HUNTSVILLE (dpa-AFX) - The US telecom equipment supplier Adtran Holdings will probably have to write off goodwill in the three-digit million euro range. The parent company of Adtran Networks announced on Saturday night that a non-cash impairment loss of around 293 million US dollars (272.5 million euros) is expected for the so-called goodwill, which is exclusively attributable to the Network Solutions segment. The impairment would lead to an increased operating loss of the same amount in the first quarter. However, the forecast for the operating margin adjusted for special effects for the period remains unchanged.

According to the information provided, the reasons for the impairment are a lower

market capitalization of the company, the restrained investment

investment behavior of service providers due to the economic uncertainties and the ongoing adjustments to customers' inventories. Details on the current business development and the impairment will be provided on Monday. The company will then publish its business figures for the first quarter.

Adtran Networks already felt the effects of weak demand last year. The share has been on a downward trend for some time.

In the fourth quarter of 2023, revenue shrank by 37% year-on-year to USD 225.5 million. The operating margin - the ratio of the operating result adjusted for special effects to revenue - amounted to minus 1.4%. The bottom line for the fourth quarter was a loss attributable to shareholders of just under 110 million dollars. The US company, which is listed on the SDax, had already introduced cost-cutting measures to get the problems under control. Adtran Holdings is the parent company of the German company Adtran Networks (formerly Adva Optical)./mis