Welcome!

News Feed Item

ADTRAN, Inc. Reports Results for the First Quarter 2014 and Declares Quarterly Cash Dividend

ADTRAN, Inc. (NASDAQ:ADTN) reported results for the first quarter 2014. For the quarter, sales were $147,004,000 compared to $143,013,000 for the first quarter of 2013. Operating income was $11,298,000 compared to $6,563,000 for the first quarter of 2013. Net income was $9,607,000 compared to $7,890,000 for the first quarter of 2013. Earnings per share, assuming dilution, were $0.17 compared to $0.13 for the first quarter of 2013. Non-GAAP earnings per share were $0.21 compared to $0.17 for the first quarter of 2013. 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, “Revenue for the quarter came in at $147 million, up 3% over last year. Lower sales in the US were offset by international sales which grew 56% over the same period last year. Operating income increased 72% buoyed by higher gross margins in both our US and international businesses.”

The Company also announced that its Board of Directors declared a cash dividend for the first quarter of 2014. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on May 1, 2014. The ex-dividend date is April 29, 2014 and the payment date is May 15, 2014.

The Company confirmed that its first quarter conference call will be held Wednesday, April 16, 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, 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)

 
March 31,

2014

December 31,
2013
Assets
Cash and cash equivalents $ 52,815 $ 58,298
Short-term investments 89,160 105,760
Accounts receivable, net 100,524 85,814
Other receivables 28,967 18,249
Inventory 87,396 90,111
Prepaid expenses 5,005 4,325
Deferred tax assets, net   15,181   17,083
Total Current Assets 379,048 379,640
 
Property, plant and equipment, net 75,885 76,739
Deferred tax assets, net 11,491 9,622
Goodwill 3,492 3,492
Other assets 11,933 11,180
Long-term investments   309,452   309,225
 
Total Assets $ 791,301 $ 789,898
 
Liabilities and Stockholders' Equity
Accounts payable $ 59,097 $ 48,282
Unearned revenue 27,533 22,205
Accrued expenses 10,683 12,776
Accrued wages and benefits 17,448 14,040
Income tax payable, net   5,272   5,002
Total Current Liabilities 120,033 102,305
 
Non-current unearned revenue 15,116 14,643
Other non-current liabilities 23,476 22,144
Bonds payable   30,000   46,200
Total Liabilities 188,625 185,292
 
Stockholders' Equity   602,676   604,606
 
Total Liabilities and Stockholders' Equity $ 791,301 $ 789,898
     

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data)

 
Three Months Ended
March 31,
  2014         2013  
 
Sales $ 147,004 $ 143,013
Cost of sales   69,214     73,336  
 
Gross Profit 77,790 69,677
 
Selling, general and administrative expenses 33,939 30,603
Research and development expenses   32,553     32,511  
 
Operating Income 11,298 6,563
 
Interest and dividend income 1,294 1,768
Interest expense (227 ) (581 )
Net realized investment gain 2,192 3,645
Other income (expense), net   122     (1,672 )
 
Income before provision for income taxes 14,679 9,723
 
Provision for income taxes   (5,072 )   (1,833 )
 
Net Income $ 9,607   $ 7,890  
 
Weighted average shares outstanding - basic 56,751 61,847
Weighted average shares outstanding - diluted (1) 57,368 62,030
 
Earnings per common share - basic $ 0.17 $ 0.13
Earnings per common share - diluted (1) $ 0.17 $ 0.13
 
(1) Assumes exercise of dilutive stock options calculated under the treasury stock method.
   

 

Consolidated Statements of Comprehensive Income

(Unaudited)

(In thousands)

 
Three Months Ended
March 31,
  2014         2013  
 
Net Income $ 9,607   $ 7,890  
 
Other Comprehensive Loss, net of tax:
 
Unrealized losses on available-for-sale securities (921 ) (1,644 )
Foreign currency translation   252     323  
 
Other Comprehensive Loss, net of tax   (669 )   (1,321 )
 
Comprehensive Income, net of tax $ 8,938   $ 6,569  
   

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 
Three Months Ended
March 31,
  2014         2013  
Cash flows from operating activities:
Net income $ 9,607 $ 7,890
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 3,580 3,663
Amortization of net premium on available-for-sale investments 1,135 1,754
Net realized gain on long-term investments (2,192 ) (3,645 )
Net (gain) loss on disposal of property, plant and equipment (3 ) 17
Stock-based compensation expense 2,057 2,232
Deferred income taxes 627 715
Tax benefit from stock option exercises 57 -
Excess tax benefits from stock-based compensation arrangements (55 ) -
Change in operating assets and liabilities:
Accounts receivable, net (14,668 ) (1,306 )
Other receivables (10,710 ) (224 )
Inventory 2,739 6,540
Prepaid expenses and other assets (2,024 ) (217 )
Accounts payable 11,043 7,170
Accrued expenses and other liabilities 8,431 1,188
Income tax payable, net   275     379  
Net cash provided by operating activities   9,899     26,156  
 
Cash flows from investing activities:
Purchases of property, plant and equipment (2,042 ) (643 )
Proceeds from disposals of property, plant and equipment 1 -
Proceeds from sales and maturities of available-for-sale investments 85,072 118,133
Purchases of available-for-sale investments   (69,182 )   (125,411 )
Net cash provided by (used in) investing activities   13,849     (7,921 )
 
Cash flows from financing activities:
Proceeds from stock option exercises 1,541 55
Purchases of treasury stock (9,427 ) (22,546 )
Dividend payments (5,102 ) (5,586 )
Payments on long-term debt (16,500 ) -
Excess tax benefits from stock-based compensation arrangements   55     -  
Net cash used in financing activities   (29,433 )   (28,077 )
 
Net decrease in cash and cash equivalents (5,685 ) (9,842 )
Effect of exchange rate changes 202 25
Cash and cash equivalents, beginning of period   58,298     68,457  
 
Cash and cash equivalents, end of period $ 52,815   $ 58,640  
 
Supplemental disclosure of non-cash investing activities
Purchases of property, plant and equipment included in accounts payable $ 85 $ 92
 

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 months ended March 31, 2014 and 2013 for both transactions are as follows:

 
Three Months Ended
March 31,
  2014       2013  
Bluesocket, Inc. acquisition
Amortization of acquired intangible assets and other purchase accounting adjustments $ 246   $ 293  
 
NSN BBA acquisition
Amortization of acquired intangible assets 302 294
Amortization of other purchase accounting adjustments 361 410
Acquisition related professional fees, travel and other expenses   48     154  
 
Subtotal   711     858  
 
Total acquisition related expenses, amortizations and adjustments 957 1,151
Provision for income taxes   (316 )   (380 )
 
Total acquisition related expenses, amortizations and adjustments, net of tax $ 641   $ 771  
 

 

The acquisition related expenses, amortizations and adjustments above were recorded in the following Consolidated Statements of Income categories for the three months ended March 31, 2014 and 2013:

 

 
Three Months Ended
March 31,
  2014     2013  
 
Revenue (adjustments to deferred revenue recognized in the period) $ 243 $ 262
Cost of goods sold   34     87  
 
Subtotal   277     349  
 
Selling, general and administrative expenses 55 161
Research and development expenses   625     641  
 
Subtotal   680     802  
 
Total acquisition related expenses, amortizations and adjustments 957 1,151
Provision for income taxes   (316 )   (380 )
 
Total acquisition related expenses, amortizations and adjustments, net of tax $ 641   $ 771  
   

Supplemental Information

Stock-based Compensation Expense

(Unaudited)

(In thousands)

 
Three Months Ended
March 31,
  2014       2013  
 
Stock-based compensation expense included in cost of sales $ 116   $ 106  
 
Selling, general and administrative expense 1,026 1,063
Research and development expense   915     1,063  
 
Stock-based compensation expense included in operating expenses   1,941     2,126  
 
Total stock-based compensation expense 2,057 2,232
Tax benefit for expense associated with non-qualified options   (284 )   (307 )
 
Total stock-based compensation expense, net of tax $ 1,773   $ 1,925  
   

Reconciliation of GAAP net income per share, diluted, to

Non-GAAP net income per share, diluted

(Unaudited)

 
Three Months Ended
March 31,
  2014     2013
 
GAAP earnings per common share – diluted $ 0.17 $ 0.13
 
Acquisition related expenses, amortizations and adjustments 0.01 0.01
Stock-based compensation expense   0.03   0.03
 
Non-GAAP earnings per common share – diluted $ 0.21 $ 0.17

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
DevOps is not just last year’s buzzword. Companies with DevOps practices are 2.5x more likely to exceed profitability, market share, and productivity goals. But how do you enable high performance? What can you do right now to start? Find out from DevOps experts including Gene Kim, co-author of "The Phoenix Project," and the Dynatrace Center of Excellence.
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, 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. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze 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. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, 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. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Recognizing the need to identify and validate information security professionals’ competency in securing cloud services, the two leading membership organizations focused on cloud and information security, the Cloud Security Alliance (CSA) and (ISC)^2, joined together to develop an international cloud security credential that reflects the most current and comprehensive best practices for securing and optimizing cloud computing environments.
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of 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, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that VAI, a leading ERP software provider, 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. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...