HUNTSVILLE, Ala. -- ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (“ADTRAN Holdings” or the “Company”) today announced certain preliminary unaudited financial results for the quarter ended September 30, 2023. All results in this release are approximate due to the preliminary nature of the announcement. For the third quarter, preliminary revenue was $272.3 million as compared to the Company’s prior guidance range of $275 million to $305 million. The resulting preliminary GAAP operating margin for the third quarter was -30.2%, and it was impacted by certain one-time adjustments that are outlined below. Preliminary non-GAAP operating margin for the third quarter was -1.9%, which is at the upper end of the Company’s guidance.

Total customer count continued to grow in the third quarter of 2023. However, management believes that customers will manage their inventories conservatively and adjust their capital expenditure budgets in the fourth quarter in response to the changed economic environment.

ADTRAN Holdings’ Chairman and Chief Executive Officer, Tom Stanton, stated, "While revenue and GAAP operating margin continue to be challenging as customers remain focused on reducing inventory levels and managing capital expenses, our Q3 non-GAAP operating margin was at the upper end of our guidance, helped by the planned reduction in our operating expenses and improved non-GAAP gross margins. Additionally, the strengthened U.S. dollar had a negative impact on revenue generated outside of the U.S. Moving forward through the end of this year, we will continue to focus on aligning our operating model to reflect the current environment. Finally, during the third quarter, ADTRAN continued to add new customers in both Europe and the U.S., further strengthening our market share position and, with our broad portfolio and geographic reach, uniquely positioning us to benefit from what we anticipate to be a return to normalized spending.”

The final results for the three- and nine-month periods ended September 30, 2023 will be released as planned on November 6, 2023 (Central Time) or November 7, 2023 (Central European Time), respectively.