ADTRAN Q3 09: profits dip, but earnings beat expectations

At first blush there's not much to like about ADTRAN's Q3 09 report as the Huntsville, Ala.-based vendor reported that profit was down due to slow sales in the quarter. On the bright side, ADTRAN's Q3 earnings of $21.58 million or $0.34 per share from $22.41 million or $0.35 per share actually beat analyst expectations while costs were down year-over-year. Analysts polled by Thomson-Reuters expected the vendor to report earnings of $0.32 per share for Q3 09.

During the third quarter, ADTRAN saw its sales decline from $137,195,000 to $128,062,000. Net income was $21,583,000 for the quarter, compared to $22,411,000 for the third quarter of 2008. Finally, ADTRAN's earnings per share were $0.34 for the quarter, compared to $0.35 for Q3 08.

Two technology segments that did give ADTRAN a bit of a Q3 boost was broadband access and optical networking, which is attributed to ongoing broadband deployments and wholesale and wireless operators upgrading their wireless backhaul network capabilities. "Broadband Access revenues grew 29 percent as we saw increasing acceptance of our Carrier Ethernet and Broadband services platforms," said Tom Stanton, CEO of ADTRAN in a release. "Optical Access revenues showed impressive strength growing 20 percent as carriers increased investment in wireless bandwidth upgrades. Internet working revenues continued to expand as our success in this area continued to reflect the broad-based support we are seeing in our carrier distribution and value added reseller channels."

For more:
- see the release here [1]
- RTTNews has this article [2]

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