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(RTTNews) - ADTRAN Holdings Inc. (ADTN) expects to record a material non-cash goodwill impairment in the first quarter of 2024 on the carrying amount of goodwill solely allocated to the Network Solutions segment in an estimated amount of $293 million.

The quantitative impairment assessment was triggered as a result of factors such as a decrease in the Company's market capitalization, cautious service provider spending due to economic uncertainty and continued customer inventory adjustments, the company said.

The company noted that the impairment leads to an increased GAAP operating loss for the first quarter 2024 by the same amount. It will not, however, result in any current or future cash expenditure and has no impact on the company's GAAP revenue and the non-GAAP operating margin guided for the first quarter 2024.

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