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Adtran Networks SE
XMUN:ADV

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Adtran Networks SE
XMUN:ADV
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Price: 21.9 EUR Market Closed
Market Cap: €728.1m

Adtran Networks SE
Investor Relations

Adtran Networks SE makes networking equipment that helps internet and telecom traffic move between buildings, cities, and data centers. Its products include optical transport gear, Ethernet access systems, timing and synchronization tools, and software for managing those networks. The company sells mostly to telecom operators, internet service providers, data center operators, large enterprises, and public institutions that need reliable, high-capacity connections. The company makes money by selling hardware and software systems, then earning ongoing fees from support, maintenance, and related services. In practice, it sits in the middle of the communications infrastructure chain: customers use its gear to carry voice, video, and data across fiber networks, while network builders use its tools to monitor and control that traffic. What makes the business distinct is that it focuses on the layer of the network that moves data over long distances and keeps different systems in sync. That gives it a role that is less visible than a phone company or cloud provider, but essential to how modern communication networks are built and kept running.

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Last Earnings Call
Fiscal Period
Q4 2022
Call Date
Feb 21, 2023
AI Summary
Q4 2022

Record Revenue: ADVA reported its highest-ever quarterly and full-year revenues, with Q4 2022 revenue up 24.1% year-over-year to EUR 195.7 million and full-year 2022 revenue reaching EUR 712.1 million, an 18% increase from 2021.

Profitability: Pro forma EBIT margin in Q4 rose to 12.5%, up from 9.1% a year ago, supported by higher revenues and better margins.

Supply Chain: Semiconductor shortages improved but some challenges remain, keeping inventories high into at least the first half of 2023. Component prices are not expected to decrease soon.

ADTRAN Merger: The business combination with ADTRAN was completed, creating a group with over USD 1 billion in annual revenue and expected synergies of $52 million within 24 months.

Strong Demand & Backlog: Demand stayed robust with record-level order backlog, especially from telecommunications service providers and U.S. customers.

Net Income Drop: Net income for Q4 fell to EUR 3.8 million from EUR 17.5 million, mainly due to unfavorable FX effects and absence of last year’s tax credit.

Positive Outlook: Management remains optimistic about future growth opportunities, revenue synergies, and gradual supply chain normalization towards pre-COVID levels.

Key Financials
Revenue
EUR 195.7 million
Revenue (Full Year)
EUR 712.1 million
Gross Profit
EUR 71.4 million
Pro Forma EBIT
EUR 24.4 million
Pro Forma EBIT Margin
12.5%
Net Income
EUR 3.8 million
Cash Balance
EUR 58.4 million
Operating Cash Flow
EUR 20.4 million
Free Cash Flow
EUR -0.4 million
Net Debt Position
EUR 19.2 million
Debt Leverage Ratio
0.7x EBITDA
Equity Ratio
57.0%
Operating Cash (last 12 months)
4.4%
Other Earnings Calls

Management

Contacts

Address
BAYERN
Martinsried
Campus Martinsried, Fraunhoferstrasse 9a
Contacts
+49898906650
www.adva.com