ADTRAN (ADTN) 8-K ADTRAN, Inc. Reports Results for Fourth Quarter 2009 and Declares Quarterly Cash Dividend

Exhibit 99.1

ADTRAN, Inc. Reports Results for Fourth Quarter 2009 and Declares Quarterly Cash Dividend

HUNTSVILLE, Ala.--(BUSINESS WIRE)--January 19, 2010--ADTRAN, Inc. (NASDAQ:ADTN) reported results for the fourth quarter of 2009. Sales increased 11% to $124,231,000 for the quarter, compared to $112,413,000 for the fourth quarter of 2008. Operating income increased 22% to $26,236,000 for the quarter, compared to $21,512,000 for the fourth quarter of 2008. Net income was $18,615,000 for the quarter, compared to $16,709,000 for the fourth quarter of 2008. Earnings per share, assuming dilution, were $0.29 for the quarter, compared to $0.27 for the fourth quarter of 2008.

ADTRAN Chief Executive Officer Tom Stanton stated, “In the fourth quarter, our growth categories demonstrated a strong performance, achieving a 42% year over year revenue increase. Internetworking revenues achieved a record revenue level growing an impressive 46% over the prior year. Broadband Access revenues grew 46% as we continued to see increasing acceptance of our Carrier Ethernet and Broadband services platforms. Optical Access revenues showed continued strength growing 30% as carriers increased investment in wireless bandwidth upgrades. We believe increasing momentum experienced by these categories positions our company well for growth in 2010.”

The Company also reported that stock-based compensation expense for the fourth quarter of 2009 reduced diluted earnings per share by $0.03 compared to $0.02 for the fourth quarter of 2008.

The Company also announced that its Board of Directors declared a cash dividend for the fourth 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 February 4, 2010. The ex-dividend date is February 2, 2010 and the payment date is February 18, 2010.

The Company also confirmed that its fourth quarter conference call will be held Wednesday, January 20, 2010 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 and Form 10-Q for the quarter ended September 30, 2009. 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, 2009		December 31, 2008
Assets
Cash and cash equivalents	$	24,135	$	41,909
Short-term investments		172,469		96,277
Accounts receivable, net		68,044		52,749
Other receivables		4,097		2,896
Inventory, net		45,674		47,406
Prepaid expenses		2,795		2,974
Deferred tax assets, net		8,603		8,653
Total current assets		325,817		252,864
Property, plant, and equipment, net		74,309		75,487
Deferred tax assets, net		-		3,920
Other assets		2,168		103
Long-term investments		162,169		141,241
Total assets	$	564,463	$	473,615
Liabilities and Stockholders' Equity
Accounts payable	$	25,782	$	20,313
Unearned revenue		7,138		6,141
Accrued expenses		4,202		3,536
Accrued wages and benefits		7,634		9,868
Income tax payable, net		3,017		266
Total current liabilities		47,773		40,124
Deferred tax liabilities, net		5,035		-
Other non-current liabilities		11,390		9,422
Bonds payable		47,750		48,250
Total liabilities		111,948		97,796
Stockholders' equity		452,515		375,819
Total liabilities and stockholders' equity	$	564,463	$	473,615

Consolidated Statements of Income (In thousands, except per share data) Unaudited
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
			2009			2008			2009			2008
Sales		$	124,231		$	112,413		$	484,185		$	500,676
Cost of Sales			50,876			44,825			197,223			201,771
Gross Profit			73,355			67,588			286,962			298,905
Selling, general, and administrative expenses			25,863			25,713			99,446			103,286
Research and development expenses			21,256			20,363			83,285			81,819
Operating income			26,236			21,512			104,231			113,800
Interest and dividend income			1,660			2,019			6,933			8,708
Interest expense			(605	)		(609	)		(2,430	)		(2,514	)
Net realized investment gain (loss)			146			(2,258	)		(1,297	)		(2,409	)
Other income (expense), net			59			(21	)		131			688
Income before provision for income taxes			27,496			20,643			107,568			118,273
Provision for income taxes			(8,881	)		(3,934	)		(33,347	)		(39,692	)
Net Income		$	18,615		$	16,709		$	74,221		$	78,581
Weighted average shares outstanding
	Basic		62,586			62,283			62,459			63,549
	Diluted (1)		63,642			62,709			63,356			64,408
Earnings per common share
	Basic	$	0.30		$	0.27		$	1.19		$	1.24
	Diluted (1)	$	0.29		$	0.27		$	1.17		$	1.22
(1) Assumes exercise of dilutive stock options calculated under the treasury stock method.

Supplemental Information Stock Based Compensation Expense (In thousands)
	Three months ended						Twelve months ended
	December 31,						December 31,
		2009			2008			2009			2008
Stock-based compensation expense included in cost of sales	$	72		$	16		$	268		$	253
Selling, general, and administrative expense		879			508			3,039			3,263
Research and development expense		1,041			813			3,680			3,822
Stock-based compensation expense included in operating expenses		1,920			1,321			6,719			7,085
Total stock-based compensation expense		1,992			1,337			6,987			7,338
Tax benefit for expense associated with non-qualified options		(181	)		(69	)		(634	)		(669	)
Total stock-based compensation expense, net of tax	$	1,811		$	1,268		$	6,353		$	6,669

Consolidated Statements of Cash Flow Unaudited (In thousands)
	Twelve Months Ended
	December 31,
		2009			2008
Cash flows from operating activities:
Net income	$	74,221		$	78,581
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,084			9,891
Amortization of net premium of available-for-sale investments		3,686			2,101
Net realized loss on long-term investments		1,297			2,409
Loss (gain) on disposal of property, plant, and equipment		(31	)		83
Stock-based compensation expense		6,987			7,338
Deferred income taxes		(1,024	)		(903	)
Tax benefit from stock option exercises		1,549			981
Excess tax benefit from stock-based compensation arrangements		(998	)		(619	)
Change in operating assets and liabilities:
Accounts receivable, net		(15,143	)		17,918
Other receivables		(1,195	)		189
Inventory		1,732			1,140
Prepaid expenses and other assets		(489	)		(549	)
Accounts payable		5,442			(1,887	)
Accrued expenses and other liabilities		1,010			93
Income tax payable, net		3,027			(951	)
Net cash provided by operating activities		90,155			115,815
Cash flows from investing activities:
Purchases of property, plant, and equipment		(8,740	)		(9,492	)
Proceeds from sales and maturities of available-for-sale investments		186,193			248,688
Purchases of available-for-sale investments		(262,067	)		(242,791	)
Acquisition of business, net of cash acquired		(1,370	)		-
Net cash used in investing activities		(85,984	)		(3,595	)
Cash flows from financing activities:
Proceeds from exercises of stock options		13,471			3,691
Purchases of treasury stock		(15,896	)		(63,569	)
Dividend payments		(22,486	)		(22,919	)
Payments on long-term debt		(500	)		(250	)
Excess tax benefits from stock-based compensation arrangements		998			619
Net cash used in financing activities		(24,413	)		(82,428	)
Net increase (decrease) in cash and cash equivalents		(20,242	)		29,792
Effect of exchange rate changes		2,468			(1,824	)
Cash and cash equivalents, beginning of period		41,909			13,941
Cash and cash equivalents, end of period	$	24,135		$	41,909

CONTACT:
ADTRAN, Inc.
Jim Matthews, 256-963-8775
Senior Vice President/CFO
or
INVESTOR SERVICES/ASSISTANCE:
Gayle Ellis, 256-963-8220