Adtran reported that its third-quarter 2014 earnings declined to $162.9 million year-over-year from $177.4 million due to a decrease in its European business and slower enterprise sales.
Company net profit also fell to $11.3 million from $16.2 million, with diluted earnings per share at 21 cents from 28 cents.
News of this decline should be of no surprise. Earlier this month, the company said in a third-quarter 2014 earnings preview that revenue should be in the $162 million to $163 million range, but results would be impacted by slowness in its European and enterprise service lines.
"Revenue came in as we anticipated in our press release of October 2, 2014 with a sequential decrease in our European business and a soft enterprise spending environment," said Tom Stanton, CEO of Adtran, in the earnings release. "Our domestic carrier business saw a sequential revenue increase."
Stanton added: "We believe our company is well positioned to take advantage of a re-acceleration of carrier spending in both Europe and the U.S. we expect to begin in 2015."
From a segment perspective, third-quarter carrier networks revenues were $133 million, while enterprise networks revenues were $29.9 million.
As seen in earlier quarters, carrier networks revenues were dominated by broadband access with $96 million in revenues, down sequentially from $108.3 million in the second quarter of 2014. Meanwhile, optical and Internetworking declined sequentially to $13.6 million and $38.6 million from $15.8 million and $41 million, respectively.
In terms of regions, the United States continued to dominate with $98.6 million in revenues, but international revenues were only $64.2 million.
Shares of Adtran were listed at $18.65, down 23 cents in Wednesday morning trading on the Nasdaq stock exchange.
- see the earnings release
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