Telecom Ramblings

PR Archives:  LatestBy Company By Date


Press Release -- January 18th, 2011
Source: ADTRAN
Tags: Earnings, Equipment, Exchange, Video

ADTRAN, Inc. Reports Record Results for Fourth Quarter 2010 and Declares Quarterly Cash Dividend

HUNTSVILLE, Ala., Jan 18, 2011 (BUSINESS WIRE) --

ADTRAN, Inc. (NASDAQ:ADTN, news, filings) reported results for the fourth quarter of 2010. Sales increased 33% to an all time record level of $165,329,000 for the quarter, compared to $124,231,000 for the fourth quarter of 2009. Operating income increased 71% to $44,857,000 for the quarter compared to $26,236,000 for the fourth quarter of 2009. Net income increased 93% to $35,960,000 for the quarter, compared to $18,615,000 for the fourth quarter of 2009. Earnings per share, assuming dilution, increased 93% to $0.56 for the quarter, compared to $0.29 for the fourth quarter of 2009.

ADTRAN Chief Executive Officer Tom Stanton stated, "Our fourth quarter results highlight the demand that has been building in our business as quarterly and yearly sales both achieved new record levels. Most notably in the quarter, total sales of our three growth categories increased 50% over the fourth quarter the prior year. This performance included individual records in each of these categories. Broadband Access saw growth of 75% over the fourth quarter the prior year led by expanding deployments of our Total Access 5000 platform and related services revenue. Our Internetworking category grew 37% over the fourth quarter the prior year as we continued to see growth across all of our distribution channels. Optical Access grew 24% over the fourth quarter the prior year, indicative of the strength we saw across all of our mobility products. We believe increasing customer investments are aligned well with our strategic areas of focus and that we are positioned well for long term growth."

The Company also reported that the provision for income taxes in the fourth quarter of 2010 included a benefit of $4.5 million as a result of federal legislation extending research tax credits for the 2010 year.

The Company reported that stock-based compensation expense for the fourth quarter of 2010 reduced diluted earnings per share by $0.03 compared to a reduction of $0.03 for the fourth quarter of 2009.

The Company also announced that its Board of Directors declared a cash dividend for the fourth quarter of 2010. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on February 3, 2011. The ex-dividend date is February 1, 2011 and the payment date is February 17, 2011.

The Company confirmed that its fourth quarter conference call will be held Wednesday, January 19, 2011 at 9:30 a.m. Central Time. This conference call will be web cast live through StreetEvents.com. To listen, simply visit the Investor Relations site at http://www.adtran.com or http://streetevents.com approximately 10 minutes prior to the start of the call and click on the conference call link provided.

An online replay of the conference call will be available for seven days at http://streetevents.com. In addition, an online replay of the conference call, as well as the text of the Company's earnings release, will be available on the Investor Relations site at http://www.adtran.com for at least 12 months following the call.

ADTRAN, Inc. is a leading global provider of networking and communications equipment, with a portfolio of more than 1,700 solutions for use in the last mile of today's telecommunications networks. Widely deployed by carriers and enterprises alike, ADTRAN solutions enable voice, data, video, and Internet communications across a variety of network infrastructures. ADTRAN solutions are currently in use by every major U.S. service provider and many global ones, as well as by thousands of public, private and governmental organizations worldwide.

For more information, contact the company at 800 9ADTRAN (800 923-8726) or via email at info@adtran.com. On the Web, visit www.adtran.com.

This press release contains forward-looking statements which reflect management's best judgment based on factors currently known. However, these statements involve risks and uncertainties, including the successful development and market acceptance of new products, the degree of competition in the market for such products, the product and channel mix, component costs, manufacturing efficiencies, and other risks detailed in our annual report on Form 10-K for the year ended December 31, 2009 and our quarterly report on Form 10-Q for the quarter ended September 30, 2010. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.

Condensed Consolidated Balance Sheet

Unaudited

(In thousands)

December 31,

2010

December 31,

2009

Assets
Cash and cash equivalents $ 31,677 $ 24,135
Short-term investments 157,479 172,469
Accounts receivable, net 70,893 68,044
Other receivables 3,962 4,097
Income tax receivable, net 2,741 -
Inventory 74,274 45,674
Prepaid expenses 3,270 2,795
Deferred tax assets, net 10,617 8,603
Total current assets 354,913 325,817
Property, plant and equipment, net 73,986 74,309
Other assets 1,915 2,168
Long-term investments 261,160 162,169
Total assets $ 691,974 $ 564,463
Liabilities and Stockholders' Equity
Accounts payable $ 22,785 $ 25,782
Unearned revenue 10,138 7,138
Accrued expenses 4,913 4,202
Accrued wages and benefits 12,125 7,634
Income tax payable, net - 3,017
Total current liabilities 49,961 47,773
Deferred tax liabilities, net 10,350 5,035
Other non-current liabilities 11,841 11,390
Bonds payable 47,500 47,750
Total liabilities 119,652 111,948
Stockholders' equity 572,322 452,515
Total liabilities and stockholders' equity $ 691,974 $ 564,463
Consolidated Statements of Income

Unaudited

(In thousands, except per share data)

Three Months Ended Twelve Months Ended
December 31, December,
2010 2009 2010 2009
Sales $ 165,329 $ 124,231 $ 605,674 $ 484,185
Cost of Sales 68,422 50,876 246,811 197,223
Gross Profit 96,907 73,355 358,863 286,962
Selling, general and administrative expenses 29,588 25,863 114,699 99,446
Research and development expenses 22,462 21,256 90,300 83,285
Operating income 44,857 26,236 153,864 104,231
Interest and dividend income 1,754 1,660 6,557 6,933
Interest expense (608 ) (605 ) (2,436 ) (2,430 )
Net realized investment gain (loss) 2,953 146 11,008 (1,297 )
Other income (expense), net (163 ) 59 (804 ) 131
Income before provision for income taxes 48,793 27,496 168,189 107,568
Provision for income taxes (12,833 ) (8,881 ) (54,200 ) (33,347 )
Net Income $ 35,960 $ 18,615 $ 113,989 $ 74,221
Weighted average shares outstanding - basic 63,007 62,586 62,490 62,459
Weighted average shares outstanding - diluted (1) 64,660 63,642 63,879 63,356
Earnings per common share - basic $ 0.57 $ 0.30 $ 1.82 $ 1.19
Earnings per common share - diluted (1) $ 0.56 $ 0.29 $ 1.78 $ 1.17
(1) Assumes exercise of dilutive stock options calculated under the treasury stock method.
Supplemental Information

Stock Based Compensation Expense

Unaudited

(In thousands)

Three Months Ended Twelve Months Ended
December 31, December 31,
2010 2009 2010 2009
Stock-based compensation expense included in cost of sales $ 107 $ 72 $ 317 $ 268
Selling, general and administrative expense 1,215 879 3,575 3,039
Research and development expense 1,168 1,041 3,825 3,680
Stock-based compensation expense included in operating expenses 2,383 1,920 7,400 6,719
Total stock-based compensation expense 2,490 1,992 7,717 6,987
Tax benefit for expense associated with non-qualified options (235 ) (181 ) (650 ) (634 )
Total stock-based compensation expense, net of tax $ 2,255 $ 1,811 $ 7,067 $ 6,353
Consolidated Statements of Cash Flow

Unaudited

(In thousands)

Twelve Months Ended
December 31,
2010 2009
Cash flows from operating activities:
Net income $ 113,989 $ 74,221
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 10,545 10,084
Amortization of net premium on available-for-sale investments 4,380 3,686
Net realized (gain) loss on long-term investments (11,008 ) 1,297
Net (gain) loss on disposal of property, plant and equipment 2 (31 )
Stock-based compensation expense 7,717 6,987
Deferred income taxes (1,324 ) (1,024 )
Tax benefit from stock option exercises 4,909 1,549
Excess tax benefit from stock-based compensation arrangements (4,404 ) (998 )
Change in operating assets and liabilities:
Accounts receivable, net (2,849 ) (15,143 )
Other receivables 135 (1,195 )
Income tax receivable, net (2,741 ) -
Inventory (28,600 ) 1,732
Prepaid expenses and other assets (574 ) (489 )
Accounts payable (2,997 ) 5,442
Accrued expenses and other liabilities 8,626 1,010
Income tax payable, net (3,017 ) 3,027
Net cash provided by operating activities 92,789 90,155
Cash flows from investing activities:
Purchases of property, plant and equipment (9,872 ) (8,740 )
Proceeds from sales and maturities of available-for-sale investments 275,442 186,193
Purchases of available-for-sale investments (340,489 ) (262,067 )
Acquisition of business, net of cash acquired - (1,370 )
Net cash used in investing activities (74,919 ) (85,984 )
Cash flows from financing activities:
Proceeds from stock option exercises 24,942 13,471
Purchases of treasury stock (18,316 ) (15,896 )
Dividend payments (22,502 ) (22,486 )
Payments on long-term debt (250 ) (500 )
Excess tax benefits from stock-based compensation arrangements 4,404 998
Net cash used in financing activities (11,722 ) (24,413 )
Net increase (decrease) in cash and cash equivalents 6,148 (20,242 )
Effect of exchange rate changes 1,394 2,468
Cash and cash equivalents, beginning of period 24,135 41,909
Cash and cash equivalents, end of period $ 31,677 $ 24,135

SOURCE: ADTRAN, Inc.

ADTRAN, Inc.
Jim Matthews, 256-963-8775
Senior Vice President/CFO
or
Investor Services/Assistance:
Gayle Ellis, 256-963-8220

PR Archives: Latest, By Company, By Date