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

ADTRAN Holdings Inc ADTN:

• 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