ADTRAN, Inc. Reports Results for First Quarter 2010 and Declares Quarterly Cash Dividend
HUNTSVILLE, Ala.--(BUSINESS WIRE)-- ADTRAN, Inc. (NASDAQ:ADTN) reported results for the first quarter of 2010. Sales increased 15% to $127,027,000 for the quarter, compared to $110,364,000 for the first quarter of 2009. Net income increased 20% to $18,194,000 for the quarter, compared to $15,184,000 for the first quarter of 2009. Earnings per share, assuming dilution, were $0.29 for the quarter, compared to $0.24 for the first quarter of 2009.
ADTRAN Chief Executive Officer Tom Stanton stated, “We are pleased with our first quarter results which were driven by accelerating deployments of our wide portfolio of converged access solutions. Our Broadband Access category led the increase in revenue growing a notable 64% over the prior year and setting a new record level. Internetworking revenues also showed an impressive performance posting 45% year over year growth. The broad based increase in revenue points to the success of our positioning in an environment where carriers and enterprises are selectively accelerating investment to realize benefit from this new era of converged services.”
The Company also reported that the provision for income taxes in the first quarter of 2010 was higher due to delays in federal legislation required to extend research tax credits for the 2010 year.
The Company reported that stock-based compensation expense for the first quarter of 2010 reduced diluted earnings per share by $0.02 compared to $0.03 for the first quarter of 2009.
The Company also announced that its Board of Directors declared a cash dividend for the first 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 April 29, 2010. The ex-dividend date is April 27, 2010 and the payment date is May 13, 2010.
The Company confirmed that its first quarter conference call will be held Wednesday, April 14, 2010 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 copper, fiber, and wireless 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. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.
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Condensed Balance Sheet |
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Unaudited |
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(In thousands) |
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March 31, 2010 |
December 31, 2009 |
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| Assets | ||||||
| Cash and cash equivalents | $ | 26,939 | $ | 24,135 | ||
| Short-term investments | 137,284 | 172,469 | ||||
| Accounts receivable, net | 74,140 | 68,044 | ||||
| Other receivables | 10,052 | 4,097 | ||||
| Inventory, net | 47,799 | 45,674 | ||||
| Prepaid expenses | 3,118 | 2,795 | ||||
| Deferred tax assets, net | 8,787 | 8,603 | ||||
| Total current assets | 308,119 | 325,817 | ||||
| Property, plant and equipment, net | 74,132 | 74,309 | ||||
| Other assets | 2,133 | 2,168 | ||||
| Long-term investments | 214,616 | 162,169 | ||||
| Total assets | $ | 599,000 | $ | 564,463 | ||
| Liabilities and Stockholders' Equity | ||||||
| Accounts payable | $ | 34,771 | $ | 25,782 | ||
| Unearned revenue | 8,282 | 7,138 | ||||
| Accrued expenses | 4,808 | 4,202 | ||||
| Accrued wages and benefits | 10,077 | 7,634 | ||||
| Income tax payable, net | 11,705 | 3,017 | ||||
| Total current liabilities | 69,643 | 47,773 | ||||
| Deferred tax liabilities, net | 6,192 | 5,035 | ||||
| Other non-current liabilities | 11,413 | 11,390 | ||||
| Bonds payable | 47,750 | 47,750 | ||||
| Total liabilities | 134,998 | 111,948 | ||||
| Stockholders' equity | 464,002 | 452,515 | ||||
| Total liabilities and stockholders' equity | $ | 599,000 | $ | 564,463 | ||
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Consolidated Statements of Income |
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(In thousands, except per share data) |
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Unaudited |
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| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2010 | 2009 | |||||||
| Sales | $ | 127,027 | $ | 110,364 | ||||
| Cost of Sales | 51,699 | 42,904 | ||||||
| Gross Profit | 75,328 | 67,460 | ||||||
| Selling, general and administrative expenses | 27,204 | 23,697 | ||||||
| Research and development expenses | 22,779 | 20,862 | ||||||
| Operating income | 25,345 | 22,901 | ||||||
| Interest and dividend income | 1,527 | 1,638 | ||||||
| Interest expense | (603 | ) | (603 | ) | ||||
| Net realized investment gain (loss) | 2,192 | (3,198 | ) | |||||
| Other expense, net | (187 | ) | (135 | ) | ||||
| Income before provision for income taxes | 28,274 | 20,603 | ||||||
| Provision for income taxes | (10,080 | ) | (5,419 | ) | ||||
| Net Income | $ | 18,194 | $ | 15,184 | ||||
| Weighted average shares outstanding - basic | 61,999 | 62,123 | ||||||
| Weighted average shares outstanding - diluted (1) | 63,060 | 62,586 | ||||||
| Earnings per common share - basic | $ | 0.29 | $ | 0.24 | ||||
| Earnings per common share - diluted (1) | $ | 0.29 | $ | 0.24 | ||||
| (1) Assumes exercise of dilutive stock options calculated under the treasury stock method. | ||||||||
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Supplemental Information |
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Stock Based Compensation Expense |
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(In thousands) |
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| Three months ended | ||||||||
| March 31, | ||||||||
| 2010 | 2009 | |||||||
| Stock-based compensation expense included in cost of sales | $ | 68 | $ | 71 | ||||
| Selling, general and administrative expense | 750 | 828 | ||||||
| Research and development expense | 871 | 920 | ||||||
| Stock-based compensation expense included in operating expenses | 1,621 | 1,748 | ||||||
| Total stock-based compensation expense | 1,689 | 1,819 | ||||||
| Tax benefit for expense associated with non-qualified options | (177 | ) | (185 | ) | ||||
| Total stock-based compensation expense, net of tax | $ | 1,512 | $ | 1,634 | ||||
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Consolidated Statements of Cash Flow |
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Unaudited |
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(In thousands) |
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| Three months ended | ||||||||
| March 31, | ||||||||
| 2010 | 2009 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 18,194 | $ | 15,184 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 2,593 | 2,507 | ||||||
| Amortization of net premium on available-for-sale investments | 1,102 | 803 | ||||||
| Net realized (gain) loss on long-term investments | (2,181 | ) | 3,198 | |||||
| Net (gain) loss on disposal of property, plant and equipment | (3 | ) | 1 | |||||
| Stock-based compensation expense | 1,689 | 1,819 | ||||||
| Deferred income taxes | (1,768 | ) | (1,765 | ) | ||||
| Tax benefit from stock option exercises | 437 | (41 | ) | |||||
| Excess tax benefits from stock-based compensation arrangements | (373 | ) | 37 | |||||
| Change in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (6,096 | ) | (4,086 | ) | ||||
| Other receivables | (5,955 | ) | (355 | ) | ||||
| Inventory | (2,125 | ) | (2,285 | ) | ||||
| Prepaid expenses and other assets | (371 | ) | 313 | |||||
| Accounts payable | 8,989 | 2,923 | ||||||
| Accrued expenses and other liabilities | 4,211 | (33 | ) | |||||
| Income tax payable, net | 8,688 | 6,248 | ||||||
| Net cash provided by operating activities | 27,031 | 24,468 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant and equipment | (2,329 | ) | (2,356 | ) | ||||
| Proceeds from sales and maturities of available-for-sale investments | 56,084 | 63,741 | ||||||
| Purchases of available-for-sale investments | (64,956 | ) | (66,772 | ) | ||||
| Net cash used in investing activities | (11,201 | ) | (5,387 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from stock option exercises | 2,340 | 49 | ||||||
| Purchases of treasury stock | (10,330 | ) | (1,430 | ) | ||||
| Dividend payments | (5,577 | ) | (5,568 | ) | ||||
| Excess tax benefits from stock-based compensation arrangements | 373 | (37 | ) | |||||
| Net cash used in financing activities | (13,194 | ) | (6,986 | ) | ||||
| Net increase in cash and cash equivalents | 2,636 | 12,095 | ||||||
| Effect of exchange rate changes | 168 | 9 | ||||||
| Cash and cash equivalents, beginning of period | 24,135 | 41,909 | ||||||
| Cash and cash equivalents, end of period | $ | 26,939 | $ | 54,013 | ||||
CONTACT:
ADTRAN, Inc.
Jim Matthews, 256-963-8775
Senior Vice President/CFO
or
Investor Services/Assistance:
Gayle Ellis, 256-963-8220
KEYWORDS: United States North America Alabama
INDUSTRY KEYWORDS: Technology Consumer Electronics Hardware Internet Networks Telecommunications Other Technology Mobile/Wireless Professional Services Finance
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