Network equipment vendor Adtran reported second quarter earnings that included a profit of $22.4 million, about 34 cents per share, on revenues of $131 million, but the bigger news coming out of Adtran's earning call was the observation that spending by Tier 2 carriers in general may slow down in the near future, and may already have slowed down--at least for Adtran--where Tier 2 telco Embarq is concerned.
The largest Tier 1 carriers have not appeared to have changed spending patterns yet during a rocky year economically in the telecom industry and other industries. A revenue scare among carriers late last year and early this year turned out not to be as bad as first thought. As second-quarter earnings reports unfold in the next few weeks, watch closely for other signs that Tier 2 telcos may be touching the brakes.
For more:
- check out this coverage [1] at Light Reading
Related articles:
Adtran entered the GPON market earlier this year. Adtran report [2]
Adtran reported a strong first quarter of 2008. Adtran report [3]
Links:
[1] http://www.lightreading.com/document.asp?doc_id=159060&f_src=lightreading_section_5
[2] http://www.fiercetelecom.com/story/tellabs-gpon-exits-verizon-adtran-adds-gpon/2008-04-02
[3] http://www.fiercetelecom.com/story/broadband-gear-sales-boost-fuels-adtran-q1/2008-04-16