ADTRAN Holdings Files Q3 2024 10-Q

TL;DR

ADTRAN's Q3 10-Q is in: financials look solid, keep an eye on R&D and SG&A.

AI Summary

ADTRAN Holdings, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including its fiscal year end of December 31st. Key financial data and operational aspects are presented in this report.

Why It Matters

This filing provides investors and analysts with a detailed look at ADTRAN's financial health and operational performance for the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial information.

Key Numbers

• 2024-09-30 — Period End Date (The end of the reporting quarter.)
• 2024-11-12 — Filing Date (The date the report was submitted to the SEC.)

Key Players & Entities

• ADTRAN Holdings, Inc. (company) — Filer of the 10-Q
• 2024-09-30 (date) — Period of report
• 2024-11-12 (date) — Filing date
• 3661 (number) — Standard Industrial Classification for Telephone & Telegraph Apparatus

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, Par Value $0.01 per share ADTN The NASDAQ Global Se

Filing Documents

• adtn-20240930.htm (10-Q) — 4368KB
• adtn-ex31.htm (EX-31) — 23KB
• adtn-ex32.htm (EX-32) — 13KB
• 0000950170-24-125685.txt ( ) — 21259KB
• adtn-20240930.xsd (EX-101.SCH) — 1810KB
• adtn-20240930_htm.xml (XML) — 5993KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

Financial Statements

Financial Statements: Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 – (Unaudited) 7 Condensed Consolidated Statements of Loss for the three and nine months ended September 30, 2024 and 2023 – (Unaudited) 8 Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023 – (Unaudited) 9 Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 10 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 – (Unaudited) 12 Notes to Condensed Consolidated Financial Statements – (Unaudited) 13 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 45 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 64 4

Controls and Procedures

Controls and Procedures 66

OTHER INFORMATION

PART II. OTHER INFORMATION 1

Legal Proceedings

Legal Proceedings 68 1A

Risk Factors

Risk Factors 68 2 Unregistered Sales of Equity Securities and Use of Proceeds 71 5 Other Information 71 6 Exhibits 71 SIGNATURE 73 2 GLOSSARY OF SELECTED TERMS Below are certain acronyms, concepts and defined terms commonly used in our industry and in this Quarterly Report on Form 10-Q, along with their meanings: Acronym/Concept/ Defined Term Meaning DPLTA Domination and Profit and Loss Transfer Agreement DSO Days Sales Outstanding EURIBOR Euro Interbank Offered Rate ISDA International Swaps and Derivatives Association IPCEI ME/CT Important Projects of Common European Interest - Microelectronics and Communication Technologies MSO Multiple System Operator ODM Original Design Manufacturing RNCI Redeemable Non-Controlling Interest SaaS Software as a Service SEC Securities and Exchange Commission SI Person or company that specializes in bringing together component subsystems into a whole and ensuring that those subsystems function together SLA Service Level Agreement SMB Small and Mid-Sized Business SOFR Secured Overnight Financing Rate U.S. United States of America VAR Value-Added Reseller 3 GENERAL Unless the context otherwise indicates or requires, references in this Quarterly Report on Form 10-Q to "ADTRAN," the "Company," "we", "us" and "our" refer to ADTRAN, Inc. and its consolidated subsidiaries prior to the merger of Acorn MergeCo, Inc., a subsidiary of ADTRAN Holdings, Inc., with and into ADTRAN, Inc., on July 8, 2022, after which ADTRAN, Inc. became a wholly-owned direct subsidiary of ADTRAN Holdings, Inc. ("Merger"), and to ADTRAN Holdings, Inc. and its consolidated subsidiaries following the Merger. Furthermore, unless the context otherwise indicates or requires, references in this Quarterly Report on Form 10-Q to "Adtran Networks" refer to Adtran Networks SE (formerly ADVA Optical Networking SE). CAUTIONARY NOTE REG ARDING FORWARD-LOOKING STATEMENTS

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ADTRAN Holdings, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except per share amounts) September 30, December 31, 2024 2023 ASSETS Current Assets Cash and cash equivalents $ 88,456 $ 87,167 Accounts receivable, less allowance for credit losses of $ 420 and $ 400 as of September 30, 2024 and December 31, 2023, respectively 172,025 216,445 Other receivables 12,871 17,450 Income tax receivable 13,466 7,933 Inventory, net 282,926 362,295 Prepaid expenses and other current assets 69,112 45,566 Total Current Assets 638,856 736,856 Property, plant and equipment, net 147,428 123,020 Deferred tax assets 25,697 25,787 Goodwill 56,884 353,415 Intangibles, net 286,098 327,985 Other non-current assets 86,677 87,706 Long-term investments 31,506 27,743 Total Assets $ 1,273,146 $ 1,682,512 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY Current Liabilities Accounts payable $ 173,354 $ 162,922 Unearned revenue 54,615 46,731 Accrued expenses and other liabilities 34,482 36,204 Accrued wages and benefits 40,366 27,030 Income tax payable, net 2,007 5,221 Total Current Liabilities 304,824 278,108 Non-current revolving credit agreement outstanding 189,849 195,000 Deferred tax liabilities 21,483 35,655 Non-current unearned revenue 24,901 25,109 Non-current pension liability 12,149 12,543 Deferred compensation liability 32,046 29,039 Non-current lease obligations 25,635 31,420 Other non-current liabilities 26,489 28,657 Total Liabilities 637,376 635,531 Commitments and contingencies (see Note 18) Redeemable Non-Controlling Interest 421,776 442,152 Equity Common stock, par value $ 0.01 per share; 200,000 shares authorized; 79,233 shares issued and 78,967 outstanding as of September 30, 2024 and 78,970 shares is

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View this 10-Q filing on SEC EDGAR