ADTRAN Q2: Tighter carrier spending trends drive down net income to $21M
ADTRAN (Nasdaq: ADTN) is once again seeing the effects of service providers keeping a tighter rein on their purses in Q2.
During the quarter, sales declined to $183 million year-over-year from $184 in the same period last year. Likewise, net income was $21 million, down from $36 million in Q2 2011.
The vendor's earnings per share were $0.33 for the quarter compared to $0.56 for the second quarter of 2011.
"Our results for the second quarter reflect a tightening spending environment," said Tom Stanton, CEO of ADTRAN, in the earnings release. "Total quarterly revenues grew 37% sequentially, with organic revenues (excluding the recently acquired NSN BBA business) up 20%, representing a flat year over year performance."
As has been the case in previous quarter, the vendor continued to see growth in three key segments: broadband, internetworking, and core.
The broadband access and internetworking segments grew 38 and 6 percent over Q2 2011. Meanwhile, total core products, a category that includes broadband access, optical and internetworking, grew 17 percent (flat organically) over the same period a year ago and represent 84 percent of the company's total revenues.
Stanton said that "Decreasing visibility leaves us cautious for the near term but we are confident that our strong customer alignment and increasing global footprint will deliver long term growth for the company."
By acquiring Nokia Siemens Networks' broadband access portfolio, ADTRAN will be able to enhance its ability to serve existing and new international service providers.
The company's shares were trading at 22.80, down $4.39, or 16.15 percent in morning trading on the Nasdaq stock exchange.
- see the release
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