ADTRAN Holdings, Inc. Announces Correction of Q1-Q3 2023 Financial Results

On February 20, 2024, ADTRAN Holdings, Inc., based in Huntsville, Alabama, announced the correction of financial results attributable to minority shareholders of Adtran Networks SE as well as net income and earnings per share for the first through third quarters of 2023. This action follows a determination by the Audit Committee that identified an incorrect presentation of attributable results and net loss per share in the unaudited consolidated financial statements for the periods in question.

The inaccuracies only impact the presentation of amounts below the consolidated net loss line, specifically in the breakdown of net income and loss per share between the company and non-controlling interest. They do not change the reported amounts of consolidated net loss, nor do they affect the company's consolidated balance sheet or cash flow.

The errors stem from the application of the Domination Profit and Loss Transfer Agreement between the company and Adtran Networks recorded on January 16, 2023, ensuring ongoing cash compensation to minority shareholders of Adtran Networks from the 2023 fiscal year onwards. A correction will impact the financial presentations for the first through third quarters of 2023 in the amended quarterly reports on Form 10-Q, expected to be filed prior to the submission of the annual report on Form 10-K for the fiscal year ending December 31, 2023.