MUNICH (dpa-AFX) - Telecom equipment supplier Adtran Networks (formerly Adva Optical) felt the effects of weak demand in the final quarter of 2023. Sales fell by almost 40 percent year-on-year to 118.5 million euros from October to December, as the SDax-listed company announced in Munich on Tuesday. Adjusted for special effects, earnings before interest and taxes (EBIT) fell by just over 60 percent to just under 9.3 million euros. The development is not unexpected, as CEO Tom Stanton had already announced weak business in the second half of the year in the summer and had also sharply lowered the sales and profit forecast at the time.

The bottom line for the final quarter was a net loss of 22.7 million euros. In the same period of the previous year, Adtran Networks had still generated a surplus of just under 3.8 million euros. The company therefore also slipped into the red for the year as a whole.

"Sales and profitability in the fourth quarter were in line with expectations," explained CEO Tom Stanton. Despite the macroeconomic environment and a reduction in high customer inventories, demand remains fundamentally intact. Service providers are continuing to pursue the same goals as before, namely expanding their fiber optic capacities and increasing bandwidth.

Adtran Networks has been part of the US group Adtran Holdings for some time. The US group is also listed on the SDax due to the takeover. Adtran Holdings also presented preliminary figures for the fourth quarter on Tuesday. Turnover declined and a loss was recorded./mne/mis