ADTRAN Holdings Inc (ADTN) 2025 Q3 法說會逐字稿

Good morning. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the ADTRAN Holdings third quarter 2025 financial results conference call. (Operator Instructions)

早安.我叫卡莉，今天我將擔任你們的會議接線生。在此，我謹代表 ADTRAN Holdings 歡迎各位參加 2025 年第三季財務業績電話會議。（操作說明）

I would now like to turn the call over to Mr. Peter Schuman, Vice President, Investor Relations. Please go ahead.

現在我將把電話交給投資者關係副總裁彼得舒曼先生。請繼續。

Thank you, Carly. Welcome, and thank you for joining us today, and welcome to all those joining by webcast.

謝謝你，卡莉。歡迎各位，感謝你們今天加入我們，也歡迎所有透過網路直播加入我們的朋友們。

During the conference call, ADTRAN representatives will make forward-looking statements that reflect management's best judgment based on factors currently known. However, these statements involve risks and uncertainties, including those detailed in our earnings release, our annual report on Form 10-K as amended and other filings with the SEC. These risks and uncertainties could cause actual results to differ materially from those in our forward-looking statements, which may be made during the call. We undertake no obligation to update any statements to reflect events that occur after this call.

在電話會議期間，ADTRAN 的代表將發表前瞻性聲明，這些聲明反映了管理層基於目前已知因素的最佳判斷。然而，這些聲明涉及風險和不確定性，包括我們在盈利公告、經修訂的 10-K 表格年度報告以及向美國證券交易委員會提交的其他文件中詳細說明的風險和不確定性。這些風險和不確定性可能導致實際結果與我們在電話會議期間可能做出的前瞻性聲明有重大差異。我們不承擔任何義務更新任何聲明以反映本次通話後發生的事件。

During today's call, we will refer to certain non-GAAP financial measures. Reconciliations of GAAP to non-GAAP measures and certain additional information are included in our investor presentation and our earnings release. We have not provided reconciliations of our fourth quarter 2025 outlook with regard to non-GAAP operating margin because we cannot predict and quantify without unreasonable effort, all of the adjustments that may occur during the period. The investor presentation has been updated and is available for download on the ADTRAN Investor Relations website.

在今天的電話會議中，我們將提及一些非GAAP財務指標。GAAP 與非 GAAP 指標的調整表以及某些其他資訊已包含在我們的投資者簡報和獲利報告中。我們沒有提供 2025 年第四季非 GAAP 營業利潤率展望的調整表，因為我們無法在不付出不合理努力的情況下預測和量化該期間可能發生的所有調整。投資者簡報已更新，可在 ADTRAN 投資者關係網站上下載。

Turning to the agenda. Tom Stanton, ADTRAN Holdings' CEO and Chairman of the Board, will provide key highlights of the third quarter of 2025. Tim Santo, our Senior Vice President and CFO, will review the quarterly financial performance in detail and provide our fourth quarter 2025 outlook, and then we will take any questions you may have.

接下來進入議程。ADTRAN Holdings 執行長兼董事會主席 Tom Stanton 將介紹 2025 年第三季的主要亮點。我們的高級副總裁兼財務長蒂姆·桑托將詳細回顧季度財務業績，並給出我們對 ​​2025 年第四季度的展望，之後我們將回答您可能提出的任何問題。

I'd like to now turn the call over to Tom Stanton.

現在我將把電話交給湯姆史丹頓。

Thank you, Peter. Good morning, everyone. ADTRAN delivered solid third quarter results with revenue near the upper end of our guidance and higher operating margins. All three business categories achieved double-digit year-over-year growth, reflecting disciplined execution, new customer wins and healthy demand for fiber networking solutions. Operating profit exceeded the midpoint of our outlook, underscoring the solid execution and our focus on leveraging financial performance as a driver of longer-term value creation.

謝謝你，彼得。各位早安。ADTRAN 第三季業績穩健，營收接近預期上限，營業利益率也更高。所有三個業務類別均實現了兩位數的同比增長，這反映了公司嚴謹的執行力、新客戶的獲勝以及對光纖網路解決方案的良好需求。營業利潤超過了我們預期的中點，這凸顯了我們穩健的執行力以及我們專注於利用財務業績作為長期價值創造驅動力的理念。

The quarter was led by strong results in Optical Networking and Subscriber Solutions, while Access & Aggregation reflected anticipated buying patterns of two large European customers. We expect those customers to come back online either early -- late in the fourth quarter or early next year. We remain confident on the overall market for the remainder of this year, however. During the quarter, we closed on a $201 million financing transaction that lowered our borrowing cost and increased financial flexibility, important steps that strengthen our capital structure and position us to execute confidently on longer-term strategic objectives.

本季主要得益於光網路和用戶解決方案的強勁業績，而接取與聚合業務則反映了兩家大型歐洲客戶的預期購買模式。我們預計這些客戶要么在第四季度末恢復在線，要么在明年年初恢復在線。不過，我們對今年剩餘時間的整體市場依然充滿信心。本季度，我們完成了一筆 2.01 億美元的融資交易，降低了我們的借貸成本，提高了財務靈活性，這是加強我們資本結構的重要一步，使我們能夠自信地執行更長期的戰略目標。

Turning to the quarterly results. ADTRAN reported $279.4 million, reflecting strong year-over-year growth across all three revenue categories. This marks the fifth consecutive quarter of sequential growth and fourth consecutive quarter of year-over-year improvement, proof points that our portfolio strategy and market positioning are driving sustainable momentum. This consistency underscores the health of our business, continued improvement in market conditions and the progress we are making in strengthening our foundation for the longer-term growth.

接下來來看一下季度業績。ADTRAN 公佈營收為 2.794 億美元，反映出所有三個營收類別均實現了強勁的年成長。這標誌著連續第五個季度實現環比增長，連續第四個季度實現同比增長，證明我們的投資組合策略和市場定位正在推動可持續的成長勢頭。這種穩定性凸顯了我們業務的健康發展、市場狀況的持續改善以及我們在加強長期成長基礎方面所取得的進展。

From our customers' perspective, engagement across our portfolio continues to strengthen as we broaden our technology reach. We're making it easier to choose ADTRAN, not just because of what we build, but because of how seamlessly our solutions work together. Our integrated portfolio means fewer handoffs, faster time to value and one accountable partner across optical, access, subscriber and software. Our technology is the enabler, but the outcome is what matters; simpler operations, greater efficiency and a trusted relationship that continues to open new opportunities for collaboration.

從客戶的角度來看，隨著我們技術覆蓋範圍的擴大，我們產品組合的客戶參與度也不斷提高。我們讓選擇 ADTRAN 變得更加容易，不僅是因為我們開發的產品，更是因為我們的解決方案能夠無縫協作。我們的一體化產品組合意味著更少的交接環節、更快的價值實現速度，以及涵蓋光纖、存取、用戶和軟體的單一責任合作夥伴。我們的技術是推動因素，但結果才是最重要的：更簡單的操作、更高的效率以及值得信賴的關係，這將持續為合作開闢新的機會。

Our Optical Networking solutions grew 47% year-over-year and 15% sequentially, driven by strong momentum in Europe, including deployments with a new large service provider. We added 15 new optical customers in the quarter, reflecting continued share gains and the expanding reach of our portfolio. Demand remains robust and geographically diverse, supporting a wide range -- array of applications. These include national networks throughout Europe, secure connectivity for major enterprises and government clients worldwide with high-capacity interconnects for large-scale content providers.

受歐洲強勁成長勢頭的推動，包括與一家新的大型服務供應商的合作部署，我們的光網路解決方案年增 47%，季增 15%。本季我們新增了 15 家光學客戶，這反映了我們市場份額的持續成長和產品組合覆蓋範圍的擴大。市場需求依然強勁，地域分佈廣泛，支持著各種各樣的應用。其中包括遍布歐洲的國家網絡，為全球主要企業和政府客戶提供安全連接，並為大型內容提供者提供高容量互連。

Access & Aggregation revenue grew 12% year-over-year, supported by ongoing fiber access investments among regional operators in the US and Europe. While revenues from our small and medium service providers in the US were substantially up, this increase was offset by the seasonal buying pattern of two major European customers. We added 14 new customers for our fiber access and Ethernet aggregation platforms, demonstrating continued traction across both new and existing markets. In Subscriber Solutions, revenue grew 12% year-over-year and 21% sequentially, driven by demand for both residential and wholesale applications. We added 18 new customers during the quarter as service providers continued expanding fiber reach and upgrading Wi-Fi capabilities.

接入與聚合業務收入年增 12%，這得益於美國和歐洲區域營運商持續加大對光纖接入的投資。雖然我們在美國中小型服務供應商的收入大幅成長，但這一成長被兩個歐洲主要客戶的季節性購買模式所抵消。我們的光纖接取和乙太網路聚合平台新增了 14 位客戶，這顯示我們在新市場和現有市場都持續保持良好的發展動能。在用戶解決方案方面，營收年增 12%，季增 21%，這主要得益於住宅和批發應用的需求成長。本季我們新增了 18 位客戶，服務供應商持續擴大光纖覆蓋範圍並升級 Wi-Fi 功能。

This quarter, we introduced Mosaic One Clarity, a new application built on our carrier-grade Agentic AI platform that enables predictive maintenance, guided issue resolution and proactive network optimization. Early results from customer pilots are promising, demonstrating a reduction of up to 75% in network-related trouble tickets. This is a strong validation of our AI-driven approach to network intelligence and a clear example of how innovation within Mosaic One is helping operators improve performance and efficiency.

本季度，我們推出了 Mosaic One Clarity，這是一款基於我們運營商級 Agentic AI 平台構建的新應用程序，可實現預測性維護、引導式問題解決和主動式網路優化。客戶試點計畫的早期結果令人鼓舞，顯示網路相關故障單減少了高達 75%。這有力地驗證了我們以人工智慧驅動的網路智慧方法，也清楚地表明了 Mosaic One 的創新如何幫助營運商提高效能和效率。

Structural shifts across our industry from core to edge computing and the advent of intelligent networks are reshaping connectivity worldwide. AI isn't just transforming data centers; it's redefining the entire network. The rise of distributed computing and edge processing is driving new requirements for bandwidth, latency and reliability, fueling demand for high-capacity optical solutions, next-generation access platforms and intelligent software to automate operations. ADTRAN is uniquely positioned at the intersection with our differentiated portfolio and our Mosaic One operating platform.

我們產業從核心運算向邊緣運算的結構性轉變以及智慧網路的出現正在重塑全球連結方式。人工智慧不僅在改變資料中心，它還在重新定義整個網路。分散式運算和邊緣處理的興起對頻寬、延遲和可靠性提出了新的要求，從而推動了對高容量光纖解決方案、下一代存取平台和用於自動化操作的智慧軟體的需求。ADTRAN憑藉其差異化的產品組合和Mosaic One營運平台，在兩者之間佔據了獨特的優勢地位。

As investment accelerates in AI and cloud computing, upgrades will follow across the network through metro transport, access and aggregation, and ultimately, the subscriber edge. Our Optical Networking, Access & Aggregation, Subscriber Solutions and Mosaic One software are built for that cascade, delivering higher throughput, lower latency and smarter, more efficient operations at scale.

隨著對人工智慧和雲端運算的投資加速，城域傳輸、存取和聚合，以及最終用戶邊緣，整個網路都將進行升級。我們的光網路、存取與匯聚、用戶解決方案和 Mosaic One 軟體專為此級聯而構建，可大規模提供更高的吞吐量、更低的延遲和更智慧、更有效率的操作。

In summary, Q3 was another quarter of solid execution and strategic progress, marking a clear step forward in both performance and positioning. We delivered top line momentum and profitability improvements while enhancing our ability to invest and operate with greater financial flexibility, all of which reflects the disciplined way our teams are executing across the business.

總而言之，第三季在執行和策略進展方面又取得了穩健的成果，標誌著業績和市場地位都向前邁出了明顯的一步。我們在維持營收成長動能和獲利能力的同時，增強了投資和營運能力，提高了財務靈活性，這一切都體現了我們團隊在整個業務中嚴謹的執行方式。

More importantly, we are setting the foundation for sustained value creation. The actions we've taken to enhance efficiency, strengthen our balance sheet and sharpen our focus are enabling us to operate from a position of greater agility and confidence.

更重要的是，我們正在為持續創造價值奠定基礎。我們為提高效率、增強資產負債表和明確重點而採取的措施，使我們能夠以更大的靈活性和信心開展業務。

As Tim will discuss in more detail during the financial review, our scale efficiencies are creating meaningful operating leverage across the business. With disciplined cost control and strengthened balance sheet, we see line of sight to continued margin expansion and earnings growth as we move through 2026, all while maintaining the same financial discipline that has guided our progress.

正如 Tim 將在財務回顧中更詳細地討論的那樣，我們的規模效益正在為整個業務創造有意義的營運槓桿。憑藉嚴格的成本控制和更穩健的資產負債表，我們看到了在 2026 年實現利潤率持續擴大和盈利增長的前景，同時保持著指導我們前進的財務紀律。

With that, I will turn the call over to Tim to review the financial results in more detail. Tim?

接下來，我將把電話交給提姆，讓他更詳細地分析財務表現。提姆？

Thank you, Tom, and thank you all for joining us this morning. We delivered solid results in the third quarter, reflecting strong discipline and consistent execution across the business. As Tom shared, we achieved broad-based revenue growth, higher margins and improved operational efficiency as benefits from increased scale began to take hold. Demand was strong in optical networking and subscriber solutions, supported by healthy customer activity and continued broadband investment globally.

謝謝你，湯姆，也謝謝各位今天早上收看我們的節目。第三季我們取得了穩健的業績，這反映了公司上下嚴明的紀律和一致的執行力。正如湯姆所說，隨著規模擴大帶來的好處開始顯現，我們實現了全面的收入成長、更高的利潤率和更高的營運效率。在全球客戶活躍度高和寬頻投資持續成長的推動下，光網路和用戶解決方案的需求強勁。

Over the past quarter, we've reinforced the operational fundamentals of the business and enhanced our financial controls and processes to support growth. These actions strengthen reliability and transparency of our published results and position us to deploy capital effectively, aligning operational execution with long-term value creation.

過去一個季度，我們加強了業務的營運基礎，並改善了財務控制和流程，以支援業務成長。這些措施增強了我們已發布業績的可靠性和透明度，使我們能夠有效地部署資本，使營運執行與長期價值創造保持一致。

As Tom shared, the third quarter also marked a significant step in strengthening our capital structure. The $201 million transaction that we completed has lowered borrowing costs, improved liquidity and substantially reduced risk. While it also unlocks significant availability under our revolving credit facility, it does not change the strategic priorities we've outlined to monetize our non-core assets.

正如湯姆所說，第三季也標誌著我們在加強資本結構方面邁出了重要一步。我們完成的這筆 2.01 億美元的交易降低了借貸成本，提高了流動性，並大幅降低了風險。雖然這也釋放了我們循環信貸額度下的大量可用資金，但這並不會改變我們為實現非核心資產貨幣化而製定的策略重點。

As many of you know, we recently engaged new partners to represent the sale of our Huntsville campus. Together, we have relaunched a targeted marketing process and are actively speaking with interested parties. We will remain disciplined on terms and timing, and we'll provide updates as appropriate. Simply put, we are moving forward the process with focus and intent. Maintaining a healthy balance sheet remains a top priority. We've made tangible progress this year, and our balance sheet today is more resilient, flexible and better aligned to support long-term growth.

正如你們許多人所知，我們最近聘請了新的合作夥伴來代表我們出售亨茨維爾校區。我們共同重新啟動了有針對性的行銷流程，並正在積極與有興趣的各方進行洽談。我們將繼續嚴格遵守條款和時間安排，並將在適當的時候提供最新資訊。簡而言之，我們正在有條不紊、目標明確地推進這項進程。保持健康的資產負債表仍然是首要任務。今年我們取得了實際進展，如今我們的資產負債表更具韌性、更靈活，更能支持長期成長。

Turning to the financial results for the third quarter of 2025. Revenue was $279.4 million, up 23% year-over-year and 5% sequentially, finishing at the high end of our guidance. Growth was broad-based, led by Optical Networking, which increased 47% year-over-year. Geographically, non-US revenue accounted for 57% of total revenue, while the US represented 43%. One customer contributed more than 10% of total revenue during the third quarter.

接下來來看2025年第三季的財務表現。營收為 2.794 億美元，年增 23%，環比成長 5%，達到我們預期的高端水準。成長基礎廣泛，其中光網路業務成長最為顯著，較去年同期成長 47%。從地理上看，非美國收入佔總收入的 57%，而美國收入佔 43%。第三季度，一位客戶貢獻了超過 10% 的總收入。

Non-GAAP gross margin improved to 42.1%, up both sequentially and year-over-year, driven by scale efficiencies, product mix and component cost reductions. We remain focused on sustaining gross margin in the 42% to 43% range over the long term.

非GAAP毛利率提高至42.1%，環比和年比均有所成長，這主要得益於規模效益、產品組合和零件成本的降低。我們將繼續致力於長期維持毛利率在 42% 至 43% 的範圍內。

Non-GAAP operating profit rose to $15.1 million or 5.4% of revenue, exceeding the midpoint of our outlook. On a sequential basis, operating profit increased by $7.1 million or 89% compared to $14.6 million from approximately zero in the prior year. Operating income during the same period has increased to 5.4% in Q3 2025 from 3% in Q2 2025 and 0.2% in Q3 2024.

非GAAP營業利潤增至1,510萬美元，佔營收的5.4%，超過了我們預期的中位數。與前一年相比，營業利潤季增 710 萬美元，增幅達 89%，達到 1,460 萬美元，而前一年則幾乎為零。同期營業收入成長率從 2025 年第二季的 3% 和 2024 年第三季的 0.2% 成長至 2025 年第三季的 5.4%。

Currency had a minimal impact on our earnings this quarter. While volatility persists across both revenue and expenses, our natural hedging framework continues to mitigate risk. Building on the stronger forecasting, reporting and treasury processes established this year, we are now expanding our FX strategies to further protect our balance sheet and working capital.

本季匯率波動對我們的收益影響甚微。儘管收入和支出持續波動，但我們天然的對沖框架繼續降低風險。在今年建立的更完善的預測、報告和財務流程的基礎上，我們正​​在擴大外匯策略，以進一步保護我們的資產負債表和營運資金。

Non-GAAP tax expense in Q3 2025 was $3.5 million or an effective rate of 38.3%. Non-GAAP EPS was $0.05 compared to breakeven in Q2 2025 and compared to a loss of $0.07, one year ago. We continue to strengthen our financial position with working capital improving by $13.2 million.

2025 年第三季非 GAAP 稅項支出為 350 萬美元，實際稅率為 38.3%。非GAAP每股收益為0.05美元，而2025年第二季為損益平衡，一年前則虧損0.07美元。我們的財務狀況持續改善，營運資金增加了1,320萬美元。

Accounts receivable increased by $13.9 million, resulting from increased sales with DSO remaining relatively flat at 59 days. Inventory declined by $16.3 million sequentially, reducing days inventory outstanding by 11 days to 124. Accounts payable totaled $188.9 million with days payable outstanding remaining flat at 70 days.

由於銷售額增加，應收帳款增加了 1,390 萬美元，而 DSO 保持相對穩定，為 59 天。庫存較上月下降 1,630 萬美元，庫存週轉天數減少 11 天至 124 天。應付帳款總額為 1.889 億美元，應付帳款週轉天數仍為 70 天。

We remain focused on maintaining a healthy balance sheet with our objective of achieving a net positive cash position. Operating cash flow was $12.2 million, and year-to-date, we've generated $38 million in free cash flow. We ended Q3 2025 with $101.2 million in cash, cash equivalents and restricted cash and importantly, a stronger liquidity position. In summary, Q3 reflects disciplined execution, profitability improvement and continued financial progress.

我們將繼續專注於維持健康的資產負債表，以實現淨現金為正的目標。營運現金流為 1,220 萬美元，今年迄今，我們已產生 3,800 萬美元的自由現金流。截至 2025 年第三季末，我們擁有 1.012 億美元的現金、現金等價物和受限現金，更重要的是，我們的流動性狀況更加強勁。總而言之，第三季體現了嚴謹的執行、獲利能力的提升和持續的財務進展。

We entered the fourth quarter with confidence, despite typical seasonal factors, fewer shipping days, holiday-related customer acceptances and budget timing. While those dynamics remain, we expect solid demand and our execution to offset the usual headwinds. We expect revenue between $275 million and $285 million and anticipate a non-GAAP operating margin of 3.5% to 7.5%. We expect OpEx to remain relatively flat compared to Q3. We look forward to a strong finish to the year and remain focused on driving sustainable growth and maximizing long-term stockholder value.

儘管面臨典型的季節性因素、出貨天數減少、假日相關的客戶驗收以及預算時間表等問題，我們仍然充滿信心地進入了第四季度。儘管這些因素依然存在，但我們預期強勁的需求和我們的執行力將抵消通常的不利因素。我們預計營收將在 2.75 億美元至 2.85 億美元之間，並預期非 GAAP 營業利潤率為 3.5% 至 7.5%。我們預計營運支出將與第三季相比保持相對穩定。我們期待今年能取得強勁的收官成績，並將繼續專注於推動永續成長和最大化股東長期價值。

I now turn the call back to Tom for some concluding remarks.

現在我把電話轉回給湯姆，請他做些總結性發言。

Thanks, Tim. I think we'll open up to some questions first. Carly, at this point, we can open up the question queue for any questions people may have.

謝謝你，提姆。我想我們先來回答一些問題。卡莉，現在我們可以開放提問隊列，大家可以提出任何問題。

(Operator Instructions) Michael Genovese, Rosenblatt Securities.

（操作說明）邁克爾·傑諾維斯，羅森布拉特證券。

I guess my first question is, looking at the Access & Aggregation and the comments on the European customers there as well as the information put out by ADTRAN Networks in Europe talking about, I think, a little bit of a timing change. So my question is, is there -- was there like a pushout of some things? I mean I know the first half of the year tends to be seasonally stronger than the second half in that Access & Aggregation European business. But versus prior expectations, was there some kind of push out in the timing of some of those shipments?

我想問的第一個問題是，根據存取和聚合以及歐洲客戶的評論，還有 ADTRAN Networks 在歐洲發布的關於時間安排略有變化的資訊。所以我的問題是，是否存在某種形式的排擠？我的意思是，我知道歐洲的接取與聚合業務通常上半年比下半年更具季節性優勢。但與先前的預期相比，部分貨物的出貨時間是否有所延後？

There has been -- there's been, let's say, I don't -- push out alludes to the fact that there may be some risk in that. I don't think there's any risk, but there has been some changing in some of the timing. We have two big customers that tend to be front-end loaded. In fact, they're two of our biggest customers in the year. And then one of the customers has a calendar that is offset from typical -- their financial calendar is different. So that means budget cycles are different. But yes, there's always some puts and takes. So the answer is yes.

一直以來——比如說，我不——「推出」暗示著這樣做可能存在一些風險。我不認為有任何風險，但某些時間安排上確實發生了一些變化。我們有兩個大客戶，他們的付款往往前期投入較大。事實上，他們是我們全年最大的兩位客戶。然後，其中一位客戶的日曆與典型的日曆有所不同——他們的財務日曆不一樣。這意味著預算週期有所不同。但沒錯，總是會有一些付出和收穫。所以答案是肯定的。

Okay. And I'm sorry, I just -- in terms of what you said, I think you gave us an update on the real estate, but I was a little bit -- just I couldn't follow exactly what you said about. So could you talk about that again?

好的。抱歉，我剛才——就您剛才說的而言，我認為您向我們介紹了房地產的最新情況，但我有點——我沒能完全理解您說的內容。您能再談談這件事嗎？

Sure. Basically, what Tim mentioned was, we have put both buildings back on to the market. We are actually receiving -- we've got multiple offers coming in, right, Tim? Let me let you cover that. Go ahead.

當然。提姆提到的情況是，我們已經將這兩棟大樓重新推出市場。我們確實收到了——我們已經收到了好幾個offer，對吧，蒂姆？讓我來負責這件事。前進。

We've -- in this past quarter, where we left off, we are under an exclusivity agreement, and we pulled the buildings down while we were working through that. As we disclosed last quarter, they're back on the market and very actively being marketed. Both the parts of the campus, we have interests from multiple parties and are having regular conversations.

上個季度，也就是我們上次說到的地方，我們受到排他性協議的約束，所以我們在履行協議期間拆除了那些建築物。正如我們上個季度所披露的，它們已經重返市場，並且正在積極進行市場推廣。校園的兩個部分都涉及多方利益，我們正在進行定期對話。

Okay. And then finally, I'm just going to -- kind of a bigger picture question, which is, traditionally, telecom has not been a super-fast growth market, right? It's the telecom in general is a single-digit growth market. So if ADTRAN is going to grow higher than that on the top line and be more of like a high single or double-digit growth company, is it because there's fundamental acceleration in what you're doing in fiber and access or you're gaining share? Or is there some repositioning to higher growth markets like more data center exposure? Like what -- just how do we think about 2026 and sort of what the drivers of the business are from a high level?

好的。最後，我想問一個更宏觀的問題，那就是，傳統上，電信市場並不是一個成長速度非常快的市場，對吧？電信業整體而言是一個個位數成長的市場。所以，如果 ADTRAN 的營收成長超過這個數字，成為一家高個位數或兩位數成長的公司，是因為其在光纖和接入領域的業務實現了根本性的加速發展，還是因為其市場份額正在不斷擴大？或者，是否有可能進行一些策略調整，轉向成長更快的市場，例如增加資料中心業務？例如──我們該如何看待 2026 年，以及從宏觀層面來看，推動業務發展的因素是什麼？

Yes. So I kind of agree with everything you're saying. I mean you typically see the telecom market in the single digits, kind of mid-to-high single digits and it kind of varies year-to-year from there. Our premise has been, there is that typical growth. We do believe markets in general are that -- effectively that the focus right now on data center -- speeds and data center capacity is starting to affect the overall market, although I don't think that's really in numbers today. But the premise is, there's a significant market share disruption that's happening in Europe right now, and we are the number 1 winner in that market share grab that's going on in Europe. I mean the largest player in Europe is being displaced.

是的。所以，我基本上同意你說的所有觀點。我的意思是，電信市場通常以個位數成長，或者說是中高個位數成長，而且每年都會有所波動。我們的前提是，存在典型的成長。我們確實認為，目前市場整體上——實際上，目前對資料中心速度和資料中心容量的關注正在開始影響整個市場，儘管我認為今天還沒有真正體現在數字上。但前提是，目前歐洲正在發生一場重大的市佔率顛覆，而我們是這場歐洲市佔率爭奪戰的最大贏家。我的意思是，歐洲最大的玩家正在被取代。

Last follow-up on that. Is there anything incrementally in Germany happening where -- I believe that Germany had already decided to kind of cap Huawei, but I'm not sure if they ripped and replaced yet. Could that become something incremental actual rip and replacing of Huawei?

最後跟進一下。德國是否有任何逐步推進的措施——我相信德國已經決定限制華為，但我不確定他們是否已經徹底取締並替換了華為。這是否會演變成逐步徹底剝離和替換華為？

Yes, they could. I think over time, rip and replace is going to have to happen everywhere just because you have to maintain the network and you can't be getting new drops of code all the time. There are -- as you know, there's been a lot of talk over the last few weeks about trying to accelerate that process in Germany. I don't think there's been any material rip and replace at this point in time. I think what they've been trying to do is effectively cap utilization on an ongoing basis.

是的，他們可以。我認為隨著時間的推移，到處都需要徹底的替換，因為你必須維護網絡，而你不可能總是獲得新的程式碼。正如你所知，過去幾週以來，關於在德國加快這一進程的討論很多。我認為目前還沒有進行任何材料拆除和更換。我認為他們一直在努力做的，是持續有效地限制能源利用率。

Ryan Koontz, Needham & Company.

Ryan Koontz，Needham & Company。

I want to ask about Optical. It looks like the best quarter you've had there in a couple of years. Tom, any color you can give us in terms of trends in terms of product mix, geo mix within the Optical domain would be helpful because Optical is obviously gaining a lot of momentum with regard to cloud and AI spend really starting to ramp up.

我想諮詢一下光學方面的問題。看起來這是你們近幾年來業績最好的一個季度。Tom，如果你能就光學領域的產品組合和地理組合趨勢提供一些信息，那就太好了，因為光學領域顯然正在獲得很大的發展勢頭，雲端運算和人工智慧支出也開始真正加速成長。

Yes. I would agree with you on what the outcome of the quarter was, and I would tell you that the momentum there is strong. It's both in the US and in Europe. The quarter was definitely helped though by us picking up a larger Tier 1 in Europe, and we started initial shipments into that carrier. But we've kind of seen a dethaw kind of across the market, most notably in Europe though. So we're expecting a good year next year as well.

是的。我同意你對本季業績的看法，而且我認為目前的成長勢頭非常強勁。它在美國和歐洲都有。本季業績確實得益於我們收購了歐洲一家規模較大的一級承運商，我們開始向該承運商進行初步出貨。但我們已經看到整個市場出現了某種程度的解凍，尤其是在歐洲。所以我們預計明年也會是個好年。

Great. And as Mike mentioned about the Huawei displacement opportunities, I mean, how would you broadly characterize those today with regards to deals you've won as well as prospective deals you hope to like win in the next 12 months, relative to revenue opportunity?

偉大的。正如麥克提到的華為取代機會，我的意思是，就您目前已贏得的交易以及您希望在未來 12 個月內贏得的潛在交易而言，您會如何概括地描述這些機會，以及它們帶來的收入機會？

Yes. So it has been a significant positive influence even going through the downturn with what we've won. But if you look at the number of carriers that have actually converted, like there's some discussion here on Germany, they've been slow. And that momentum continues to build quarter-over-quarter. It definitely is impacting our numbers now, and that impact will grow over the next two to three years. So it's definitely a positive mover.

是的。所以，即使經歷了經濟低迷時期，我們所取得的成就也產生了顯著的正面影響。但如果你看看實際完成轉換的運營商數量，例如這裡討論的德國，他們的轉換速度很慢。而且這種勢頭還在逐季增強。這無疑已經對我們的數據產生了影響，而且這種影響將在未來兩到三年內加劇。所以這絕對是一個正面的訊號。

I -- let me add a little because I think there are different dynamics in the access versus optical space. I think there's a good chance that optical will probably -- we will see an increase in momentum earlier on in the optical space. Access has been a constant just move, but there's millions of customers that are involved versus -- and because of that widespread infrastructure versus kind of optical moves on a project-by-project basis.

我——讓我補充一點，因為我認為存取和光領域存在不同的動態。我認為光學領域很有可能——我們可能會在光學領域更早看到發展勢頭增強。接入一直是持續不斷的進步，但涉及數百萬客戶，因此，基礎設施的廣泛應用與逐個項目進行的光學遷移截然不同。

Got it. Great. And maybe one on margins, if I could sneak it in around -- are you guys happy with where you're at here at 42% non-GAAP? And do you think this is where you got it pegged or is there further upside we can aim for?

知道了。偉大的。如果可以的話，我想再補充一點關於利潤率的問題——你們對目前 42% 的非 GAAP 利潤率滿意嗎？你認為這就是你預測的正確位置嗎？還是說還有進一步上漲的空間？

No, our longer-term goal is 43%, and I think we're within line of sight to that. I think we'll be bumping up against that next year.

不，我們的長期目標是 43%，我認為我們離這個目標很近了。我認為我們明年就會遇到這個問題。

Christian Schwab, Craig-Hallum.

克里斯蒂安·施瓦布，克雷格·哈勒姆。

Great. Some other players in the space have started mentioning that they've got their first BEAD orders. Would you anticipate an improved BEAD spending environment possibly impact you in calendar '26?

偉大的。該領域的其他一些參與者已經開始提到他們已經收到了第一批 BEAD 訂單。您認為 BEAD 消費環境的改善可能會在 2026 年對您產生影響嗎？

Yes. That's an easy bar, but yes. I mean it's starting to -- it's been dead now for a while, but it's definitely going to -- there's a whole lot more activity going on there. So the answer is yes.

是的。那隻是個簡單的門檻，但沒錯。我的意思是，它開始——它已經沉寂了一段時間，但它肯定會——那裡正在發生更多的事情。所以答案是肯定的。

Is that something that you guys would anticipate seeing orders in the first half of calendar '26? Or is that yet to be determined?

你們預計 2026 年上半年會看到這樣的訂單嗎？或者，這還有待確定？

I think we'll see orders in the first half of '26.

我認為我們會在 2026 年上半年看到訂單。

Great. And then, you guys talked about operating margin expansion in 2026. I know you've outlined the goal of getting to double digits eventually. But what should we think about the potential for operating margin expansion in calendar '26?

偉大的。然後，你們討論了2026年營業利益率擴張的問題。我知道你們已經訂定了最終達到兩位數的目標。但我們該如何看待 2026 年營業利潤率擴張的潛力呢？

We expect to have expansion in '26. I mean, I think the key to us -- so gross margins have been fairly consistent and have been, I would say, over time, upwardly moving. The whole key to us is the operating expense line. That, of course, is impacted by FX, but the operating expense line on a kind of constant currency basis, were -- if you look at year-over-year, were at high 90s, which equates to kind of where we are right now. So we've been holding it firm.

我們預計在 2026 年實現擴張。我的意思是，我認為對我們來說，關鍵在於毛利率一直相當穩定，而且隨著時間的推移，毛利率一直在上升。對我們來說，關鍵在於營運費用這一項。當然，這會受到匯率的影響，但以固定匯率計算，營運費用項——如果你看一下同比數據，你會發現高達 90% 以上，這和我們現在的情況差不多。所以我們一直堅持立場。

I think the real question is, how long can you hold it firm? Our belief at this point in time is that we have enough R&D firepower and the right product set to not have to substantially increase the R&D spend. We will be -- we'll continue to -- we have sales expense that is variable depending on the revenue to some extent. But structurally-wise, we don't see big movements right now required to get us to that kind of $300 million-ish, north of $300 million level, which kind of gets us to our target. So I would expect expansion through next year.

我認為真正的問題是，你能堅持多久？我們目前認為，我們擁有足夠的研發實力和合適的產品組合，無需大幅增加研發支出。我們將——我們將繼續——我們的銷售費用在一定程度上取決於收入，因此會發生變化。但從結構上看，我們目前看不到需要進行重大調整才能達到 3 億美元左右甚至更高的水平，而這就能讓我們實現目標。所以我預計明年會繼續擴張。

But Tim, let me let you answer it. Any comments on that?

但是提姆，還是讓你來回答這個問題吧。對此有何評論？

I think as we continue the expansion, you'll see $300 million in second half of next year or late -- or early 2027. And I think on a constant currency basis, you get to the double-digits once you get somewhere around $315 million in revenue.

我認為隨著我們繼續擴張，明年下半年或 2027 年底或年初，您將會看到 3 億美元的收入。我認為，以固定匯率計算，一旦營收達到 3.15 億美元左右，利潤率就能達到兩位數。

George Notter, Wolfe Research.

喬治諾特，沃爾夫研究公司。

I guess I'm just curious about the minority interest in the business with the old ADVA shareholders. Any new perspectives there? Would you -- did you redeem any shares in the quarter? Any new thoughts in terms of how you deal with that obligation going forward would be great.

我只是對老 ADVA 股東在公司中的少數股權感到好奇。有什麼新的視角嗎？請問—您在本季度是否贖回了任何股份？對於今後如何處理這項義務，如果您有任何新的想法，歡迎分享。

Well, we're happy if they redeem at this point. So we would like to see some. I think there was one redemption in the quarter, will, Tim?

如果他們能在這個時候兌現承諾，我們就很高興了。所以我們希望能看到一些。我覺得這季度應該要有一次贖回，對吧，提姆？

It's in the subsequent events. It happened early this quarter. But yes, we continue to see nominal activity and expect there to be some level of run rate.

答案就在隨後的事件中。這件事發生在本季初。但是，我們確實看到名義上的經濟活動仍在繼續，並預計會有一定的運行速度。

Yes. But nothing worth sharing. And like I said, it's -- well, that stock is trading up right now, if you take a look at over the last six months. But redemptions are a good thing at this point.

是的。但沒什麼好分享的。正如我所說，這支股票——嗯，如果你看一下過去六個月的走勢，你會發現它目前正在上漲。但就目前而言，救贖是件好事。

Got it. Would you look to do anything proactive? I mean, obviously, you did the financing this quarter. Would you look to get more proactive with those shareholders? Is that something that's in the cards at this point or does it hinge on selling the buildings in Huntsville? Like how do you think about that?

知道了。你會採取任何積極主動的措施嗎？我的意思是，很明顯，這季度的融資是由你們完成的。你會考慮更積極主動地與這些股東溝通嗎？目前來看，這件事有可能發生嗎？還是說這取決於能否賣掉亨茨維爾的那些大樓？你對此有何看法？

Without a doubt, selling that building does give us substantially more headroom. My sense is, we'd be getting more actively on that base towards the tail end of next year. We're probably still a little -- a few quarters away from that. Having said that, redemptions are a good thing.

毫無疑問，賣掉那棟大樓確實能為我們帶來更大的迴旋餘地。我的感覺是，到明年年底，我們會更積極地利用這個基地。我們可能離目標還有一段距離──大概幾季吧。話雖如此，救贖也是一件好事。

Tim Savageaux, Northland Capital Markets.

Tim Savageaux，北地資本市場。

A non-core asset question to start with, and that centers on the old ADVA kind of sync and timing business. I assume you capture that in Optical, although I really don't know. That's one question. And I wonder if you can give us a sense of the dynamics around the business, kind of overall size, growth rate, profitability? Anything you can share along those lines? And I have a follow-up.

首先，我們來討論一個非核心資產問題，這個問題主要圍繞著先前的 ADVA 式同步和計時業務。我猜你是用光學方式捕捉到的，雖然我真的不太確定。這是一個問題。我想請您介紹貴公司的業務動態，例如整體規模、成長率和獲利能力？這方面有什麼可以分享的嗎？我還有一個後續問題。

Yes, it is in the Access & Agg business. We really don't break that out separately, but it's in the Access & Agg category. It is growing. As you know, we're doing kind of a relook at that business and segmenting that business to be able to -- that is a different business. It is a different selling rhythm, different sales type of, I'll say, people, but it's really different contacts within the different customer bases. So we are in the midst right now of, let's say, readjusting how that business operates.

是的，它從事的是Access & Agg業務。我們並沒有單獨列出這一項，但它屬於存取和聚合類別。它正在發展壯大。如您所知，我們正在對這項業務進行重新審視，並對其進行細分，以便能夠——這是一項不同的業務。銷售節奏不同，銷售對像也不同，但更重要的是，不同客戶群內部的溝通方式也不同。所以，我們現在正處於調整該業務運作方式的過程中。

Okay. And can you hear me?

好的。你聽得到我說話嗎？

Yes. Yes, go ahead.

是的。好的，請繼續。

Okay. Sorry. The second question was going to be on any impact from memory prices, especially on the subscriber side of the business and what you're seeing there?

好的。對不起。第二個問題是關於記憶體價格是否會對業務產生影響，特別是對用戶端業務的影響，以及您觀察到的情況？

There has been some -- well, that's been over some period of time, but nothing that's -- I would say the gross margin in that business, we've been able to keep -- let me think about the proper answer. The gross margin of that business, we've been able to keep at a fairly constant level over the last few quarters and think we'll be able to do that on a going-forward basis. A lot of that is just churn on different -- that business churns, we have new generations of subscriber product. We have more new generation of subscriber product than any other product in our portfolio.

過去一段時間確實出現過一些情況，但沒有什麼——我想說的是，我們在這個行業的毛利率一直保持著——讓我想想合適的答案。在過去的幾個季度裡，我們一直能夠將該業務的毛利率保持在相當穩定的水平，並且我們認為未來也能繼續保持這一水平。很多時候只是不同產品的更迭——業務更迭，我們有新一代的訂閱產品。我們擁有的新一代用戶訂閱產品比我們產品組合中的任何其他產品都多。

Got it. Maybe one more for me. You mentioned starting to ramp with one of the Tier 1 European wins, I guess, on the Optical side. And I think that win included Access as well. So do you expect that to start ramping soon? And anything else to call out in terms of upcoming Tier 1 ramps here in the next quarter or 2?

知道了。也許我還能再來一個。我猜你有提到，在光學方面，你打算先拿下歐洲一級聯賽的勝利，然後開始穩步提升。我認為這次勝利也包括了 Access。你預計這種情況很快就會開始加速嗎？關於未來一、兩個季度即將開通的一級出口通道，還有其他需要特別注意的地方嗎？

Yes. I think that one will -- it will take longer. The optical thing was incredibly quick. And there was a lot of work that went in front of that in order to make that happen so quick. I think all the access portion will take longer, but we'd expect to see movement of that next year.

是的。我認為那一個——會花更長時間。光學檢測速度非常快。為瞭如此迅速地實現這一點，之前做了很多工作。我認為所有准入環節都需要更長時間才能完成，但我們預計明年會看到進展。

And in general, everything is moving forward, not at the same -- at the pace that we would like, but everything in Europe is moving forward. We haven't lost any pieces. The other ones that we've talked about in the past with very specific -- there is some rip and replace going on in different parts of Europe. That is moving forward. So I think all of that would just be kind of a positive tailwind next year.

總的來說，一切都在向前發展，雖然速度不盡相同，也並非我們所期望的那樣，但歐洲的一切都在向前發展。我們沒有遺失任何零件。我們過去曾非常具體地討論過其他一些問題——歐洲不同地區正在進行一些徹底的重建和替換。這是向前邁進。所以我覺得明年所有這些都會變成一種積極的順風。

There are no further questions at this time. I'll now turn the call back over to Tom Stanton for closing remarks.

目前沒有其他問題了。現在我將把電話交還給湯姆·史丹頓，請他作總結發言。

Okay. Thanks very much for joining us on our conference call. And I really would like to extend my appreciation to our teams around the world. Thank you for everything that you do. I also want to thank our stockholders and our customers and partners for the confidence and the collaboration that you've shown us over the last year. So thanks very much, everyone.

好的。非常感謝您參加我們的電話會議。我真心想對我們世界各地的團隊表示感謝。感謝你所做的一切。我還要感謝我們的股東、客戶和合作夥伴在過去一年中給予我們的信任和合作。非常感謝大家。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝各位的參與。您現在可以斷開連線了。