Adtran Networks SE publishes its financial results for the financial year 2023

Adtran Networks SE, a leader in the development of open networking solutions, reported its preliminary financial results for the fourth quarter and full year of 2023, ended December 31, 2023. The results showed a year-over-year revenue decline of 13, 8%, amounting to 613.7 million euros, with a pro forma EBIT of 39.8 million euros, representing 6.5% of revenues.

Fourth Quarter 2023 Financial Summary Reveals Revenue Down 18.7% Compared to Third Quarter 2023 and 39.5% Compared to Fourth Quarter 2022, Mainly Attributed to Uncertain Macroeconomic Environment, Interest Rates high inventory levels among customers, influencing their purchasing behavior. Despite the decrease in revenue, a marginal improvement in pro forma EBIT and gross margin was observed.

The company also reported a net loss of 22.7 million euros for the fourth quarter of 2023 and an annual net loss of 14.5 million euros, compared to a net profit of 18.1 million euros in 2022 The decline in operating cash flow and debt repayment resulted in a significant reduction in cash and cash equivalents and an increase in net debt.

The company nevertheless remains optimistic about fundamental demand, highlighting service providers continuing to expand their fiber footprint and improving bandwidth. Adtran Networks says ongoing cost improvement measures should position the company for success once normal spending returns.