Slower service provider capex spending cycles are not exactly the best news for wireline vendors such as ADTRAN, and its second-quarter profit reflects that trend. The company's second-quarter profit of $18.8 million slid by 16 percent compared to the company's $22.4 million profit for the same period in 2008.
Despite lower profits and revenue, ADTRAN performed slightly better than analyst expectations. A Thomson Reuters poll of financial analysts predicted ADTRAN's profit would be 28 cents per share and revenue would be $117.9 million for the quarter; instead, it earned 30 cents per share, assuming dilution, and reported revenue of $121.5 million, off 7 percent from the $131.2 million it revenue it reported for the second quarter of 2008.
ADTRAN's CEO Tom Stanton said that the company's broadband access, optical access and Internet networking divisions, "grew both sequentially and year over year, and combined achieved a record revenue level."
Adtran Q1 numbers also beat estimates