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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _______ to _______

 

Commission File Number: 001-41446

 

ADTRAN Holdings, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

87-2164282

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

901 Explorer Boulevard

Huntsville, Alabama

35806-2807

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (256) 963-8000

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, Par Value $0.01 per share

 

ADTN

 

The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

As of August 7, 2023, the registrant had 78,681,829 shares of common stock, $0.01 par value per share, outstanding.

 

 

 

1


ADTRAN Holdings, Inc.

Quarterly Report on Form 10-Q

For the Three and Six Months Ended June 30, 2023

Table of Contents

 

Item

Number

 

 

 

Page

Number

 

 

Glossary of Selected Terms

 

3

 

 

General

 

4

 

 

Cautionary Note Regarding Forward-Looking Statements

 

4

 

 

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

 

1

 

Financial Statements:

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 – (Unaudited)

 

7

 

 

Condensed Consolidated Statements of (Loss) Income for the three and six months ended June 30, 2023 and 2022 – (Unaudited)

 

8

 

 

Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2023 and 2022 – (Unaudited)

 

9

 

 

Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2023 and 2022 (Unaudited)

 

10

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 – (Unaudited)

 

12

 

 

Notes to Condensed Consolidated Financial Statements – (Unaudited)

 

13

2

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

45

3

 

Quantitative and Qualitative Disclosures About Market Risk

 

63

4

 

Controls and Procedures

 

65

 

 

 

 

 

 

 

PART II. OTHER INFORMATION

 

 

1

 

Legal Proceedings

 

66

1A

 

Risk Factors

 

66

2

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

73

5

 

Other Information

 

73

6

 

Exhibits

 

73

 

 

SIGNATURE

 

77

 

 

 

 

 

 

 

 

 

 

 

 

2


GLOSSARY OF SELECTED TERMS

 

Below are certain acronyms, concepts and defined terms commonly used in our industry and in this Quarterly Report on Form 10-Q, along with their meanings:

 

Acronym/Concept/

 

Defined Term

Meaning

BEAD

Broadband Equity, Access and Deployment Program

CPE

Customer-Premises Equipment

DPLTA

Domination and Profit and Loss Transfer Agreement

DSO

Days Sales Outstanding

E.U.

European Union

EURIBOR

Euro Interbank Offered Rate

IPCEI ME/CT

Important Project of Common European Interest - Microelectronics and Communication Technologies

MSO

Multiple System Operator

ODM

Original Design Manufacturing

OLT

Optical Line Terminal

RNCI

Redeemable Non-Controlling Interest

SaaS

Software as a Service

SEC

Securities and Exchange Commission

Service Provider

Entity that provides voice, data or video services to consumers and businesses

SI

Person or company that specializes in bringing together component subsystems into a whole and ensuring that those subsystems function together

SLA

Service Level Agreement

SMB

Small and Mid-Sized Business

SOFR

Secured Overnight Financing Rate

U.S.

United States of America

VAR

Value-Added Reseller

 

 

3


GENERAL

Unless the context otherwise indicates or requires, references in this Quarterly Report on Form 10-Q to “ADTRAN,” the “Company,” “we,” “us” and “our” refer to ADTRAN, Inc. and its consolidated subsidiaries prior to the merger of Acorn MergeCo, Inc., a subsidiary of ADTRAN Holdings, Inc., with and into ADTRAN, Inc., on July 8, 2022, after which ADTRAN, Inc. became a wholly-owned direct subsidiary of ADTRAN Holdings, Inc. (the “Merger”), and to ADTRAN Holdings, Inc. and its consolidated subsidiaries following the Merger.

On May 24, 2023, at the annual general meeting of the shareholders of ADVA Optical Networking SE, a subsidiary of the Company ("ADVA"), the shareholders of ADVA approved the proposed change of its name to Adtran Networks SE ("Adtran Networks"), which was registered in the commercial register of the local court of Jena, Germany on June 8, 2023. Unless the context otherwise indicates or requires, references in this Quarterly Report on Form 10-Q to “Adtran Networks” refer to Adtran Networks SE (formerly ADVA Optical Networking SE).

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of ADTRAN. ADTRAN and its representatives may from time to time make written or oral forward-looking statements, including statements contained in this report, our other filings with the Securities and Exchange Commission (the “SEC”) and other communications with our stockholders. Any statement that does not directly relate to a historical or current fact is a forward-looking statement. Generally, the words “believe”, “expect”, “intend”, “estimate”, “anticipate”, “would”, “will”, “may”, “might”, “could”, “should”, “can”, “future”, “assume”, “plan”, “seek”, “predict”, “potential”, “objective”, “expect”, “target”, “project”, “outlook”, “forecast” and similar expressions identify forward-looking statements. We caution you that any forward-looking statements made by us or on our behalf are subject to uncertainties and other factors that could affect the accuracy of such statements. Forward-looking statements are based on management’s current expectations, as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, and because they also relate to the future, they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. The following are some of the risks that could affect our financial performance or could cause actual results to differ materially from those expressed or implied in our forward-looking statements:

Risks related to the Business Combination and DPLTA

We may fail to realize the anticipated strategic and financial benefits sought from the Business Combination.
We have experienced operational challenges as a result of the Business Combination and may also experience negative synergies and loss of customers.
The terms of the DPLTA may have a material adverse effect on our financial results and condition.
We are exposed to additional litigation risk and uncertainty with respect to the remaining minority shareholders of Adtran Networks, which litigation may require us to pay a higher purchase price for additional Adtran Networks shares than the amount provided for under the DPLTA.
We have incurred and expect to continue to incur significant costs in connection with the Business Combination and post-closing integration and restructuring efforts.
We incurred a substantial amount of indebtedness in connection with the Business Combination and DPLTA. Our failure to meet our debt service obligations could have a material adverse effect on our business, financial condition and results of operations.
We may be unable to successfully retain and motivate our personnel, including personnel at Adtran Networks.
The terms of our and Adtran Networks' credit agreements restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
Negative publicity related to post-closing integration measures may adversely affect us.

Risks related to our financial results and Company success

Our revenue for a particular period can be difficult to predict, and a shortfall in revenue may harm our operating results.
The lengthy sales and approval process required by Service Providers for new products could result in fluctuations in our revenue.
We depend heavily on sales to certain customers; the loss of any of these customers or a significant project would significantly reduce our revenue and net income.

4


Our exposure to the credit risks of our customers and distributors may make it difficult to collect accounts receivable and could adversely affect our operating results, financial condition and cash flows.
We expect gross margins to continue to vary over time, and our levels of product and services gross margins may not be sustainable.
Our dependence on a limited number of suppliers for certain raw materials, key components and ODM products, combined with supply shortages, have prevented and may continue to prevent us from delivering our products on a timely basis, which has had and may continue to have a material adverse effect on operating results and could have a material adverse effect on customer relations.
We compete in markets that have become increasingly competitive, which may result in reduced gross profit margins and market share.
Our estimates regarding future warranty obligations may change due to product failure rates, installation and shipment volumes, field service repair obligations and other rework costs incurred in correcting product failures. If our estimates change, our liability for warranty obligations may increase or decrease, impacting future cost of revenue.
Managing our inventory is complex and may include write-downs of excess or obsolete inventory.
The continuing growth of our international operations could expose us to additional risks, increase our costs and adversely affect our operating results, financial condition and cash flows.
Our success depends on attracting and retaining key personnel.
If we fail to manage our exposure to worldwide financial and securities markets successfully, our operating results and financial statements could be materially impacted.
The terms of the credit agreement governing our senior credit facility restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
We are exposed to adverse currency exchange rate fluctuations in jurisdictions where we transact in local currency, which could harm our financial results and cash flows.
We will require a significant amount of cash to service our indebtedness, our payment obligations to Adtran Networks shareholders under the DPLTA, and other obligations.
We could be required to recognize impairment charges related to goodwill and other intangible assets.
We may be unable to successfully and effectively manage and integrate acquisitions, divestitures and other significant transactions, which could harm our operating results, business and prospects.

Risks related to our control environment

Breaches of our information systems and cyber-attacks could compromise our intellectual property and cause significant damage to our business and reputation.
We have had to restate our previously issued consolidated financial statements and, as part of that process, have identified a material weakness in our internal control over financial reporting commencing September 30, 2022 and continuing as of the date hereof. If we are unable to develop and maintain effective internal control over financial reporting, we may not be able to accurately report our financial results in a timely manner, which may adversely affect investor confidence in us and may adversely affect our business, financial condition and results of operations.
We may face litigation and other risks as a result of the restatement of our previously issued consolidated financial statements and material weakness in our internal control over financial reporting.

 

Risks related to the telecommunications industry

We must continue to update and improve our products and develop new products to compete and to keep pace with improvements in communications technology.
Our failure or the failure of our contract manufacturers to comply with applicable environmental regulations could adversely impact our results of operations.
If our products do not interoperate with our customers’ networks, installations may be delayed or canceled, which could harm our business.

5


We engage in research and development activities to develop new, innovative solutions and to improve the application of developed technologies, and as a consequence may miss certain market opportunities enjoyed by larger companies with substantially greater research and development efforts and which may focus on more leading-edge development.
Our strategy of outsourcing a portion of our manufacturing requirements to subcontractors located in various international regions may result in us not meeting our cost, quality or performance standards.
Our failure to maintain rights to intellectual property used in our business could adversely affect the development, functionality and commercial value of our products.
Software under license from third parties for use in certain of our products may not continue to be available to us on commercially reasonable terms.
Our use of open source software could impose limitations on our ability to commercialize our products.
We may incur liabilities or become subject to litigation that would have a material effect on our business.
If we are unable to successfully develop and maintain relationships with SIs, Service Providers and enterprise VARs, our revenue may be negatively affected.

Risks related to the Company's stock price

Our operating results may fluctuate in future periods, which may adversely affect our stock price.
The price of our common stock has been volatile and may continue to fluctuate significantly.

Risks related to the regulatory environments in which we do business

We are subject to complex and evolving U.S. and foreign laws, regulations and standards governing the conduct of our business. Violations of these laws and regulations may harm our business, subject us to penalties and to other adverse consequences.
Changes in trade policy in the U.S. and other countries, including the imposition of additional tariffs and the resulting consequences, may adversely impact our gross profits, gross margins, results of operations and financial condition.
New or revised tax regulations, changes in our effective tax rate, recognition of a valuation allowance or assessments arising from tax audits may have an adverse impact on our results.
Central banks’ monetary policy actions and instability in the financial services sector could increase our costs of borrowing money and negatively impact our financial condition and future operations.
Rising inflation could negatively impact our revenues and profitability if increases in the prices of our products and services or a decrease in customer spending result in lower sales.
Expectations relating to environmental, social and governance considerations expose the Company to potential liabilities, increased costs, reputational harm, and other adverse effects on the Company’s business.

The foregoing list of risks is not exclusive. For a more detailed description of the risk factors associated with our business, see Part I, Item 1A of Amendment No. 1 to the Company's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC August 14, 2023, as well as the risk factors set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q. We caution investors that other factors may prove to be important in the future in affecting our operating results. New factors emerge from time to time, and it is not possible for us to predict all of these factors, nor can we assess the impact each factor, or a combination of factors, may have on our business.

You are further cautioned not to place undue reliance on these forward-looking statements because they speak only of our views as of the date that the statements were made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

6


PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ADTRAN Holdings, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except per share amounts)

 

 

 

June 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

124,294

 

 

$

108,644

 

Short-term investments (includes $3,089 and $340 of available-for-sale securities as of
   June 30, 2023 and December 31, 2022, respectively, reported at fair value)

 

 

3,089

 

 

 

340

 

Accounts receivable, less allowance for credit losses of $26 and $49 as of June 30, 2023
   and December 31, 2022, respectively

 

 

239,565

 

 

 

279,435

 

Other receivables

 

 

32,394

 

 

 

32,831

 

Inventory, net

 

 

416,802

 

 

 

427,531

 

Prepaid expenses and other current assets

 

 

33,880

 

 

 

33,577

 

Total Current Assets

 

 

850,024

 

 

 

882,358

 

Property, plant and equipment, net

 

 

115,719

 

 

 

110,699

 

Deferred tax assets

 

 

82,076

 

 

 

67,839

 

Goodwill

 

 

388,163

 

 

 

381,724

 

Intangibles, net

 

 

355,084

 

 

 

401,211

 

Other non-current assets

 

 

60,634

 

 

 

66,998

 

Long-term investments (includes $4,985 and $8,913 of available-for-sale securities as of
   June 30, 2023 and December 31, 2022, respectively, reported at fair value)

 

 

31,238

 

 

 

32,665

 

Total Assets

 

$

1,882,938

 

 

$

1,943,494

 

LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

171,735

 

 

$

237,699

 

Revolving credit agreements outstanding

 

 

10,912

 

 

 

35,936

 

Notes payable

 

 

 

 

 

24,598

 

Unearned revenue

 

 

48,030

 

 

 

41,193

 

Accrued expenses and other liabilities

 

 

26,807

 

 

 

35,235

 

Accrued wages and benefits

 

 

36,843

 

 

 

44,882

 

Income tax payable, net

 

 

15,314

 

 

 

9,032

 

Total Current Liabilities

 

 

309,641

 

 

 

428,575

 

Non-current revolving credit agreement outstanding

 

 

200,000

 

 

 

60,000

 

Deferred tax liabilities

 

 

44,614

 

 

 

61,629

 

Non-current unearned revenue

 

 

24,111

 

 

 

19,239

 

Pension liability

 

 

10,883

 

 

 

10,624

 

Deferred compensation liability

 

 

28,522

 

 

 

26,668

 

Non-current lease obligations

 

 

20,834

 

 

 

22,807

 

Other non-current liabilities

 

 

16,401

 

 

 

10,339

 

Total Liabilities

 

 

655,006

 

 

 

639,881

 

Commitments and contingencies (see Note 20)

 

 

 

 

 

 

Redeemable Non-Controlling Interest

 

 

445,462

 

 

 

 

Equity

 

 

 

 

 

 

Common stock, par value $0.01 per share; 200,000 shares authorized;
   
78,661 shares issued and 78,364 outstanding as of June 30, 2023 and
   
78,088 shares issued and 77,889 shares outstanding as of December 31, 2022

 

 

787

 

 

 

781

 

Additional paid-in capital

 

 

766,428

 

 

 

895,834

 

Accumulated other comprehensive income

 

 

62,208

 

 

 

46,713

 

Retained (deficit) earnings

 

 

(41,010

)

 

 

55,338

 

Treasury stock at cost: 297 and 198 shares as of June 30, 2023
   and December 31, 2022, respectively

 

 

(5,943

)

 

 

(4,125

)

     Non-controlling interest

 

 

 

 

 

309,072

 

Total Equity

 

 

782,470

 

 

 

1,303,613

 

Total Liabilities, Redeemable Non-Controlling Interest and Equity

 

$

1,882,938

 

 

$

1,943,494

 

 

See accompanying notes to condensed consolidated financial statements.

7


ADTRAN Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(Unaudited)

(In thousands, except per share amounts)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

$

283,002

 

 

$

155,992

 

 

$

565,420

 

 

$

294,366

 

Services & Support

 

 

44,376

 

 

 

16,046

 

 

 

85,870

 

 

 

32,190

 

Total Revenue

 

 

327,378

 

 

 

172,038

 

 

 

651,290

 

 

 

326,556

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

216,960

 

 

 

99,921

 

 

 

436,090

 

 

 

190,575

 

Services & Support

 

 

17,865

 

 

 

9,611

 

 

 

34,839

 

 

 

19,159

 

Total Cost of Revenue

 

 

234,825

 

 

 

109,532

 

 

 

470,929

 

 

 

209,734

 

Gross Profit

 

 

92,553

 

 

 

62,506

 

 

 

180,361

 

 

 

116,822

 

Selling, general and administrative expenses

 

 

66,583

 

 

 

27,873

 

 

 

133,980

 

 

 

55,766

 

Research and development expenses

 

 

70,598

 

 

 

26,500

 

 

 

140,741

 

 

 

52,991

 

Operating (Loss) Income

 

 

(44,628

)

 

 

8,133

 

 

 

(94,360

)

 

 

8,065

 

Interest and dividend income

 

 

358

 

 

 

217

 

 

 

662

 

 

 

421

 

Interest expense

 

 

(4,064

)

 

 

(94

)

 

 

(7,351

)

 

 

(124

)

Net investment gain (loss)

 

 

1,262

 

 

 

(4,646

)

 

 

2,514

 

 

 

(8,061

)

Other income, net

 

 

2,494

 

 

 

681

 

 

 

2,191

 

 

 

455

 

(Loss) Income Before Income Taxes

 

 

(44,578

)

 

 

4,291

 

 

 

(96,344

)

 

 

756

 

Income tax benefit (expense)

 

 

8,363

 

 

 

(2,148

)

 

 

19,676

 

 

 

260

 

Net (Loss) Income

 

$

(36,215

)

 

$

2,143

 

 

$

(76,668

)

 

$

1,016

 

Less: Net Loss attributable to non-controlling interest(1)

 

 

(2,881

)

 

 

 

 

 

(8,870

)

 

 

 

Net (Loss) Income attributable to ADTRAN Holdings, Inc.

 

$

(33,334

)

 

$

2,143

 

 

$

(67,798

)

 

$

1,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

78,366

 

 

 

49,123

 

 

 

78,364

 

 

 

49,110

 

Weighted average shares outstanding – diluted

 

 

78,366

 

 

 

49,809

 

 

 

78,364

 

 

 

49,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) earnings per common share attributable to ADTRAN Holdings, Inc. – basic

 

$

(0.43

)

 

$

0.04

 

 

$

(0.87

)

 

$

0.02

 

(Loss) earnings per common share attributable to ADTRAN Holdings, Inc. – diluted

 

$

(0.43

)

 

$

0.04

 

 

$

(0.87

)

 

$

0.02

 

(1)For the three and six months ended June 30, 2023, we have recognized $2.9 million and $5.7 million, respectively, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA and an incremental $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the six months ended June 30, 2023.

See accompanying notes to condensed consolidated financial statements.

8


ADTRAN Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net (Loss) Income

 

$

(36,215

)

 

$

2,143

 

 

$

(76,668

)

 

$

1,016

 

Other Comprehensive Income (Loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized (loss) gain on available-for-sale securities

 

 

(6

)

 

 

(200

)

 

 

64

 

 

 

(924

)

Defined benefit plan adjustments

 

 

23

 

 

 

(87

)

 

 

57

 

 

 

(100

)

Foreign currency translation gain (loss)

 

 

6,940

 

 

 

(2,853

)

 

 

15,618

 

 

 

(3,758

)

Other Comprehensive Income (Loss), net of tax

 

 

6,957

 

 

 

(3,140

)

 

 

15,739

 

 

 

(4,782

)

Less: Comprehensive Income attributable to non-controlling interest, net of tax

 

 

 

 

 

 

 

 

244

 

 

 

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

$

(29,258

)

 

$

(997

)

 

$

(61,173

)

 

$

(3,766

)

 

See accompanying notes to condensed consolidated financial statements.

9


ADTRAN Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

(In thousands, except per share amounts)

 

 

 

Common
Shares

 

 

Common
Stock

 

 

Additional
Paid-In
Capital

 

 

Retained
(Deficit) Earnings

 

 

Treasury
Stock

 

 

Accumulated Other Comprehensive Income

 

 

Non-controlling interest

 

 

Total
Equity

 

Balance as of December 31, 2022

 

 

78,088

 

 

$

781

 

 

$

895,834

 

 

$

55,338

 

 

$

(4,125

)

 

$

46,713

 

 

$

309,072

 

 

$

1,303,613

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(37,274

)

 

 

 

 

 

 

 

 

(3,179

)

 

 

(40,453

)

Reclassification and remeasurement from equity to mezzanine equity for non-controlling interests in Adtran Networks

 

 

 

 

 

 

 

 

(137,620

)

 

 

 

 

 

 

 

 

 

 

 

(306,137

)

 

 

(443,757

)

Other comprehensive income, net of tax