ADTRAN (ADTN) 8-K ADTRAN, Inc. Reports Fourth Quarter 2007 Results and Declares Quarterly Cash Dividend

Exhibit 99.1

ADTRAN, Inc. Reports Fourth Quarter 2007 Results and Declares Quarterly Cash Dividend

HUNTSVILLE, Ala.--(BUSINESS WIRE)--ADTRAN, Inc. (NASDAQ:ADTN) reported results for the fourth quarter of 2007. Sales increased 9% to $118,971,000 for the quarter compared to $109,114,000 for the fourth quarter of 2006. Operating income increased 24% to $25,428,000 for the quarter compared to $20,564,000 for the fourth quarter of 2006. Net income was $18,111,000 for the quarter compared to $17,056,000 for the fourth quarter of 2006. Earnings per share, assuming dilution, were $0.27 for the quarter compared to $0.24 for the fourth quarter of 2006.

ADTRAN Chief Executive Officer Tom Stanton stated, “In the fourth quarter we continued to see the benefits of our strategy of expanding into system level applications and new geographical areas. Total revenue in our growth businesses grew 56% in the quarter compared to the same period in the prior year. Our Broadband Access category led this growth with a record 98% revenue increase compared to the same period in the prior year, as we began to see the effects of market share gains for fiber-to-the-node applications in both domestic and international markets. Optical Access and Internetworking product categories continued to demonstrate strong momentum as we saw solid growth in these areas for the fourth quarter compared to the same period in the prior year.”

Tom Stanton also stated, “During the year 2007 we were successful in capturing a significant number of meaningful new customer opportunities. We believe these achievements along with our strong operating model will provide considerable, long term revenue and earnings growth for our company.”

The Company also announced that its Board of Directors declared a cash dividend for the fourth quarter of 2007. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on February 7, 2008. The ex-dividend date is February 5, 2008 and the payment date is February 21, 2008.

The Company also confirmed that its fourth quarter conference call will be held Tuesday, January 22, 2008 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 http://www.adtran.com or http://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 http://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 http://www.adtran.com for at least 12 months following the call.

ADTRAN, Inc. is a leading global provider of networking and communications equipment, with a portfolio of more than 1,600 solutions for use in the last mile of today's telecommunications networks. Widely deployed by carriers and enterprises alike, ADTRAN solutions enable voice, data, video, and Internet communications across copper, fiber, and wireless network infrastructures. ADTRAN solutions are currently in use by every major U.S. service provider and many global ones, as well as by thousands of public, private and governmental organizations worldwide.

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, 2006 and Form 10-Q for the quarter ended September 30, 2007. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.

Condensed Balance Sheet Unaudited (In thousands)
	December 31,		December 31,
	2007		2006
Assets
Cash and cash equivalents	$	13,941	$	40,147
Short-term investments		148,416		99,700
Accounts receivable, net		70,667		56,769
Other receivables		3,085		7,481
Income tax receivable, net		-		1,446
Inventory, net		48,546		53,117
Prepaid expenses and other current assets		9,682		10,505
Total current assets		294,337		269,165
Property, plant and equipment, net		75,969		80,194
Deferred tax assets, net		1,113		-
Other assets		505		534
Long-term investments		107,296		189,765
Total assets	$	479,220	$	539,658
Liabilities and Stockholders’ Equity
Accounts payable	$	22,200	$	30,321
Unearned revenue		5,361		5,802
Accrued expenses		3,801		3,827
Accrued wages and benefits		10,497		9,579
Income tax payable, net		1,217		-
Total current liabilities		43,076		49,529
Deferred tax liabilities, net		-		694
Other non-current liabilities		9,213		4,667
Bonds payable		48,500		48,812
Total liabilities		100,789		103,702
Stockholders’ equity		378,431		435,956
Total liabilities and stockholders’ equity	$	479,220	$	539,658

Consolidated Statements of Income (In thousands, except per share data) Unaudited
	Three Months Ended			Three Months Ended			Twelve Months Ended			Twelve Months Ended
	December 31, 2007			December 31, 2006			December 31, 2007			December 31, 2006
Sales	$	118,971		$	109,114		$	476,778		$	472,708
Cost of sales		49,452			45,727			193,792			193,747
Gross profit		69,519			63,387			282,986			278,961
Selling, general and administrative expenses		25,363			25,704			103,329			102,646
Research and development expenses		18,728			17,119			75,367			70,700
Operating income		25,428			20,564			104,290			105,615
Interest income		2,765			3,212			11,521			13,493
Interest expense		(626	)		(632	)		(2,502	)		(2,532	)
Net realized investment gain		(10	)		250			498			1,379
Other income, net		64			128			764			570
Life insurance proceeds		-			-			1,000			-
Income before provision for income taxes		27,621			23,522			115,571			118,525
Provision for income taxes		(9,510	)		(6,466	)		(39,236	)		(40,192	)
Net income	$	18,111		$	17,056		$	76,335		$	78,333
Weighted average shares outstanding
Basic		65,752			70,228			67,848			73,451
Diluted (1)		66,866			71,788			69,212			75,197
Earnings per common share
Basic	$	0.28		$	0.24		$	1.13		$	1.07
Diluted (1)	$	0.27		$	0.24		$	1.10		$	1.04
(1) Assumes exercise of dilutive stock options calculated under the treasury stock method.

Consolidated Statements of Cash Flow For the Twelve Months ended December 31, Unaudited (In thousands)
	2007			2006
Cash flows from operating activities:
Net income	$	76,335		$	78,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,695			10,827
Amortization of net premium on available-for-sale investments		2,094			3,137
Gain on sale of long-term investments		(580	)		(1,379	)
Loss on disposal of property, plant and equipment		65			73
Stock-based compensation expense		7,815			8,138
Deferred income taxes		(2,960	)		(4,332	)
Tax benefit from stock option exercises		4,408			1,583
Excess tax benefits from stock-based compensation arrangements		(3,249	)		(973	)
Change in operating assets and liabilities:
Accounts receivable, net		(13,898	)		9,477
Other receivables		4,396			(4,267	)
Income tax receivable, net		1,446			(1,446	)
Inventory, net		4,571			(2,185	)
Prepaid expenses and other assets		596			167
Accounts payable		(7,933	)		4,932
Accrued expenses and other liabilities		3,517			(2,256	)
Income tax payable, net		1,507			(4,551	)
Net cash provided by operating activities		88,825			95,278
Cash flows from investing activities:
Purchases of property, plant and equipment		(6,535	)		(6,061	)
Proceeds from sales and maturities of available-for-sale investments		253,339			323,211
Purchases of available-for-sale investments		(217,316	)		(293,098	)
Acquisition of business		-			(400	)
Net cash provided by investing activities		29,488			23,652
Cash flows from financing activities:
Proceeds from stock option exercises		15,288			4,441
Purchases of treasury stock		(138,589	)		(170,479	)
Dividend payments		(24,600	)		(26,755	)
Payments on long-term debt		(500	)		(500	)
Excess tax benefits from stock-based compensation arrangements		3,249			973
Net cash used in financing activities		(145,152	)		(192,320	)
Net decrease in cash and cash equivalents		(26,839	)		(73,390	)
Effect of exchange rate changes		633			743
Cash and cash equivalents, beginning of period		40,147			112,794
Cash and cash equivalents, end of period	$	13,941		$	40,147

CONTACT:
ADTRAN, Inc.
Jim Matthews, Senior Vice President/CFO, 256-963-8775
or
Investor Services/Assistance:
Gayle Ellis, 256-963-8220