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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 September 30, 2022

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

N/A

(Former name, Former address and former fiscal year, if changed since last report)

 

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 November 7, 2022, the registrant had 77,655,939 shares of common stock, $0.01 par value per share, outstanding.

 

 

 

 


 

ADTRAN Holdings, Inc.

Quarterly Report on Form 10-Q

For the Three and Nine Months Ended September 30, 2022

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 September 30, 2022 and December 31, 2021 – (Unaudited)

 

7

 

 

Condensed Consolidated Statements of Loss for the three and nine months ended September 30, 2022 and 2021 – (Unaudited)

 

8

 

 

Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2022 and 2021 – (Unaudited)

 

9

 

 

Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2022 and 2021 (Unaudited)

 

10

 

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 – (Unaudited)

 

12

 

 

Notes to Condensed Consolidated Financial Statements – (Unaudited)

 

13

2

 

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

 

41

3

 

Quantitative and Qualitative Disclosures About Market Risk

 

54

4

 

Controls and Procedures

 

55

 

 

 

 

 

 

 

PART II. OTHER INFORMATION

 

 

1

 

Legal Proceedings

 

56

1A

 

Risk Factors

 

56

2

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

66

5

 

Other Information

 

66

6

 

Exhibits

 

66

 

 

SIGNATURE

 

68

 

 

 

 

 

 

 

 

 

 

 

 

 

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

ALM

Active line monitoring

DPLTA

Domination and Profit and Loss Transfer Agreement

DSO

Days Sales Outstanding

ERP

Enterprise Resource Planning Software

E.U.

European Union

EURIBOR

Euro Interbank Offered Rate

LAN

Local Area Network

MSO

Multiple System Operator

ODM

Original Design Manufacturing

OLT

Optical Line Terminal

SaaS

Software as a Service

SEC

Securities and Exchange Commission

Service Provider

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

SMB

Small and Mid-Sized Business

SOFR

Secured Overnight Financing Rate

SI

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

U.K.

United Kingdom

U.S.

United States of America

VAR

Value-Added Reseller

WAN

Wide Area Network

 

 

 

3


 

GENERAL

 

On July 8, 2022, Acorn MergeCo, Inc. (“Merger Sub”), a Delaware corporation and wholly-owned direct subsidiary of ADTRAN Holdings, Inc. (f/k/a Acorn HoldCo, Inc.), merged with and into ADTRAN, Inc., with ADTRAN, Inc. surviving the merger as a wholly-owned direct subsidiary of ADTRAN Holdings, Inc. (the “Merger”). The Merger was consummated pursuant to the Business Combination Agreement, dated as of August 30, 2021 (the “Business Combination Agreement”), by and among ADTRAN Holdings, Inc., ADTRAN, Inc., ADVA Optical Networking SE, a company organized and existing under the laws of Germany (“ADVA”), and Merger Sub. In accordance with the Business Combination Agreement, ADTRAN Holdings, Inc. made a public offer to exchange each issued and outstanding no-par value bearer share of ADVA for 0.8244 shares of common stock, par value $0.01 per share (the “Company Common Stock”), of ADTRAN Holdings, Inc. (the “Exchange Offer” and, together with the Merger, the “Business Combination”). On July 15, 2022 (the “Exchange Offer Settlement Date”), ADTRAN Holdings, Inc. completed the Exchange Offer, in which ADTRAN Holdings, Inc. acquired 33,957,538 million bearer shares of ADVA, or 65.43% of ADVA’s outstanding bearer shares as of the Exchange Offer Settlement Date, in exchange for the issuance of an aggregate of 27,994,595 million shares of Company Common Stock. On October 18, 2022, the Board of Directors of the Company and the management board of ADVA agreed on a final draft of a domination and profit and loss transfer agreement (the “DPLTA”) between the Company, as the controlling company, and ADVA, as the controlled company. The parties’ execution of the DPLTA remains subject to approval of the DPLTA by shareholders of ADVA with 75% of the votes cast in an extraordinary general meeting, which is scheduled to be held on November 30, 2022. If and when signed, effectiveness of the DPLTA is subject to the subsequent registration of the DPLTA with the commercial register (Handelsregister) of the local court (Amtsgericht) at the registered offices of ADVA, with such effectiveness to occur no earlier than January 1, 2023. The Company currently holds 33,957,538 shares of ADVA, representing 65.35% of ADVA’s outstanding shares on September 30, 2022.

 

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 Holdings, Inc. and its consolidated subsidiaries prior to the Merger on July 8, 2022, and to ADTRAN Holdings, Inc. and its consolidated subsidiaries following the Merger.

 

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”, “will”, “may”, “could” 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. 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 may experience operational challenges, negative synergies and loss of customers.
While we have agreed on a final draft of a DPLTA with ADVA, we may not be successful in entering into the DPLTA or the effectiveness of a DPLTA may be delayed as a result of litigation or otherwise, which may have an adverse effect on the ability to realize synergies and cost reductions and the market value of our shares.
If a DPLTA with ADVA is approved by ADVA’s shareholders and becomes effective, the terms of the DPLTA, once effective, 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 ADVA.
Negative publicity related to post-closing integration measures, may adversely affect us.
We have incurred and expect to continue to incur significant transaction fees and costs in connection with the Business Combination and post-closing integration efforts.
We incurred a substantial amount of indebtedness in connection with the Business Combination. Our failure to meet our debt service obligations could have a material adverse effect on our business, financial condition and results of operations.
Risks relating to the business of ADVA may have a significant adverse impact on our business and financial performance.
We may be unable to successfully retain and motivate our personnel, including personnel at ADVA.

 

4


 

The terms of our and ADVA's credit agreements restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
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 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 would significantly reduce our revenue and net income.
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 vary over time, and our levels of product and services gross margins may not be sustainable.
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 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 potential payment obligations to ADVA shareholders under the proposed DPLTA, and other obligations.
We could be required to recognize impairment charges related to goodwill and other intangible assets.

 

Risks related to COVID-19

The ongoing COVID-19 pandemic has impacted and may continue to impact our business, results of operations, financial condition and cash flows, particularly our supply chain and workforce.

 

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.
If we fail to maintain proper and effective internal controls over financial reporting we could have a material weakness in those internal controls, that if not remediated, could materially adversely affect us.

 

5


 

 

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.
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 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, specifically the U.K. and China, 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 could increase our costs of borrowing money and negatively impact our financial condition and future operations.
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 the Company's Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 25, 2022 (the “2021 Form 10-K”), 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)

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

111,099

 

 

$

56,603

 

Restricted cash

 

 

 

 

 

215

 

Short-term investments (includes $803 and $350 of available-for-sale securities as of
   September 30, 2022 and December 31, 2021, respectively, reported at fair value)

 

 

803

 

 

 

350

 

Accounts receivable, less allowance for credit losses of $218 and $0 as of September 30, 2022
   and December 31, 2021, respectively

 

 

302,401

 

 

 

158,742

 

Other receivables

 

 

14,350

 

 

 

11,228

 

Inventory, net

 

 

416,163

 

 

 

139,891

 

Prepaid expenses and other current assets

 

 

30,739

 

 

 

9,296

 

Total Current Assets

 

 

875,555

 

 

 

376,325

 

Property, plant and equipment, net

 

 

104,577

 

 

 

55,766

 

Deferred tax assets, net

 

 

 

 

 

9,079

 

Goodwill

 

 

357,869

 

 

 

6,968

 

Intangibles, net

 

 

393,575

 

 

 

19,293

 

Other non-current assets

 

 

56,347

 

 

 

30,971

 

Long-term investments (includes $27,860 and $29,717 of available-for-sale securities as of
   September 30, 2022 and December 31, 2021, respectively, reported at fair value)

 

 

50,131

 

 

 

70,615

 

Total Assets

 

$

1,838,054

 

 

$

569,017

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

276,026

 

 

$

102,489

 

Revolving credit agreements outstanding

 

 

84,503

 

 

 

 

Notes payable

 

 

29,782

 

 

 

 

Unearned revenue

 

 

40,993

 

 

 

17,737

 

Accrued expenses and other liabilities

 

 

25,554

 

 

 

13,673

 

Accrued wages and benefits

 

 

41,595

 

 

 

14,900

 

Income tax payable, net

 

 

26,838

 

 

 

6,560

 

Total Current Liabilities

 

 

525,291

 

 

 

155,359

 

Deferred tax liabilities, net

 

 

36,884

 

 

 

 

Non-current unearned revenue

 

 

18,269

 

 

 

9,271

 

Pension liability

 

 

16,220

 

 

 

11,402

 

Deferred compensation liability

 

 

25,376

 

 

 

31,383

 

Non-current lease obligations

 

 

21,490

 

 

 

3,269

 

Other non-current liabilities

 

 

9,697

 

 

 

1,231

 

Total Liabilities

 

 

653,227

 

 

 

211,915

 

Commitments and contingencies (see Note 20)

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Common stock, par value $0.01 per share; 200,000 shares authorized;
   
77,619 shares issued and outstanding as of September 30, 2022 and
   
79,652 shares issued and 49,063 shares outstanding as of December 31, 2021

 

 

776

 

 

 

797

 

Additional paid-in capital

 

 

883,210

 

 

 

288,946

 

Accumulated other comprehensive loss

 

 

(40,288

)

 

 

(11,914

)

Retained earnings

 

 

31,535

 

 

 

740,820

 

Treasury stock at cost: 197 and 30,590 shares as of September 30, 2022
   and December 31, 2021, respectively

 

 

(4,083

)

 

 

(661,547

)

     Non-controlling interest

 

 

313,677

 

 

 

 

Total Equity

 

 

1,184,827

 

 

 

357,102

 

Total Liabilities and Equity

 

$

1,838,054

 

 

$

569,017

 

 

See accompanying notes to condensed consolidated financial statements.

 

7


 

ADTRAN Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS

(Unaudited)

(In thousands, except per share amounts)

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

$

304,940

 

 

$

120,767

 

 

$

599,306

 

 

$

360,025

 

Services & Support

 

 

35,769

 

 

 

17,314

 

 

 

67,959

 

 

 

48,821

 

Total Revenue

 

 

340,709

 

 

 

138,081

 

 

 

667,265

 

 

 

408,846

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

222,606

 

 

 

81,029

 

 

 

413,180

 

 

 

216,044

 

Services & Support

 

 

15,076

 

 

 

9,379

 

 

 

34,236

 

 

 

28,860

 

Total Cost of Revenue

 

 

237,682

 

 

 

90,408

 

 

 

447,416

 

 

 

244,904

 

Gross Profit

 

 

103,027

 

 

 

47,673

 

 

 

219,849

 

 

 

163,942

 

Selling, general and administrative expenses

 

 

74,880

 

 

 

30,972

 

 

 

130,646

 

 

 

89,273

 

Research and development expenses

 

 

59,196

 

 

 

26,759

 

 

 

112,187

 

 

 

82,131

 

Asset impairment

 

 

16,969

 

 

 

 

 

 

16,969

 

 

 

 

Operating Loss

 

 

(48,018

)

 

 

(10,058

)

 

 

(39,953

)

 

 

(7,462

)

Interest and dividend income

 

 

347

 

 

 

344

 

 

 

768

 

 

 

887

 

Interest expense

 

 

(1,303

)

 

 

(6

)

 

 

(1,427

)

 

 

(18

)

Net investment (loss) gain

 

 

(2,691

)

 

 

(63

)

 

 

(10,752

)

 

 

2,942

 

Other income, net

 

 

2,494

 

 

 

648

 

 

 

2,949

 

 

 

2,673

 

Loss Before Income Taxes

 

 

(49,171

)

 

 

(9,135

)

 

 

(48,415

)

 

 

(978

)

Income tax benefit (expense)

 

 

4,312

 

 

 

(1,292

)

 

 

4,572

 

 

 

(3,467

)

Net Loss

 

$

(44,859

)

 

$

(10,427

)

 

$

(43,843

)

 

$

(4,445

)

Less: Net Loss attributable to non-controlling interest

 

 

(2,925

)

 

 

 

 

 

(2,925

)

 

 

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

$

(41,934

)

 

$

(10,427

)

 

$

(40,918

)

 

$

(4,445

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

73,036

 

 

 

48,609

 

 

 

57,175

 

 

 

48,470

 

Weighted average shares outstanding – diluted

 

 

73,036

 

 

 

48,609

 

 

 

57,175

 

 

 

48,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(0.57

)

 

$

(0.21

)

 

$

(0.72

)

 

$

(0.09

)

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

 

$

(0.57

)

 

$

(0.21

)

 

$

(0.72

)

 

$

(0.09

)

 

See accompanying notes to condensed consolidated financial statements.

 

8


 

ADTRAN Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net Loss

 

$

(44,859

)

 

$

(10,427

)

 

$

(43,843

)

 

$

(4,445

)

Other Comprehensive Loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized loss on available-for-sale securities

 

 

(396

)

 

 

(61

)

 

 

(1,320

)

 

 

(348

)

Defined benefit plan adjustments

 

 

(118

)

 

 

124

 

 

 

(218

)

 

 

435

 

Foreign currency translation loss

 

 

(23,172

)

 

 

(1,389

)

 

 

(26,930

)

 

 

(2,914

)

Other Comprehensive Loss, net of tax

 

 

(23,686

)

 

 

(1,326

)

 

 

(28,468

)

 

 

(2,827

)

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

 

 

(94

)

 

 

 

 

 

(94

)

 

 

 

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

 

$

(68,451

)

 

$

(11,753

)

 

$

(72,217

)

 

$

(7,272

)

 

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
Earnings

 

 

Treasury
Stock

 

 

Accumulated Other Comprehensive Loss

 

 

Non-controlling interest

 

 

Total
Equity

 

Balance as of December 31, 2021

 

 

79,652

 

 

$

797

 

 

$

288,946

 

 

$

740,820

 

 

$

(661,547

)

 

$

(11,914

)

 

$

-

 

 

$

357,102

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(1,127

)