Adtran's third quarter 2015 revenue dropped to $158 million compared to $160 million in the second quarter of 2015. However, the company's net income was up to $7 million compared to $2.5 million in the second quarter.
Adtran CEO Tom Stanton said that while revenue was down, overall U.S. revenue for the quarter was up 20 percent compared to a year ago and he attributed that increase to broadband sales. He also noted that operating income was slightly better than expected thanks to improved gross margin and lower operating expenses. "Looking ahead we continue to see signs that momentum is building for 2016 as CAF and competitive pressure refocus carriers' investment in broadband access infrastructure," Stanton said in a release.
Interestingly, the company also said that its board of directors declared a cash dividend of $0.09 per common share to be paid to shareholders on Oct. 29.
In August, Stanton talked with media about the Connect America Fund and the new life it's given to rural broadband deployments.
He also said that Adtran is well positioned for operators' migration to software-defined networking because the company has been migrating from being a hardware shop to a software company over the past few years. "I'm in a position to embrace virtualization better than my biggest competitors. We have embraced that in a way … we are pushing it. I've got less to lose and more to gain," he said.
For more:
- see this release
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