ADTRAN Holdings, Inc. (NASDAQ:ADTN) Q2 2024 Results Conference Call August 6, 2024 10:30 AM ET

Company Participants

Tom Stanton - Chief Executive Officer
Uli Dopfer - Senior Vice President and Chief Financial Officer

Conference Call Participants

Ryan Koontz - Needham & Company
George Notter - Jefferies
Bill Dezellem - Teiton Capital
Tim Savageaux - Northland Capital Markets

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the ADTRAN Holdings, Inc. Second Quarter 2024 Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer period. [Operator Instructions] As a reminder, today's call is being recorded.

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 the risks the risks detailed in our earnings release, our annual report on Form 10-K and our filings with the SEC. 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.

We undertake no obligation to update any statements to reflect the events that occur after this call. During the course of today's call, we will refer to certain non-GAAP financial measures. Reconciliations of non-GAAP to GAAP measures and certain additional information are also included in our investor presentation and our earnings release. 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, John. Good morning, everyone.

We appreciate you joining us for our second quarter 2024 earnings conference call. With me today is ADTRAN Holdings’ CFO, Uli Dopfer. Following my opening remarks, Uli will review the quarterly financial performance in detail, and then we will take any questions you may have.

While the quarter came in largely as expected. Financially, we realized the non-GAAP operating profit driven by gross margin improvements and substantially lower operating expenses.

Working capital was significantly reduced as we continue to decrease our inventory levels, our non-GAAP free cash flow was positive for the second straight quarter, and we grew our customer base across the U.S. and Europe, as customers continue to adopt our latest fiber networking solutions. We achieved all of these despite the headwinds that we are all feeling.