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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