May 22, 2024

Adtran Networks publishes 2023 financial figures: sales decline, losses – also in the US parent company | 02/27/24

Telecom equipment supplier Adtran Networks saw weak demand in the fourth quarter of 2023.

In the October-December period, sales fell by almost 40 percent year-on-year to 118.5 million euros, the SDAX-listed company announced on Tuesday in Munich. Earnings before interest and taxes (EBIT), adjusted for special effects, fell by just over 60 percent to just under 9.3 million euros. This development was not unexpected, as company president Tom Stanton had already reported weak business in the second half of the year in the summer and also sharply cut sales and profit forecasts.

The bottom line was a net loss of €22.7 million in the fourth quarter. In the same period last year, Adtran Networks SE achieved a surplus of approximately €3.8 million. This means that the company also slipped into the red for the full year.

“Sales and profitability were within the expected range in the fourth quarter,” CEO Tom Stanton said. Despite the macroeconomic environment and low customer inventory, demand remains fundamentally healthy. Service providers continued to pursue the same goals as before, namely expanding their fiber capabilities and increasing bandwidth.

Adtran Networks has been part of the US ADTRAND group for some time, and the US group is also listed on SDax due to the acquisition. ADTRAN Holdings also announced its preliminary fourth-quarter results on Tuesday. Sales declined and you made a loss.

American telecommunications equipment company ADTRAN Holdings incurs a loss

In US telecommunications equipment provider Adtran Holdings (

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ADTRAN), a consistently weak business impacts the balance sheet. In the fourth quarter, revenues shrank by 37 percent year-on-year to $225.5 million (208 million euros), the parent company of Adtran Networks announced on Tuesday in Huntsville (US state of Alabama) when it published preliminary figures. Operating margin – the share of operating profit adjusted for special effects in sales – was minus 1.4 percent. The company was expecting between negative seven and zero percent. Adtran Holdings excludes acquisition and group restructuring costs.

The bottom line is that shareholders suffered a loss of approximately $110 million in the fourth quarter. The previous year, the telecommunications equipment supplier reported profits of about $39 million. This means that the company slid deeper into loss territory for the full year. In order to control the problems, the US SDAX-listed company has already begun cost-cutting measures.

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