Why ADTRAN (ADTN) Shares Are Falling Today - Adtran Holdings (NASDAQ:ADTN)

ADTRAN Holdings, Inc ADTN shares are down Tuesday premarket following its weak first-quarter preliminary revenue results.
ADTN expects first-quarter revenues of $322 million - $326 million, below its guided range of $355 million - $375 million and also missing the Street view of $364.1 million.
The lower-than-expected revenue reflected its ongoing supply constraints and the unfavorable impact of customer inventory corrections that weighed on its Subscriber Solutions product line. Consequently, ADTRAN sees a non-GAAP operating margin within -1% to -2.5%.
ADTRAN Chief Executive Officer Tom Stanton stated, "Growing customer concerns over inventory stocking levels affected our first quarter Subscriber Solutions category. We believe that this over-supply condition in CPE products will continue into the second quarter. Revenue for our Access and Optical Networking products grew sequentially. Supply constraints, however, limited our flexibility to clear past-due backlog across all product categories. We believe that the inventory impact is transitory, and we expect to see some improvement during the second quarter."
In March 2023, ADTN disclosed the appointment of Uli Dopfer as its new CFO, effective May 1, 2023, who will replace Mike Foliano following his retirement, effective June 28, 2023.
Price Action: ADTN shares are trading lower by 19.59% at $12.15 in the premarket session on the last check Tuesday.

ADTRAN Shares Tumble On Bearish Preliminary Q1 Numbers