Adtran Second Quarter Results Top Estimates

(RTTNews) - Networking and communications equipment provider Adtran, Inc. (ADTN) reported late Tuesday a profit for the second quarter that more than halved from last year, hurt by higher expenses and a decline in sales amid a tightening spending environment. Both adjusted earnings per share and quarterly revenues came in above analysts' expectations.

"Continuing improvement in our Internetworking and Broadband Access product areas led revenues which exceeded estimates for the quarter. During the quarter we benefited from market share gains, the geographic expansion we began last year and an improved spending environment," CEO Tom Stanton said in a statement.

Huntsville, Alabama-based Adtran reported net income of $9.86 million or $0.17 per share for the second quarter, sharply down from $21.07 million or $0.33 per share in the prior-year quarter.

Excluding items, adjusted earnings were $0.21 per share, compared to last year's $0.38 per share. On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Total sales for the quarter dropped to $162.23 million from $184.00 million in the same quarter last year, but topped eleven Wall Street analysts' consensus estimate of $154.16 million.

Operating income for the quarter plunged to $14.05 million from $26.84 million in the prior-year quarter, and gross profit was $79.80 million, down from $95.20 million last year.

Adtran also said its board declared a cash dividend of $0.09 per share for the second quarter, payable on August 8 to holders on record at the close of business on July 25.

ADTN closed Tuesday's regular trading session at $25.21, up $0.19 or 0.76% on a volume of 1.38 million shares. However, the stock lost $0.25 or 0.99% in after-hours trading.