Adtran Q3 Results Top Estimates

(RTTNews) - Networking and communications equipment provider Adtran, Inc. (ADTN) reported Tuesday a decline in profit for the third quarter, reflecting a decline in sales. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also announced a cash dividend for the third quarter.

"Revenue came in as we anticipated in our press release of October 2, 2014 with a sequential decrease in our European business and a soft enterprise spending environment. Our domestic carrier business saw a sequential revenue increase," CEO Tom Stanton said in a statement.

The Huntsville, Alabama-based company reported net income of $11.33 million or $0.21 per share for the third quarter, down from $16.21 million or $0.28 per share in the year-ago quarter.

Excluding items, adjusted earnings for the quarter dropped to $0.25 per share from the prior-year quarter's $0.32 per share.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Total sales for the quarter decreased to $162.89 million from $177.40 million in the same quarter last year, but topped six Wall Street analysts' consensus estimate of $162.75 million by a whisker.

Operating income for the fourth quarter declined to $12.50 million from $17.21 million in the prior-year quarter, and gross profit was $78.26 million, down from $82.55 million in the year-ago quarter.

Selling, general and administrative expenses edged down to $32.44 million from $32.79 million in the same quarter last year. Research and development expenses totaled $33.32 million, up from $32.54 million in the year-ago quarter.

Further, the company said that its board declared a cash dividend for the third quarter of $0.09 per share, payable on November 13 to holders on record at the close of business on October 30.

"We believe our company is well positioned to take advantage of a re-acceleration of carrier spending in both Europe and the US we expect to begin in 2015," Stanton added.

ADTN closed Tuesday's regular trading session at $18.88, up $0.40 or 2.16% on a volume of 0.53 million shares.