Adtran reported that second quarter 2015 revenues dropped year-over-year to $160 million, down from $176 million in the same period a year ago, due to sequential declines in its Business Networking and Loop Access product segments.
Business Networking and Loop Access revenue were $34.2 million and $6.9 million, down from $35.4 and $7.02 million, respectively.
The company's net profit fell to $2.5 million from $14.4 million, with diluted earnings per share going to 5 cents from 26 cents. Non-GAAP EPS declined to 10 cents from 30 cents.
Despite the overall revenue declines, the vendor reported that revenues rose sequentially from $143 million in the first quarter of 2015 with increases in Broadband Access and Optical. Broadband Access rose to $101 million, while Optical was $16.4 million, up sequentially from $100.4 million and $13 million in the first quarter.
From a regional perspective, its U.S. business was the leader with a total of $104.3 million. International sales were $55.7 million for the quarter.
Tom Stanton, CEO of Adtran said in the earnings release that the sequential revenue increase was the result of service providers ordering broadband and optical products for their Connect America Fund (CAF) projects in the U.S. market.
"During the quarter, we saw an increase in broadband infrastructure activity in our domestic markets as carriers seek to position themselves competitively and utilize CAF funding to accelerate their deployment plans," Stanton said.
Shares of Adtran were trading at $16.90, down 38 cents in Wednesday morning trading on the Nasdaq stock exchange.
- see the earnings release
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