.
Pro forma gross profit in Q1 2024 was down 16.3% to EUR 39.7 million (36.3%
of revenues) from EUR 47.5 million (40.1% of revenues) in Q4 2023 and
decreased by 31.9% from EUR 58.4 million (32.5% of revenues) in Q1 2023. The
year-over-year margin increase was due to lower material costs, and a more
favorable customer and product mix. The sequential margin decline was driven
by the customer and product mix in Q1 2024.
Pro forma EBIT in Q1 2024 was negative EUR 3.7 million (-3.1% of revenues)
compared to EUR 9.3 million (7.8% of revenues) in Q4 2023 and EUR 9.7
million (5.4% of revenues) in Q1 2023 respectively.
Operating loss increased from EUR 1.1 million in Q4 2023 to EUR 8.8 million
in Q1 2024 and from an operating income of EUR 6.2 million in Q1 2023. The
operating loss was in particular due to the lower level of revenues and
extraordinary expenses related to the cost efficiency measures.
Net loss was EUR 1.2 million in Q1 2024, compared to a net loss of EUR 22.7
million in Q4 2023 and to a net income of EUR 3.6 million in Q1 2023. The
substantially lower net loss compared to the operating loss is in particular
due to tax effects from the increased usability of loss carryforwards in
future periods.
The company's cash and cash equivalents increased by EUR 2.3 million to EUR
32.9 million compared to EUR 30.6 million at the end of Q4 2023 and
decreased by EUR 24.3 million compared to EUR 67.2 million in Q1 2023.
The company's net debt decreased by EUR 6.4 million from EUR 42.4 million in
Q4 2023 to EUR 36.0 million in Q1 2024 and increased by EUR 11.7 million
from a net debt position of EUR 24.3 million in Q1 2023.
Management commentary
"The significant slowdown in our customers' investment behavior, which was
influenced by the macroeconomic environment and higher interest rates,
combined with the reduction of inventories, continues to present us with
challenges explained Tom Stanton, CEO Adtran Networks SE. "We remain focused
on executing our business efficiency program, and believe that as markets
return to normal, we will be a major beneficiary from the global expansion
of optical networks."
The company will publish its financial results for Q2 2024 on August 6,
2024.
The company is no longer required to and will not publish a three-month 2024
report.
Forward-looking statements
The economic projections and forward-looking statements contained in this
document relate to future facts. Such projections and forward-looking
statements are subject to risks that cannot be foreseen and that are beyond
the control of Adtran Networks SE. Adtran Networks SE is therefore not in a
position to make any representation as to the accuracy of economic
projections and forward-looking statements or their impact on the financial
situation of Adtran Networks SE or the market in the shares of Adtran
Networks SE.
Use of pro forma financial information
Adtran Networks SE provides consolidated pro forma financial results in this
press release solely as supplemental financial information to help investors
and the financial community make meaningful comparisons of Adtran Networks
SE operating results from one financial period to another. Adtran Networks
SE believes that these pro forma consolidated financial results are helpful
because they exclude non-cash charges related to the stock option programs
and amortization and impairment of goodwill and acquisition-related
intangible assets, which are not reflective of the company's operating
results for the period presented. Additionally, non-recurring expenses
relating to M&A restructuring measures are not included. This pro forma
information is not prepared in accordance with IFRS and should not be
considered a substitute for the historical information presented in
accordance with IFRS.
About Adtran Networks SE
Adtran Networks SE is a company founded on innovation and focused on helping
our customers succeed. Our technology forms the building blocks of a shared
digital future and empowers networks across the globe. We're continually
developing breakthrough hardware and software that leads the networking
industry and creates new business opportunities. It's these open
connectivity solutions that enable our customers to deliver the cloud and
mobile services that are vital to today's society and for imagining new
tomorrows. Together, we're building a truly connected and sustainable
future. For more information on how we can help you, please visit us at
www.adva.com.
Published by
Adtran Networks SE, Munich, Germany
www.adva.com
For press
Gareth Spence
+44 1904 699 358
public-relations@adtran.com
For investors
Steven Williams
+49 89 890 665 918
steven.williams@adtran.com
---------------------------------------------------------------------------
07.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
Language: English
Company: Adtran Networks SE
Märzenquelle 1-3
98617 Meiningen-Dreissigacker
Germany
Phone: +49 89 890 665 0
Fax: +49 89 890 665 199
E-mail: IRelation@advaoptical.com
Internet: www.advaoptical.com
ISIN: DE0005103006
WKN: 510300
Indices: SDAX
Listed: Regulated Market in Frankfurt (General Standard);
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1896925
End of News EQS News Service
---------------------------------------------------------------------------
1896925 07.05.2024 CET/CEST