ADTRAN, Inc. (NASDAQ:ADTN) reported results for the third
quarter 2016. For the quarter, sales were $168,890,000 compared to
$158,078,000 for the third quarter of 2015. Net income was
$12,415,000 compared to $7,067,000 for the third quarter of 2015.
Earnings per share, assuming dilution, were $0.26 compared to $0.14
for the third quarter of 2015. Non-GAAP earnings per share were
$0.26 compared to $0.19 for the third quarter of 2015. 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, “Our revenue
performance for the quarter exceeded expectations with total
revenue increasing 7% over the same period last year. I am
particularly pleased to see our international business grow 42
percent over the previous quarter and 7 percent year-over-year,
driven by stronger broadband access sales in Europe. I am also
pleased with the continued growth in our services business which
increased 35 percent over the previous quarter and grew 63 percent
year-over-year as we execute on our leading market position in CAF
II and vectoring solutions and services. We continue to believe
that ADTRAN's ability to help service providers grow revenue,
reduce costs, accelerate buildout and transition to a
software-defined access network is proving to be a catalyst for
change within the industry."
The Company also announced that its Board of Directors declared
a cash dividend for the third quarter of 2016. The quarterly cash
dividend is $0.09 per common share to be paid to holders of record
at the close of business on November 3, 2016. The ex-dividend date
is November 1, 2016, and the payment date is November 17, 2016.
The Company confirmed that its third quarter conference call
will be held Wednesday, October 19, 2016, 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 info@adtran.com. 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, 2015. 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)
September 30,2016
December 31,2015
Assets Cash and cash equivalents $ 66,292 $ 84,550
Short-term investments 55,516 34,396 Accounts receivable, net
101,822 71,917 Other receivables 12,159 19,321 Income tax
receivable, net 540 - Inventory 96,034 91,533 Prepaid expenses and
other current assets 14,477 10,145 Deferred tax assets, net
17,963 18,924
Total Current Assets 364,803
330,786 Property, plant and equipment, net 78,078
73,233 Deferred tax assets, net 17,263 18,091 Goodwill 3,492 3,492
Other assets 13,548 9,276 Long-term investments 178,379
198,026
Total Assets $ 655,563
$ 632,904 Liabilities and Stockholders'
Equity Accounts payable $ 67,399 $ 48,668 Unearned revenue
15,744 16,615 Accrued expenses 16,010 12,108 Accrued wages and
benefits 16,468 12,857 Income tax payable, net -
2,395
Total Current Liabilities 115,621 92,643
Non-current unearned revenue 7,105 7,965 Other non-current
liabilities 26,740 24,236 Bonds payable 27,900 27,900
Total Liabilities 177,366 152,744
Stockholders' Equity 478,197
480,160 Total Liabilities and Stockholders'
Equity $ 655,563 $ 632,904
Consolidated Statements of
Income
(Unaudited)
(In thousands, except per share
data)
Three Months Ended Nine Months Ended
September 30, September 30, 2016
2015 2016 2015
Sales Products $ 136,277 $ 138,120 $ 398,709 $ 411,723
Services 32,613 19,958 75,086
49,328
Total Sales
168,890 158,078 473,795 461,051
Cost of Sales Products 70,988 75,969 202,905 231,739
Services 22,094 11,460 50,333
24,854
Total Cost of Sales
93,082 87,429 253,238 256,593
Gross Profit 75,808 70,649 220,557
204,458 Selling, general and administrative expenses
33,716 30,016 97,367 93,203 Research and development expenses
31,962 32,561 92,727
100,576
Operating Income 10,130
8,072 30,463 10,679 Interest and
dividend income 910 839 2,692 2,680 Interest expense (143 ) (151 )
(430 ) (448 ) Net realized investment gain 1,316 2,060 4,154 8,430
Other income (expense), net (246 ) 52 (378 ) (848 ) Gain on bargain
purchase of a business 3,550 -
3,550 -
Income before provision for
income taxes 15,517 10,872 40,051
20,493 Provision for income taxes (3,102 )
(3,805 ) (12,394 ) (7,565 )
Net
Income $ 12,415 $ 7,067
$ 27,657 $ 12,928
Weighted average shares outstanding - basic 48,470 49,862
48,839 51,682 Weighted average shares outstanding - diluted (1)
48,678 49,927 49,036 51,792 Earnings per common share -
basic $ 0.26 $ 0.14 $ 0.57 $ 0.25 Earnings per common share -
diluted (1) $ 0.26 $ 0.14 $ 0.56 $ 0.25 (1) Assumes exercise
of dilutive stock options calculated under the treasury stock
method.
Consolidated Statements of
Comprehensive Income
(Unaudited)
(In thousands)
Three Months Ended Nine Months Ended
September 30, September 30, 2016
2015 2016 2015 Net Income
$ 12,415 $ 7,067 $ 27,657 $ 12,928
Other Comprehensive Income (Loss), net of tax:
Unrealized gains (losses) on available-for-sale securities 258
(4,291 ) (162 ) (6,577 ) Defined benefit plan adjustments 36 71 103
211 Foreign currency translation 575 (1,351 )
1,202 (3,797 )
Other Comprehensive Income
(Loss), net of tax 869 (5,571
) 1,143 (10,163 )
Comprehensive Income, net of tax $
13,284 $ 1,496 $ 28,800
$ 2,765
Consolidated Statements of Cash
Flows
(Unaudited)
(In thousands)
Nine Months Ended September 30,
2016 2015 Cash flows from operating
activities: Net income $ 27,657 $ 12,928 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 10,260 10,765 Amortization of net
premium on available-for-sale investments 489 2,085 Net realized
gain on long-term investments (4,154 ) (8,430 ) Net loss on
disposal of property, plant and equipment 21 189 Gain on bargain
purchase of a business (3,550 ) - Stock-based compensation expense
4,601 4,788 Deferred income taxes (447 ) (2,332 ) Tax impact from
stock option exercises (16 ) (40 ) Excess tax benefits from
stock-based compensation arrangements - (3 ) Change in operating
assets and liabilities: Accounts receivable, net (29,370 ) 843
Other receivables 7,475 10,532 Inventory (683 ) (14,945 ) Prepaid
expenses and other assets (5,180 ) (1,665 ) Accounts payable 16,363
13,687 Accrued expenses and other liabilities 7,307 (3,996 ) Income
tax payable/receivable, net (2,941 ) (1,137 )
Net
cash provided by operating activities 27,832
23,269 Cash flows from
investing activities: Purchases of property, plant and
equipment (12,684 ) (7,843 ) Proceeds from disposals of property,
plant and equipment - 122 Proceeds from sales and maturities of
available-for-sale investments 141,103 189,728 Purchases of
available-for-sale investments (139,181 ) (113,227 ) Acquisition of
business (943 ) -
Net cash provided by
(used in) investing activities (11,705 )
68,780 Cash flows from financing
activities: Proceeds from stock option exercises 1,076 907
Purchases of treasury stock (22,917 ) (65,808 ) Dividend payments
(13,230 ) (13,989 ) Excess tax benefits from stock-based
compensation arrangements - 3
Net
cash used in financing activities (35,071
) (78,887 ) Net increase
(decrease) in cash and cash equivalents (18,944 ) 13,162 Effect of
exchange rate changes 686 (2,914 )
Cash and cash equivalents,
beginning of period 84,550
73,439 Cash and cash equivalents, end of
period $ 66,292 $ 83,687
Supplemental disclosure of non-cash investing
activities Purchases of property, plant and equipment included in
accounts payable $ 1,174 $ 1,303
Supplemental Information
Restructuring Expenses
(Unaudited)
(In thousands)
Restructuring expenses were recorded in
the following Consolidated Statements of Income categories for the
three and nine months ended September 30, 2016 and 2015:
Three Months Ended Nine Months Ended
September 30, September 30, 2016
2015 2016 2015
Restructuring expense included in cost of sales $
1,307 $ 9 $ 1,307
$ 107 Selling, general and
administrative expense 637 194 637 838 Research and development
expense - 712 -
2,095
Restructuring expense included in operating
expenses 637 906
637 2,933 Total
restructuring expense 1,944 915 1,944
3,040 Provision for income taxes (603 ) (357 )
(603 ) (1,186 )
Total restructuring
expense, net of tax $ 1,341 $
558 $ 1,341 $
1,854
Supplemental Information
Acquisition Related Expenses,
Amortizations and Adjustments
(Unaudited)
(In thousands)
On August 4, 2011, we closed on the
acquisition of Bluesocket, Inc., on May 4, 2012, we closed on the
acquisition of the Nokia Siemens Networks Broadband Access business
(NSN BBA), and on September 13, 2016, we closed on the acquisition
of CommScope’s active fiber business (CommScope). Acquisition
related expenses, amortizations and adjustments for the three and
nine months ended September 30, 2016 and 2015 for all three
transactions are as follows:
Three Months Ended Nine Months Ended
September 30, September 30, 2016
2015 2016 2015 Bluesocket, Inc.
acquisition Amortization of acquired intangible assets $ 158
$ 191 $ 504 $ 643 NSN BBA acquisition
Amortization of acquired intangible assets 225 231 680 701
Amortization of other purchase accounting adjustments 114 101 194
395 Acquisition related professional fees, travel and other
expenses - 20 - 61
Subtotal NSN BBA acquisition 339
352 874
1,157 CommScope acquisition Amortization of
acquired intangible assets 112 - 112 - Amortization of other
purchase accounting adjustments 84 - 84 - Acquisition related
professional fees, travel and other expenses 45
- 45 -
Subtotal
CommScope acquisition 241 -
241 -
Total acquisition related expenses, amortizations and
adjustments 738 543 1,619 1,800
Provision for income taxes (261 ) (183 ) (562
) (609 )
Total acquisition related expenses,
amortizations and adjustments, net of tax $ 477
$ 360 $ 1,057
$ 1,191
The acquisition related expenses,
amortizations and adjustments above were recorded in the following
Consolidated Statements of Income categories for the three and nine
months ended September 30, 2016 and 2015:
Three Months Ended Nine Months Ended
September 30, September 30, 2016 2015
2016 2015 Revenue (adjustments to deferred
revenue recognized in the period) $ - $ 65 $ - $ 196 Cost of goods
sold 169 7 189 52
Subtotal 169 72
189 248
Selling, general and administrative expenses 54 23 61 74 Research
and development expenses 515 448
1,369 1,478
Subtotal 569
471 1,430
1,552 Total acquisition related expenses,
amortizations and adjustments 738 543
1,619 1,800 Provision for income taxes (261 )
(183 ) (562 ) (609 )
Total
acquisition related expenses, amortizations and adjustments, net of
tax $ 477 $ 360
$ 1,057 $ 1,191
Supplemental Information
Stock-based Compensation
Expense
(Unaudited)
(In thousands)
Three Months Ended Nine Months Ended
September 30, September 30, 2016
2015 2016 2015
Stock-based compensation expense included in cost of sales
$ 88 $ 59 $
282 $ 202 Selling,
general and administrative expense 765 812 2,322 2,226 Research and
development expense 639 803
1,997 2,360
Stock-based compensation
expense included in operating expenses 1,404
1,615 4,319
4,586 Total stock-based compensation
expense 1,492 1,674 4,601 4,788 Tax
benefit for expense associated with non-qualified options
(218 ) (218 ) (643 ) (620 )
Total
stock-based compensation expense, net of tax $
1,274 $ 1,456 $
3,958 $ 4,168
Reconciliation of GAAP net income per
share, diluted, to
Non-GAAP net income per share,
diluted
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30, 2016
2015 2016 2015 GAAP
earnings per common share – diluted $ 0.26
$ 0.14 $ 0.56 $ 0.25
Restructuring expense 0.03 0.01 0.03 0.04 Acquisition
related expenses, amortizations and adjustments 0.01 0.01 0.02 0.02
Stock-based compensation expense 0.03 0.03 0.08 0.08 Gain on
bargain purchase of a business (0.07 ) - (0.07
) -
Non-GAAP earnings per common share –
diluted $ 0.26 $ 0.19
$ 0.62 $ 0.39
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161018006792/en/
ADTRAN, Inc.Roger Shannon, 256-963-8775Senior Vice President
& CFOorInvestor Services/Assistance:Gayle Ellis,
256-963-8220Investor Services
ADTRAN (NASDAQ:ADTN)
Historical Stock Chart
From Aug 2024 to Sep 2024
ADTRAN (NASDAQ:ADTN)
Historical Stock Chart
From Sep 2023 to Sep 2024