Brief: ADTRAN Says Took Non-Cash Goodwill Impairment For Q1 2024 In An Estimated Amount Of $293 Mln

Adtran Holdings

03/05/2024 22:29

May 3 (Reuters) - ADTRAN Holdings Inc  ADTN.O :
    * EQS-ADHOC: NON-CASH GOODWILL IMPAIRMENT FOR THE FIRST
QUARTER
2024 IN AN ESTIMATED AMOUNT OF $293 MILLION; NO IMPACT ON
NON-GAAP RESULTS AND CASH FLOW FOR THE FIRST QUARTER 2024
    * DETERMINED THAT A MATERIAL CHARGE FOR IMPAIRMENT TO
GOODWILL
WILL BE REQUIRED FOR Q1 OF 2024
    * IMPAIRMENT LEADS TO AN INCREASED GAAP OPERATING LOSS FOR
Q1 2024
BY SAME AMOUNT
    * CHARGE HAS NO IMPACT ON COMPANY'S COMPLIANCE WITH
COVENANTS
UNDER ITS CREDIT AGREEMENT
    * ADTRAN HOLDINGS -  NON-CASH GOODWILL IMPAIRMENT ON
CARRYING
AMOUNT OF GOODWILL SOLELY ALLOCATED TO NETWORK SOLUTIONS SEGMENT
ESTIMATED AROUND $293 MILLION
    * IMPAIRMENT ASSESSMENT WAS TRIGGERED AS A RESULT OF FACTORS
SUCH
AS A DECREASE IN COMPANY'S MARKET CAPITALIZATION
    * ADTRAN HOLDINGS - IMPAIRMENT ASSESSMENT WAS TRIGGERED AS A
RESULT OF FACTORS SUCH AS CAUTIOUS SERVICE PROVIDER SPENDING DUE
TO ECONOMIC UNCERTAINTY

Source text for Eikon:  ID:nEQ2yLy1va 
Further company coverage:  ADTN.O 

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