ADTRAN Holdings, Inc. (NASDAQ:ADTN) Q1 2023 Earnings Conference Call May 9, 2023 10:30 AM ET
Company Participants
Tom Stanton - Chief Executive Officer
Uli Dopfer - Chief Financial Officer
Christoph Glingener - Chief Technology Officer
Conference Call Participants
Michael Genovese - Rosenblatt Securities
George Notter - Jefferies
Ryan Koontz - Needham & Company
Greg Mesniaeff - WestPark Capital
Paul Essi - William K. Woodruff Company
Tim Savageaux - Northland Capital Markets
Operator
Ladies and gentlemen, thank you for standing by, and welcome to ADTRAN Holdings, Inc. First Quarter 2023 Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. [Operator Instructions]
During the course of the conference call, ADTRAN representatives expect to make forward-looking statements that reflect management's best judgment based on factors currently known. However, these statements involve risks and uncertainties, including ability of component supplies to align with customer demand, the successful development and market acceptance of our products, competition in the market for such products, the product and channel mix, components cost, freight and logistics costs, manufacturing efficiencies, or ability to effectively integrate mergers and acquisitions, and other risks detailed in our annual report on Form 10-K for the year ended December 31, 2022, and our quarterly report on Form 10-Q for the quarter ending March 31, 2023. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements, which may be made during the call.
The investor presentation found on ADTRAN Investor Relations website has been updated and is available for download.
It is now my pleasure to turn the call over to Tom Stanton, Chief Executive Officer of ADTRAN Holdings. Sir, please go ahead.
Tom Stanton
Thank you, Rob. Good morning, everyone. We appreciate you joining us for our first quarter 2023 earnings conference call.
With me today is ADTRAN Holdings' CFO, Uli Dopfer, and also joining us today is [Christian] (ph) Glingener, ADTRAN's CTO. Following my opening remarks, Uli will review the quarterly financial performance in detail, and then we'll take any questions that you may have.
I'll start by offering a high-level summary of what happened in the quarter and our views of the market going forward. As I mentioned in our pre-release, the results of the quarter were impacted by slowing revenue, predominantly in our Subscriber Solutions category. While we did have more-than-enough backlog to cover this gap, supply chain constraints hindered our ability to overcome these challenges during the quarter. We believe the slowdown in Subscriber Solutions was the result of increased scrutiny of inventory levels with our customers, driven by a combination of reduced lead times in the market and uncertainty in the broader economic environment.