ADTRAN's (Nasdaq: ADTN) ongoing earnings roll continued into Q2 2011 as the Huntsville, Ala.-based telecom vendor reported a 33 percent increase in net income to $36.9 million.
Likewise, company sales were up 23 percent to $184.2 million for the quarter, compared to $150.3 million for Q2 2010 and operating income increased 33 percent to an all time record level of $51.3 million for the quarter compared to $38.6 million in Q2 2010.
Wall Street liked these results and rewarded ADTRAN, which supplies equipment to Qwest--now CenturyLink (NYSE: CTL)--AT&T (NYSE: T) and Verizon (NYSE: VZ), by driving up its shares 4 percent in premarket trading today.
Once again, the stars of ADTRAN's Q2 2011 revenue mix were its broadband access, optical access and internetworking units.
Driven by ongoing sales of its Total Access 5000 and Fiber to the Node (FTTN) platforms, ADTRAN's broadband access unit grew 71 percent over Q2 2010. Similarly, optical access grew 36 percent and internetworking grew 18 percent during the quarter.
However, ADTRAN's good times could come to a halt as it forecast that Q3 2011 revenue will flat to up mid-single digits.
And while ADTRAN's ongoing success in the Tier 1 telcos continues to impress, the most obvious concern for the vendor is how they will fit into CenturyLink, which has Calix (NYSE: CALX) as one of its major last mile vendors. Before Qwest was bought by CenturyLink in April, their main vendor was ADTRAN for their FTTN ADSL2+ and VDSL2 services.
For more:
- see the release
- Reuters has this article
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