- Adtran (NASDAQ:ADTN) reports products revenue declined 26.7% to $105.25M in Q1.
- Services revenue squeezed 41.7% to $15.55M.
- Gross margin rate fell drastically 1040 bps to 32.9%.
- SG&A expense rate deleveraged 740 bps to 27.8%.
- ADTRAN Chairman and Chief Executive Officer Tom Stanton stated, “As we expected, our performance this quarter continued to be impacted by a merger-related review and slowdown in the spending at a domestic Tier 1 customer. While our international Tier 1 revenue exceeded expectations, lower overall product volumes resulting from the domestic slowdown, coupled with restructuring expenses and lower international gross margins, negatively affected our profit margins for the quarter and further hampered our results. Looking ahead, we expect continued strength in our European business in the second quarter and a rebound in our North American business in the second half. Our level of engagement with domestic and international Tier 1 customers remains at all-time highs, and our recent acquisition of the market leadership in EPON for the North American cable/MSO market positions us for further growth moving forward.”
- ADTN -6.54% premarket.
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