Adtran revenues slip 3.5% to $139M, but expects 1 Gig cable, telco spending to rise

Adtran reported that fourth-quarter company sales were $139 million, down year-over-year from $143 million in the fourth quarter of 2014. But the company says it will see a rise in cable operator and telco spending on 1 Gbps and related broadband networks in upcoming quarters.

"We expect further improvement in the carrier environment as customers accelerate investments in upgrading their network infrastructure," said Tom Stanton, CEO of Adtran, in an earnings release.

Company net income and earnings per share also took a hit during the quarter.

Net income declined to $5.7 million from $9.3 million, while earnings per share were 12 cents compared to 17 cents for the fourth quarter of 2014. Still, Adtran's results beat Zacks Equity Research estimates of $138 million.

On the product side, Carrier Systems was the star with $103 million in revenues, but was down sequentially from $111 million in the third quarter. Likewise, Business Networking and Loop Access revenues were $31 million and $5.2 million, down from $39 million and $8 million, respectively, in the same period.

Adtran also saw sequential declines across various subcategories, including broadband access and Internetworking. Broadband access, which continues to be Adtran's best segment, declined sequentially to $85 million from $94 million in the third quarter. However, Broadband Access revenues rose slightly year-over-year from $82 million.

Optical networking saw a slight uptick with revenues of $13.9 million, up sequentially $13.7 million, while Internetworking dipped to $30.2 million.

From a regional perspective, the United States was the dominant region with $112 million in revenues, while international was $27 million.

Shares of Adtran were listed at $17.32, down 27 cents, or 1.53 percent in Wednesday morning trading on the Nasdaq stock exchange.

For more:
- see the earnings release
- hear the earnings webcast (reg req.)
- Zacks Equity Research has this article

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