Telecom Ramblings

PR Archives:  LatestBy Company By Date


Press Release -- April 9th, 2013
Source: ADTRAN
Tags:

ADTRAN, Inc. Reports Results for the First Quarter 2013 and Declares Quarterly Cash Dividend

HUNTSVILLE, Ala.--(BUSINESS WIRE)--Apr. 9, 2013-- ADTRAN, Inc. (NASDAQ:ADTN, news, filings) reported results for the first quarter 2013. For the quarter, sales were $143,013,000 compared to $134,735,000 for the first quarter of 2012. Net income was $7,890,000 for the quarter compared to $12,960,000 for the first quarter of 2012. Earnings per share, assuming dilution, were $0.13 for the quarter compared to $0.20 for the first quarter of 2012. Non-GAAP earnings per share for the quarter were $0.17 compared to $0.25 for the first quarter of 2012. The reconciliation between GAAP earnings per share, diluted, and non-GAAP earnings per share, diluted, is in the table provided.

ADTRAN Chief Executive Officer Tom Stanton stated, “Operating results for the quarter came in as expected with our domestic carrier business continuing to solidify and our overall revenue positively impacted by sequential growth internationally and in our Enterprise business. We believe our company is well positioned for an improving spending environment in our markets and strategic investments by our carrier customers.”

The Company also announced that its Board of Directors declared a cash dividend for the first quarter of 2013. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on April 25, 2013. The ex-dividend date is April 23, 2013 and the payment date is May 9, 2013.

Non-GAAP earnings per share exclude the effect of acquisition related expenses, amortizations and adjustments, and stock compensation expense.

The Company confirmed that its first quarter conference call will be held Wednesday, April 10, 2013 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://www.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://www.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. ADTRAN’s products enable voice, data, video and Internet communications across a variety of network infrastructures. ADTRAN solutions are currently in use by service providers, private enterprises, government organizations, and millions of individual users worldwide. For more information, please visit www.adtran.com.

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, 2012. 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)
March 31,
2013
December 31,
2012
Assets
Cash and cash equivalents $ 58,640 $ 68,457
Short-term investments 189,236 160,481
Accounts receivable, net 82,102 81,194
Other receivables 16,164 16,253
Inventory 95,767 102,583
Prepaid expenses 4,419 4,148
Deferred tax assets, net 12,972 13,055
Total Current Assets 459,300 446,171
Property, plant and equipment, net 77,781 80,246
Deferred tax assets, net 10,680 10,261
Goodwill 3,492 3,492
Other assets 12,599 13,482
Long-term investments 310,484 332,729
Total Assets $ 874,336 $ 886,381
Liabilities and Stockholders' Equity
Accounts payable $ 48,933 $ 42,173
Unearned revenue 33,563 38,051
Accrued expenses 11,117 10,309
Accrued wages and benefits 16,479 15,022
Income tax payable, net 1,585 1,211
Total Current Liabilities 111,677 106,766
Non-current unearned revenue 24,990 23,803
Other non-current liabilities 18,541 17,406
Bonds payable 46,000 46,000
Total Liabilities 201,208 193,975
Stockholders' Equity 673,128 692,406
Total Liabilities and Stockholders' Equity $ 874,336 $ 886,381
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2013 2012
Sales $ 143,013 $ 134,735
Cost of sales 73,336 60,648
Gross Profit 69,677 74,087
Selling, general and administrative expenses 30,603 33,111
Research and development expenses 32,511 24,795
Operating Income 6,563 16,181
Interest and dividend income 1,768 1,861
Interest expense (581 ) (588 )
Net realized investment gain 3,645 2,467
Other income (expense), net (1,672 ) 141
Income before provision for income taxes 9,723 20,062
Provision for income taxes (1,833 ) (7,102 )
Net Income $ 7,890 $ 12,960
Weighted average shares outstanding - basic 61,847 63,809
Weighted average shares outstanding - diluted (1) 62,030 64,849
Earnings per common share - basic $ 0.13 $ 0.20
Earnings per common share - diluted (1) $ 0.13 $ 0.20
(1) Assumes exercise of dilutive stock options calculated under the treasury stock method.
Consolidated Statements of Comprehensive Income
(Unaudited)
(In thousands)
Three Months Ended
March 31,
2013 2012
Net Income $ 7,890 $ 12,960
Other Comprehensive Income (Loss), net of tax:
Unrealized gains (losses) on available-for-sale securities (1,644 ) 6,757
Foreign currency translation 323 153
Other Comprehensive Income (Loss), net of tax (1,321 ) 6,910
Comprehensive Income, net of tax $ 6,569 $ 19,870
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three Months Ended
March 31,
2013 2012
Cash flows from operating activities:
Net income $ 7,890 $ 12,960
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 3,663 3,095
Amortization of net premium on available-for-sale investments 1,754 2,171
Net realized gain on long-term investments (3,645 ) (2,467 )
Net (gain) loss on disposal of property, plant and equipment 17 (214 )
Stock-based compensation expense 2,232 2,221
Deferred income taxes 715 (2,030 )
Tax benefit from stock option exercises - 1,492
Excess tax benefits from stock-based compensation arrangements - (1,153 )
Change in operating assets and liabilities:
Accounts receivable, net (1,306 ) 1,334
Other receivables (224 ) 1,706
Inventory 6,540 (8,005 )
Prepaid expenses and other assets (217 ) (710 )
Accounts payable 7,262 1,831
Accrued expenses and other liabilities 1,188 5,287
Income tax payable, net 379 7,017
Net cash provided by operating activities 26,248 24,535
Cash flows from investing activities:
Purchases of property, plant and equipment (735 ) (4,086 )
Proceeds from disposals of property, plant and equipment - 266
Proceeds from sales and maturities of available-for-sale investments 118,133 69,364
Purchases of available-for-sale investments (125,411 ) (95,646 )
Net cash used in investing activities (8,013 ) (30,102 )
Cash flows from financing activities:
Proceeds from stock option exercises 55 3,560
Purchases of treasury stock (22,546 ) -
Dividend payments (5,586 ) (5,739 )
Excess tax benefits from stock-based compensation arrangements - 1,153
Net cash used in financing activities (28,077 ) (1,026 )
Net decrease in cash and cash equivalents (9,842 ) (6,593 )
Effect of exchange rate changes 25 153
Cash and cash equivalents, beginning of period 68,457 42,979
Cash and cash equivalents, end of period $ 58,640 $ 36,539

Supplemental Information
Acquisition Related Expenses, Amortizations and Adjustments
(Unaudited)
(In thousands)

On August 4, 2011, we closed on the acquisition of Bluesocket, Inc. and on May 4, 2012, we closed on the acquisition of the Nokia Siemens Networks Broadband Access business (NSN BBA). Acquisition related expenses, amortizations and adjustments for the three months ended March 31, 2013 and 2012 for both transactions are as follows:

Three Months Ended
March 31,
2013 2012
Bluesocket, Inc. acquisition
Amortization of acquired intangible assets and other purchase accounting adjustments $ 293 $ 484
NSN BBA acquisition
Amortization of acquired intangible assets 294 -
Amortization of other purchase accounting adjustments 410 -
Acquisition related professional fees, travel and other expenses 154 1,580
Subtotal 858 1,580
Total acquisition related expenses, amortizations and adjustments 1,151 2,064
Tax effect (380 ) (803 )
Total acquisition related expenses, amortizations and adjustments, net of tax $ 771 $ 1,261

The acquisition related expenses, amortizations and adjustments above were recorded in the following Consolidated Statements of Income categories for the three months ended March 31, 2013 and 2012:

Three Months Ended
March 31,
2013 2012
Revenue (adjustments to deferred revenue recognized in the period) $ 262 $ 146
Cost of goods sold 87 137
Subtotal 349 283
Selling, general and administrative expenses 161 1,561
Research and development expenses 641 220
Subtotal 802 1,781
Total acquisition related expenses, amortizations and adjustments 1,151 2,064
Tax effect (380 ) (803 )
Total acquisition related expenses, amortizations and adjustments, net of tax $ 771 $ 1,261
Supplemental Information
Stock-based Compensation Expense
(Unaudited)
(In thousands)
Three Months Ended
March 31,
2013 2012
Stock-based compensation expense included in cost of sales $ 106 $ 101
Selling, general and administrative expense 1,063 1,051
Research and development expense 1,063 1,069
Stock-based compensation expense included in operating expenses 2,126 2,120
Total stock-based compensation expense 2,232 2,221
Tax benefit for expense associated with non-qualified options (307 ) (301 )
Total stock-based compensation expense, net of tax $ 1,925 $ 1,920
Reconciliation of GAAP net income per share, diluted, to
Non-GAAP net income per share, diluted
(Unaudited)
Three Months Ended
March 31,
2013 2012
GAAP earnings per common share – diluted $ 0.13 $ 0.20
Acquisition related expenses, amortizations and adjustments 0.01 0.02
Stock-based compensation expense 0.03 0.03
Non-GAAP earnings per common share – diluted $ 0.17 $ 0.25

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