Vendor Adtran reported year-over-year increases in both sales and net income, which the company attributed to strong demand for its FTTP and 100 megabit portfolios. As a result, the company's stock rose roughly 10 percent in the hours following the release of the company's second-quarter earnings, to around $19.74 per share.
"Adtran delivered solid revenue and earnings results for the quarter due to strength in our domestic market and gross margin improvement. Growth in the U.S. market was led by our FTTP and 100 megabit portfolios, along with continued growth in our CAF II and Ethernet solutions," Adtran CEO Tom Stanton said in a statement. "Our Services business also continued its strong growth with a 51 percent revenue increase year-over-year. Customers around the world are increasingly recognizing the benefits of deploying ultra-high speed broadband and are leveraging Adtran's unique domain leadership and expertise in planning, developing and deploying business and residential services."
The results essentially represent a follow-on to comments Stanton made in April on the release of the company's first quarter earnings. Adtran posted a small dip in its first quarter 2016 revenues, but noted that it is seeing potential revenue opportunities from service provider customers, creating a new future revenue foundation. Adtran expects "further improvement in the carrier environment as customers accelerate investments in upgrading their network infrastructure," Stanton said in April.
Specifically, Adtran posted sales in the second quarter of $162.7 million, up from the $160.1 million it posted in the second quarter of 2015. Adtran's net income clocked in at $10.2 million, up significantly from the $2.544 million the company notched in the second quarter of 2015.
The company's earnings per share, assuming dilution, were 21 cents in the period, up from 5 cents for the second quarter of 2015.
Likely as a result of the solid earnings, Adtran announced a cash dividend for the second quarter of 9 cents per common share, to be paid to holders on July 28.
During its first quarter, Adtran reported overall revenues dropped 0.4 percent year over year to $142.2 million, down from $142.8 million. However, the vendor's results surpassed financial analyst consensus estimates of $141 million.
Adtran sells equipment and services to a range of telecom players including cable and wireless operators, and has contributed to network access architecture including SDN and NFV, management and interoperability standardization and the development of standards including ITU-T VDSL2, G.fast, G-PON and others.
Indeed, company executives earlier this year confirmed Adtran is currently engaged in over 60 G.fast trials with multiple service providers.
- see this Adtran release
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