ADTRAN Reports Tighter Carrier Spending in Q2

ADTRAN reported Q2 sales of $183,998,000 compared to $184,227,000 for the second quarter of 2011. Net income was $21,070,000 for the quarter compared to $36,943,000 for the second quarter of 2011. Earnings per share, assuming dilution, were $0.33 for the quarter compared to $0.56 for the second quarter of 2011. Non-GAAP earnings per share for the quarter were $0.38 compared to $0.59 for the second quarter of 2011.

ADTRAN Chief Executive Officer Tom Stanton stated, "Our results for the second quarter reflect a tightening spending environment. Total quarterly revenues grew 37% sequentially, with organic revenues (excluding the recently acquired NSN BBA business) up 20%, representing a flat year over year performance. Our Broadband Access category grew 38% (8% organic) over the same period last year. Our Internetworking category grew 6% over the same period last year. Total core products which include Broadband Access, Optical and Internetworking, grew 17% (flat organically) over the same period last year and now represent 84% of total revenues. Decreasing visibility leaves us cautious for the near term but we are confident that our strong customer alignment and increasing global footprint will deliver long term growth for the company."
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