ADTRAN Announces $293 Million Non-Cash Goodwill Impairment in Q1 2024

ADTRAN Holdings, Inc. revealed it would record a significant non-cash goodwill impairment of approximately $293 million in the first quarter of 2024. The impairment, affecting the Network Solutions segment, was prompted by various factors, including a decline in market capitalization and cautious spending by service providers amid economic uncertainties.

The company confirmed that this impairment would lead to an increased GAAP operating loss for the period but emphasized it would not affect cash flow, GAAP revenue, or non-GAAP operating margins. Furthermore, this accounting adjustment will not result in any immediate or future cash outflow and it does not affect ADTRAN’s compliance with credit agreement covenants.