- ADTRAN Holdings, Inc (NASDAQ:ADTN) shares are down Tuesday premarket following its weak first-quarter preliminary revenue results.
- ADTN expects first-quarter revenues of $322 million – $326 million, below its guided range of $355 million – $375 million and also missing the Street view of $364.1 million.
- The lower-than-expected revenue reflected its ongoing supply constraints and the unfavorable impact of customer inventory corrections that weighed on its Subscriber Solutions product line. Consequently, ADTRAN sees a non-GAAP operating margin within -1% to -2.5%.
- ADTRAN Chief Executive Officer Tom Stanton stated, “Growing customer concerns over inventory stocking levels affected our first quarter Subscriber Solutions category. We believe that this over-supply condition in CPE products will continue into the second quarter. Revenue for our Access and Optical Networking products grew sequentially. Supply constraints, however, limited our flexibility to clear past-due backlog across all product categories. We believe that the inventory impact is transitory, and we expect to see some improvement during the second quarter.”
- In March 2023, ADTN disclosed the appointment of Uli Dopfer as its new CFO, effective May 1, 2023, who will replace Mike Foliano following his retirement, effective June 28, 2023.
- Price Action: ADTN shares are trading lower by 19.59% at $12.15 in the premarket session on the last check Tuesday.
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