Adtran Networks SE
ISIN: DE0005103006
WKN: 510300
07 November 2023 02:43AM

EQS-News: Adtran Networks SE reports third quarter 2023 results

Adtran Networks SE · ISIN: DE0005103006 · EQS - Company News
Country: Germany · Primary market: Germany · EQS NID: 1766463

EQS-News: Adtran Networks SE / Key word(s): 9 Month figures
Adtran Networks SE reports third quarter 2023 results

07.11.2023 / 02:43 CET/CEST
The issuer is solely responsible for the content of this announcement.


Adtran Networks SE reports third quarter 2023 results

 

  • Quarterly revenues down 18.9% year-over-year to EUR 145.7 million
  • Pro forma EBIT at EUR 8.7 million (6.0% of revenues)

 

Munich, Germany. November 7, 2023. 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 the third quarter 2023 ended on September 30, 2023. The results have been prepared in accordance with International Financial Reporting Standards (IFRS).

 

Q3 2023 financial summary1

(in thousands of EUR) Q3 Q3 Change Q2 Change        
  2023 2022   2023          
         
Revenues 145,655 179,597 -18.9% 170,188 -14.4%        
Pro forma gross profit 55,183   60,857   -9.3% 60,232 -8.4%        
in % of revenues 37.9% 33.9% 4.0pp 35.4% 2.5pp        
Pro forma EBIT 8,731   11,732   -25.6% 12,092 -27.8%        
in % of revenues 6.0% 6.5% -0.5pp 7.1% -1.1pp        
Operating income2 150   -7,322   102.1% 8,033 -98.1%        
Net income 1,305   881   48.1% 3,288 -60.3%        
         
(in thousands of EUR) Sep. 30
2023
Sep. 30
2022
Change Jun. 30
2023
Change        
Cash and cash equivalents 57,809 61,381 -5.8% 48,595 19.0%        
Net cash (+) / Net debt (-)3 -28,442 -17,434 -63.1% -33,457 15.0%        
                   

 

 

1 Potential difference due to rounding

2 Q3 2023 including EUR 6.3 million, Q2 2023 including EUR 1.7 million extraordinary expenses

3 Q3 2023 including EUR 53.6 million and Q2 2023 including EUR 53.0 million financial liabilities to Adtran Holdings, Inc.

 

Q3 2023 IFRS financial results

Revenue in Q3 2023 was down 14.4% to EUR 145.7 million from EUR 170.2 million in Q2 2023 and was also down 18.9% compared to EUR 179.6 million in Q3 2022. Q3 2023 revenue was impacted by a weakened macroeconomic environment and customers’ ongoing inventory reduction.

 

Pro forma gross profit in Q3 2023 was down 8.4% to EUR 55.2 million (37.9% of revenues) from EUR 60.2 million (35.4% of revenues) in Q2 2023 and decreased by 9.3% from EUR 60.9 million (33.9% of revenues) in the year-ago quarter. The margin increase was due to lower purchasing and transportation costs.

 

Pro forma EBIT in Q3 2023 was EUR 8.7 million (6.0% of revenues), down 27.8% from EUR 12.1 million (7.1% of revenues) in Q2 2023. Compared to the year-ago quarter, pro forma operating income decreased by 25.6% from EUR 11.7 million (6.5% of revenues). The decrease in pro forma EBIT is mainly due to the lower revenue levels, partially offset by the improvement in gross margin.

 

Operating income decreased by 98.1% from EUR 8.0 million in Q2 2023 to EUR 0.2 million in Q3 2023 and increased by 102.1% when compared to an operating loss of EUR 7.3 million in Q3 2022. Operating income for Q3 2023 was impacted by EUR 6.3 million extraordinary expenses (Q2 2023: EUR 1.7 million), which are tied to the synergy program associated with the business combination with Adtran, Inc.

 

Net income was EUR 1.3 million in Q3 2023, down 60.3% compared to EUR 3.3 million in Q2 2023 and up 48.1% compared to EUR 0.9 million in Q3 2022. The sequential decrease in net income was due, in addition to the lower top line, to higher extraordinary charges in Q3 2023.

 

The company’s cash and cash equivalents increased by EUR 9.2 million to EUR 57.8 million compared to EUR 48.6 million at the end of Q2 2023 and decreased by EUR 3.5 million compared to EUR 61.3 million in Q3 2022.

 

The company’s net debt decreased by EUR 5.0 million from EUR 33.5 million in Q2 2023 to EUR 28.4 million in Q3 2023 and increased by EUR 11.0 million from a net debt position of EUR 17.4 million in Q3 2022.

 

Outlook

The company expects for the business year 2023 revenue to decline in the high single-digit to low teens percentage range compared to the business year 2022 and the pro forma EBIT margin to be in the low

single-digit percentage range.

 

Management commentary

“Our Q3 2023 results were in line with our expectations. We anticipate that the ongoing uncertainty affecting customer spending will extend into 2024,” said Tom Stanton, CEO of Adtran Networks SE. “Our strong market share position, particularly in EMEA and our comprehensive portfolio in Metro WDM, purpose-built DCI and access WDM, uniquely position us to benefit when spending returns to normalized levels.”

 

The company will publish its financial results for Q4 and full year 2023 on February 27, 2024.

 

The company is no longer required to and will not publish a nine-month 2023 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. Adtran Networks 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 or the market in the shares of Adtran Networks.

 

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 operating results from one financial period to another. Adtran Networks 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@adva.com

 

For investors

Steven Williams

+49 89 890 665 918

investor-relations@adva.com

 

 



07.11.2023 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.
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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: 1766463

 
End of News EQS News Service

1766463  07.11.2023 CET/CEST

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The most important financial data at a glance
  2018 2019 2020 2021 2022 2023 2024e
Sales1 501,98 556,82 564,96 603,32 712,11 613,67 0,00
EBITDA1,2 64,36 74,19 92,53 115,70 21,86 82,09 0,00
EBITDA-Margin3 12,82 13,32 16,38 19,18 3,07 13,38 0,00
EBIT1,4 14,99 12,00 27,47 45,30 18,11 13,30 0,00
EBIT-Margin5 2,99 2,16 4,86 7,51 2,54 2,17 0,00
Net Profit (Loss)1 7,05 7,05 20,31 59,22 18,13 -14,51 0,00
Net-Margin6 1,40 1,27 3,60 9,82 2,55 -2,36 0,00
Cashflow1,7 60,36 66,89 97,14 123,25 14,84 37,61 0,00
Earnings per share8 0,19 0,14 0,40 1,15 0,35 -0,28 0,05
Dividend per share8 0,00 0,00 0,00 0,00 0,52 0,52 0,52
Quelle: boersengefluester.de and Company information
Explanation

1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de

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INVESTOR-INFORMATION
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Adtran Networks
WKN ISIN Legal Type Marketcap IPO Recommendation Plus Code
510300 DE0005103006 SE 1.037,97 Mio € 29.03.1999 Halten 8FWH4C6X+F6
* * *
PE 2025e PE 10Y-Ø BGFL-Ratio Shiller-PE PB PCF KUV
41,54 20,20 2,06 69,00 2,75 27,60 1,69
Dividends
Dividend '2022
in €
Dividend '2023
in €
Dividend '2024e
in €
Div.-Yield '2024e
in %
0,52 0,52 0,52 2,61%
Financial calendar
Annual General Meeting Q1-figures Q2-figures Q3-figures Annual press conference
28.06.2024 07.05.2024 06.08.2024 07.11.2024 18.04.2024
Performance
Distance 60-days-line Distance 200-days-line Performance YtD Performance 52 weeks IPO
Last Price (EoD)
+0,10%
19,94 €
ATH 159,28 €
+1,32% +1,50% -0,30% -0,80% +211,56%

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