Welcome!

News Feed Item

ADTRAN, Inc. Reports Results for the Fourth Quarter 2013 and Declares Quarterly Cash Dividend

ADTRAN, Inc. (NASDAQ:ADTN) reported results for the fourth quarter 2013. For the quarter, sales were $159,094,000 compared to $139,756,000 for the fourth quarter of 2012. Operating income was $10,639,000 compared to $2,874,000 for the fourth quarter of 2012. Net Income was $11,840,000 compared to $3,961,000 for the fourth quarter of 2012. Earnings per share, assuming dilution, were $0.20 compared to $0.06 for the fourth quarter of 2012. Non-GAAP earnings per share were $0.25 compared to $0.11 for the fourth quarter of 2012. The reconciliation between GAAP earnings per share, diluted, and non-GAAP earnings per share, diluted, is in the table provided.

ADTRAN Chief Executive Officer Tom Stanton stated, “We had a solid quarter with revenue coming in at 14% over the same period last year. Growth was driven by our core product areas, Broadband Access, Internetworking and Optical, which were up 25%. Strong performances in EMEA and Latin America helped drive our international revenue up 78%. Our strategy towards geographic diversification continued to pay benefits during the quarter and we believe we are well positioned for the future as our customers leverage technology advancements to improve their competitive position.”

The Company also announced that its Board of Directors declared a cash dividend for the fourth quarter of 2013. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on February 6, 2014. The ex-dividend date is February 4, 2014 and the payment date is February 20, 2014.

The Company confirmed that its fourth quarter conference call will be held Wednesday, January 22, 2014 at 9:30 a.m. Central Time. This conference call will be web cast live through StreetEvents.com. To listen, simply visit the Investor Relations site at www.adtran.com or www.streetevents.com approximately 10 minutes prior to the start of the call and click on the conference call link provided.

An online replay of the conference call will be available for seven days at www.streetevents.com. In addition, an online replay of the conference call, as well as the text of the Company’s earnings release, will be available on the Investor Relations site at www.adtran.com for at least 12 months following the call.

ADTRAN, Inc. is a leading global provider of networking and communications equipment. ADTRAN’s products enable voice, data, video and Internet communications across a variety of network infrastructures. ADTRAN solutions are currently in use by service providers, private enterprises, government organizations, and millions of individual users worldwide. For more information, please visit www.adtran.com.

For more information, contact the company at 800 9ADTRAN (800 923-8726) or via email at [email protected]. On the Web, visit www.adtran.com.

This press release contains forward-looking statements which reflect management’s best judgment based on factors currently known. However, these statements involve risks and uncertainties, including the successful development and market acceptance of new products, the degree of competition in the market for such products, the product and channel mix, component costs, manufacturing efficiencies, and other risks detailed in our annual report on Form 10-K for the year ended December 31, 2012 and on Form 10-Q for the quarter ended September 30, 2013. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.

 
 
 

Condensed Consolidated Balance Sheet
(Unaudited)
(In thousands)

 
 
  December 31,

2013

  December 31,
2012
Assets
Cash and cash equivalents $ 58,298 $ 68,457
Short-term investments 105,760 160,481
Accounts receivable, net 85,814 81,194
Other receivables 18,249 16,253
Inventory 90,111 102,583
Prepaid expenses 4,325 4,148
Deferred tax assets, net   17,083   13,055
Total Current Assets 379,640 446,171
 
Property, plant and equipment, net 76,739 80,246
Deferred tax assets, net 9,622 10,261
Goodwill 3,492 3,492
Other assets 11,180 13,482
Long-term investments   309,225   332,729
 
Total Assets $ 789,898 $ 886,381
 
Liabilities and Stockholders' Equity
Accounts payable $ 48,282 $ 42,173
Unearned revenue 22,205 38,051
Accrued expenses 12,776 10,309
Accrued wages and benefits 14,040 15,022
Income tax payable, net   5,002   1,211
Total Current Liabilities 102,305 106,766
 
Non-current unearned revenue 14,643 23,803
Other non-current liabilities 22,144 17,406
Bonds payable   46,200   46,000
Total Liabilities 185,292 193,975
 
Stockholders' Equity   604,606   692,406
 
Total Liabilities and Stockholders' Equity $ 789,898 $ 886,381

 
 
 

Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)

 
 
    Three Months Ended   Twelve Months Ended
December 31, December 31,
2013   2012 2013   2012
 
Sales $ 159,094 $ 139,756 $ 641,744 $ 620,614
Cost of sales   82,230     72,373     332,858     303,971  
 
Gross Profit 76,864 67,383 308,886 316,643
 
Selling, general and administrative expenses 33,284 31,393 129,366 134,523
Research and development expenses   32,941     33,116     131,055     125,951  
 
Operating Income 10,639 2,874 48,465 56,169
 
Interest and dividend income 1,991 2,006 7,012 7,657
Interest expense (588 ) (591 ) (2,325 ) (2,347 )
Net realized investment gain 1,665 2,197 8,614 9,550
Other income (expense), net 610 (82 ) (911 ) 183
Gain on bargain purchase of a business   -     -     -     1,753  
 
Income before provision for income taxes 14,317 6,404 60,855 72,965
 
Provision for income taxes   (2,477 )   (2,443 )   (15,061 )   (25,702 )
 
Net Income $ 11,840   $ 3,961   $ 45,794   $ 47,263  
 
Weighted average shares outstanding - basic 57,178 62,542 59,001 63,259
Weighted average shares outstanding - diluted (1) 57,777 62,690 59,424 63,774
 
Earnings per common share - basic $ 0.21 $ 0.06 $ 0.78 $ 0.75
Earnings per common share - diluted (1) $ 0.20 $ 0.06 $ 0.77 $ 0.74
 
(1) Assumes exercise of dilutive stock options calculated under the treasury stock method.

 
 
 

Consolidated Statements of Comprehensive Income
(Unaudited)
(In thousands)

 
 
  Three Months Ended   Twelve Months Ended
December 31, December 31,
2013   2012 2013   2012
 
Net Income $ 11,840   $ 3,961   $ 45,794   $ 47,263  
 
Other Comprehensive Income (Loss), net of tax:
 
Unrealized gains (losses) on available-for-sale securities 1,409 (2,071 ) 629 (52 )
Defined benefit plan adjustments 1,061 (1,952 ) 1,061 (1,952 )
Foreign currency translation   (707 )   (21 )   (2,205 )   170  
 
Other Comprehensive Income (Loss), net of tax   1,763     (4,044 )   (515 )   (1,834 )
 
Comprehensive Income (Loss), net of tax $ 13,603   $ (83 ) $ 45,279   $ 45,429  

 
 
 

Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

 
 
  Twelve Months Ended
December 31,
2013   2012
Cash flows from operating activities:
Net income $ 45,794 $ 47,263
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 14,628 14,079
Amortization of net premium on available-for-sale investments 5,956 8,257
Net realized gain on long-term investments (8,614 ) (9,550 )
Net (gain) loss on disposal of property, plant and equipment 3 (214 )
Gain on bargain purchase of a business - (1,753 )
Stock-based compensation expense 9,073 9,264
Deferred income taxes (4,058 ) (3,785 )
Tax benefit from stock option exercises 169 1,905
Excess tax benefits from stock-based compensation arrangements (158 ) (1,456 )
Change in operating assets and liabilities:
Accounts receivable, net (4,022 ) (4,365 )
Other receivables (1,549 ) 2,977
Inventory 11,479 7,163
Prepaid expenses and other assets (11 ) (1,045 )
Accounts payable 5,543 7,265
Accrued expenses and other liabilities (17,879 ) 11,583
Income tax payable, net   3,747     (1,960 )
Net cash provided by operating activities 60,101 85,628
 
Cash flows from investing activities:
Purchases of property, plant and equipment (8,510 ) (12,075 )
Proceeds from disposals of property, plant and equipment - 266
Proceeds from sales and maturities of available-for-sale investments 343,567 282,039
Purchases of available-for-sale investments (261,625 ) (282,740 )
Acquisition of business   -     7,496  
Net cash provided by (used in) investing activities 73,432 (5,014 )
 
Cash flows from financing activities:
Proceeds from stock option exercises 3,629 6,049
Purchases of treasury stock (124,267 ) (39,362 )
Dividend payments (21,412 ) (22,813 )
Payments on long-term debt - (500 )
Excess tax benefits from stock-based compensation arrangements   158     1,456  
Net cash used in financing activities (141,892 ) (55,170 )
 
Net increase (decrease) in cash and cash equivalents (8,359 ) 25,444
Effect of exchange rate changes (1,800 ) 34
Cash and cash equivalents, beginning of period   68,457     42,979  
 
Cash and cash equivalents, end of period $ 58,298   $ 68,457  

 
 
 

Supplemental Information
Acquisition Related Expenses, Amortizations and Adjustments
(Unaudited)
(In thousands)

 

On August 4, 2011, we closed on the acquisition of Bluesocket, Inc. and on May 4, 2012, we closed on the acquisition of the Nokia Siemens Networks Broadband Access business (NSN BBA). Acquisition related expenses, amortizations and adjustments for the three and twelve months ended December 31, 2013 and 2012 for both transactions are as follows:

 
  Three Months Ended   Twelve Months Ended
December 31, December 31,
2013   2012 2013   2012
Bluesocket, Inc. acquisition
Amortization of acquired intangible assets and other purchase accounting adjustments $ 279   $ 296   $ 1,142   $ 1,463  
 
NSN BBA acquisition
Amortization of acquired intangible assets 301 290 1,174 762
Amortization of other purchase accounting adjustments 391 587 1,378 2,305
Acquisition related professional fees, travel and other expenses   16     323     345     4,860  
 
Subtotal   708     1,200     2,897     7,927  
 
Total acquisition related expenses, amortizations and adjustments 987 1,496 4,039 9,390
Provision for income taxes   (328 )   (488 )   (1,343 )   (3,148 )
 
Total acquisition related expenses, amortizations and adjustments, net of tax $ 659   $ 1,008   $ 2,696   $ 6,242  
 
 

The acquisition related expenses, amortizations and adjustments above were recorded in the following Consolidated Statements of Income categories for the three and twelve months ended December 31, 2013 and 2012:

 
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2012 2013 2012
 
Revenue (adjustments to deferred revenue recognized in the period) $ 211 $ 377 $ 929 $ 1,528
Cost of goods sold   102     154     196     1,086  
 
Subtotal   313     531     1,125     2,614  
 
Selling, general and administrative expenses 24 330 399 4,510
Research and development expenses   650     635     2,515     2,266  
 
Subtotal   674     965     2,914     6,776  
 
Total acquisition related expenses, amortizations and adjustments 987 1,496 4,039 9,390
Provision for income taxes   (328 )   (488 )   (1,343 )   (3,148 )
 
Total acquisition related expenses, amortizations and adjustments, net of tax $ 659   $ 1,008   $ 2,696   $ 6,242  

 
 
 

Supplemental Information
Stock-based Compensation Expense
(Unaudited)
(In thousands)

 
 
  Three Months Ended   Twelve Months Ended
December 31, December 31,
2013   2012 2013   2012
 
Stock-based compensation expense included in cost of sales $ 131   $ 118   $ 465   $ 422  
 
Selling, general and administrative expense 1,314 1,146 4,443 4,351
Research and development expense   1,112     1,217     4,165     4,491  
 
Stock-based compensation expense included in operating expenses   2,426     2,363     8,608     8,842  
 
Total stock-based compensation expense 2,557 2,481 9,073 9,264
Tax benefit for expense associated with non-qualified options   (374 )   (318 )   (1,298 )   (1,234 )
 
Total stock-based compensation expense, net of tax $ 2,183   $ 2,163   $ 7,775   $ 8,030  

 
 
 

Reconciliation of GAAP net income per share, diluted, to
Non-GAAP net income per share, diluted
(Unaudited)

 
 
  Three Months Ended   Twelve Months Ended
December 31, December 31,
2013   2012 2013   2012
 
GAAP earnings per common share – diluted $ 0.20 $ 0.06 $ 0.77 $ 0.74
 
Acquisition related expenses, amortizations and adjustments 0.01 0.02 0.05 0.10
Stock-based compensation expense 0.04 0.03 0.13 0.13
Gain on bargain purchase of business

-

 

-

-

  (0.03 )
 
Non-GAAP earnings per common share – diluted $ 0.25 $ 0.11 $ 0.95 $ 0.94  
 
 
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
SYS-CON Events announced today that Isomorphic Software will exhibit at SYS-CON's [email protected] at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, high-productivity enterprise web applications for any device. SmartClient couples the industry’s broadest, deepest UI component set with a java server framework to deliver an end-...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.