EXHIBIT 99.1
ADTRAN, Inc. Reports Results for First Quarter 2009 and Declares Quarterly Cash Dividend
HUNTSVILLE, Ala.--(BUSINESS WIRE)--April 14, 2009--ADTRAN, Inc. (NASDAQ:ADTN) reported results for the first quarter of 2009. Sales were $110,364,000 for the quarter, compared to $119,885,000 for the first quarter of 2008. Net income was $15,184,000 for the quarter, compared to $17,047,000 for the first quarter of 2008. Earnings per share, assuming dilution, were $0.24 for the quarter, compared to $0.26 for the first quarter of 2008.
ADTRAN Chief Executive Officer Tom Stanton stated, “Our results for the quarter reflect improved operating efficiencies as gross margins achieved another record high and total operating expenses decreased. Most notable during the quarter was the acceleration of our Fiber-to-the-Node business in the U.S. Our ongoing advancements in strategic areas and improvements in operating efficiencies leave our company poised for revenue and earnings growth when conditions improve.”
The Company also reported that during the first quarter of 2009 net realized investment losses of $3.2 million were recorded primarily relating to other than temporary impairments in marketable securities as a result of declines in equity securities markets that continued in the first quarter. Tax effected, this reduced diluted earnings per share by $0.03 for the quarter.
The Company also reported that stock-based compensation expense for the first quarter of 2009 reduced diluted earnings per share by $0.03 compared to $0.03 for the first quarter of 2008.
Additionally, during the first quarter of 2009, the Company completed a review of its estimated tax deductions for years 2005, 2006 and 2007 relating to Section 199 of the Internal Revenue code concerning domestic content of products the Company manufactures. This review resulted in a $1.7 million benefit being recorded in the first quarter of 2009, reducing the Company’s income tax provision for the quarter.
The Company also announced that its Board of Directors declared a cash dividend for the first quarter of 2009. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on April 30, 2009. The ex-dividend date is April 28, 2009 and the payment date is May 14, 2009.
The Company also confirmed that its first quarter conference call will be held Wednesday, April 15, 2009 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 1,700 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, 2008. 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) |
| | | |
| March 31, | | December 31, |
| | 2009 | | | 2008 |
| Assets | | | |
| Cash and cash equivalents | $ | 54,013 | | $ | 41,909 |
| Short-term investments | | 77,932 | | | 96,277 |
| Accounts receivable, net | | 56,835 | | | 52,749 |
| Other receivables | | 3,251 | | | 2,896 |
| Inventory | | 49,691 | | | 47,406 |
| Prepaid expenses | | 2,667 | | | 2,974 |
| Deferred tax assets, net | | 8,596 | | | 8,653 |
| Total current assets | | 252,985 | | | 252,864 |
| | | |
| Property, plant and equipment, net | | 75,335 | | | 75,487 |
| Deferred tax assets, net | | 4,449 | | | 3,920 |
| Other assets | | 97 | | | 103 |
| Long-term investments | | 162,087 | | | 141,241 |
| Total assets | $ | 494,953 | | $ | 473,615 |
| | | |
| Liabilities and Stockholders’ Equity | | | |
| Accounts payable | $ | 23,236 | | $ | 20,313 |
| Unearned revenue | | 6,433 | | | 6,141 |
| Accrued expenses | | 3,934 | | | 3,536 |
| Accrued wages and benefits | | 8,290 | | | 9,868 |
| Income tax payable, net | | 6,514 | | | 266 |
| Total current liabilities | | 48,407 | | | 40,124 |
| | | |
| Other non-current liabilities | | 10,281 | | | 9,422 |
| Bonds payable | | 48,250 | | | 48,250 |
| Total liabilities | | 106,938 | | | 97,796 |
| | | |
| Stockholders’ equity | | 388,015 | | | 375,819 |
| Total liabilities and stockholders’ equity | $ | 494,953 | | $ | 473,615 |
Consolidated Statements of Income (In thousands, except per share data) Unaudited |
| | |
| Three Months Ended | Three Months Ended |
| March 31, 2009 | March 31, 2008 |
| | |
| Sales | $ | 110,364 | | $ | 119,885 | |
| Cost of sales | | 42,904 | | | 49,645 | |
| | |
| Gross profit | | 67,460 | | | 70,240 | |
|
| | |
| Selling, general and administrative expenses | | 23,697 | | | 25,547 | |
| Research and development expenses | | 20,862 | | | 19,553 | |
| | |
| Operating income | | 22,901 | | | 25,140 | |
| | |
| Interest and dividend income | | 1,638 | | | 2,283 | |
| Interest expense | | (603 | ) | | (619 | ) |
| Net realized investment loss | | (3,198 | ) | | (89 | ) |
| Other income (expense), net | | (135 | ) | | 127 | |
| | |
| Income before provision for income taxes | | 20,603 | | | 26,842 | |
| | |
| Provision for income taxes | | (5,419 | ) | | (9,795 | ) |
| | |
| Net income | $ | 15,184 | | $ | 17,047 | |
| | |
| Weighted average shares outstanding | | |
| Basic | | 62,123 | | | 64,598 | |
| Diluted (1) | | 62,586 | | | 65,452 | |
| | |
| Earnings per common share | | |
| Basic | $ | 0.24 | | $ | 0.26 | |
| Diluted (1) | $ | 0.24 | | $ | 0.26 | |
| | |
(1) Assumes exercise of dilutive stock options calculated under the treasury stock method. |
Supplemental Information Stock Based Compensation Expense (In thousands) |
| |
| Three Months Ended |
| March 31, |
| | 2009 | | | 2008 | |
| | |
| Stock-based compensation expense included in cost of sales |
$ |
71 | |
$ |
79 | |
| | |
| Selling, general and administrative expense | | 828 | | | 954 | |
| Research and development expense | | 920 | | | 1,006 | |
| Stock-based compensation expense included in operating expenses | | 1,748 | | | 1,960 | |
| | |
| Total stock-based compensation expense | | 1,819 | | | 2,039 | |
| Tax benefit for expense associated with non-qualified options | | (185 | ) | | (208 | ) |
| Total stock-based compensation expense, net of tax | $ | 1,634 | | $ | 1,831 | |
Consolidated Statements of Cash Flow For the Three Months ended March 31, Unaudited (In thousands) |
| | | | | | | |
| | 2009 | | | | 2008 | |
| Cash flows from operating activities: | | | |
| Net income | $ | 15,184 | | | $ | 17,047 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
| Depreciation and amortization | | 2,507 | | | | 2,392 | |
| Amortization of net premium on available-for-sale investments | | 803 | | | | 372 | |
| Net realized loss on long-term investments | | 3,198 | | | | 89 | |
Loss (gain) on disposal of property, plant and equipment | | 1 | | | | (1 | ) |
Stock-based compensation expense | | 1,819 | | | | 2,039 | |
Deferred income taxes | | (1,765 | ) | | | (1,046 | ) |
| Tax benefit from stock option exercises | | (41 | ) | | | 119 | |
| Excess tax benefits from stock-based compensation arrangements | | 37 | | | | (36 | ) |
| Change in operating assets and liabilities: | | | |
| Accounts receivable, net | | (4,086 | ) | | | (127 | ) |
| Other receivables | | (355 | ) | | | (98 | ) |
| Inventory | | (2,285 | ) | | | 1,101 | |
| Prepaid expenses and other assets | | 313 | | | | (314 | ) |
| Accounts payable | | 2,923 | | | | 3,357 | |
| Accrued expenses and other liabilities | | (33 | ) | | | (1,271 | ) |
| Income tax payable, net | | 6,248 | | | | 10,490 | |
| Net cash provided by operating activities | | 24,468 | | | | 34,113 | |
| Cash flows from investing activities: | | | |
| Purchases of property, plant and equipment | | (2,356 | ) | | | (1,904 | ) |
| Proceeds from sales and maturities of available-for-sale investments | | 63,741 | | | | 73,768 | |
| Purchases of available-for-sale investments | | (66,772 | ) | | | (61,089 | ) |
| Net cash (used in) provided by investing activities | | (5,387 | ) | | | 10,775 | |
| Cash flows from financing activities: | | | |
| Proceeds from stock option exercises | | 49 | | | | 630 | |
| Purchases of treasury stock | | (1,430 | ) | | | (14,871 | ) |
| Dividend payments | | (5,568 | ) | | | (5,846 | ) |
| Excess tax benefits from stock-based compensation arrangements | | (37 | ) | | | 36 | |
| Net cash used in financing activities | | (6,986 | ) | | | (20,051 | ) |
| Net increase in cash and cash equivalents | | 12,095 | | | | 24,837 | |
| Effect of exchange rate changes | | 9 | | | | 307 | |
| Cash and cash equivalents, beginning of period | | 41,909 | | | | 13,941 | |
| Cash and cash equivalents, end of period | $ | 54,013 | | | $ | 39,085 | |
CONTACT:
ADTRAN, Inc.
Jim Matthews, 256-963-8775
Senior Vice President/CFO
or
INVESTOR SERVICES/ASSISTANCE:
Gayle Ellis, 256-963-8220
