Exhibit 99.1
ADTRAN, Inc. Reports First Quarter 2005 Results and
Declares Quarterly Cash Dividend
HUNTSVILLE, Ala.--(BUSINESS WIRE)--April 18, 2005--ADTRAN, Inc.
(NASDAQ:ADTN) reported results for the first quarter ended March 31,
2005. Sales were $104,577,000 for the quarter compared to
$114,039,000 for the first quarter of 2004.
Net income was $15,220,000 for the quarter compared to $20,398,000
for the first quarter of 2004. Earnings per share, assuming dilution,
were $0.20 for the quarter compared to $0.25 for the first quarter of
2004.
Gross margin improved to 57.6% for the quarter compared to 57.1%
in the first quarter of 2004. The increase in gross margin is
principally the result of continuing improvements in manufacturing
efficiencies and product cost reductions.
Net cash provided by operating activities totaled $24 million for
the quarter. Unrestricted cash and marketable securities totaled $292
million, at March 31, 2005, after repurchasing 1.15 million shares of
common stock during the quarter for $20.7 million.
ADTRAN Chairman and Chief Executive Officer Mark Smith stated,
"Our results for the quarter benefited from sequential growth in
Systems revenue which included sequential revenue increases in DSLAM,
optical access and NetVanta product categories. Increases in these
categories offset seasonal declines normally seen in the first quarter
and provided a positive impact to gross margins."
The Company also announced that its Board of Directors declared a
cash dividend for the eighth consecutive quarter. The quarterly cash
dividend is $0.08 per common share to be paid to holders of record at
the close of business on May 5, 2005. The ex-dividend date is May 3,
2005 and the payment date is May 19, 2005.
The Company also confirmed that its first quarter conference call
will be held Tuesday, April 19 at 9:30 a.m. Central Time. Guidance for
the second quarter and year 2005 will be issued during this conference
call. This conference call will be webcast 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 one of the world's most successful network access
equipment suppliers, with a 17-year history of profitability and a
portfolio of more than 1,300 solutions for use in the last mile of
today's telecommunications networks. Widely deployed by both carriers
and enterprises, 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
domestic service provider and many international ones, as well as by
thousands of public, private and government organizations worldwide.
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, 2004. Such risks and uncertainties could cause actual
results to differ materially from those in the forward-looking
statements included in this press release.
Condensed Statements of Income (1)
For the quarters ending 3/31/05 and 3/31/04
(In thousands, except per share data)
Unaudited
First First
Quarter Quarter
2005 2004
--------- ---------
Sales $104,577 $114,039
Cost of Sales $44,349 $48,951
--------- ---------
Gross Profit $60,228 $65,088
Selling, general and administrative expenses $22,949 $21,840
Research and development expenses $16,343 $14,817
--------- ---------
Profit from operations $20,936 $28,431
Interest expense ($583) ($644)
Other income (primarily interest) $2,848 $2,432
--------- ---------
Income before provision for income taxes $23,201 $30,219
Provision for income taxes ($7,981) ($9,821)
--------- ---------
Net income $15,220 $20,398
========= =========
Weighted average shares
Basic 75,754 79,500
Diluted (2) 77,318 82,792
Earnings per common share
Basic $0.20 $0.26
Diluted (2) $0.20 $0.25
(1) Certain reclassifications have been made to the 2004 Income
Statement in order to conform with the 2005 presentation. These
reclassifications had no effect on previously reported net income.
(2) Assumes exercise of dilutive stock options calculated under the
treasury stock method.
Condensed Balance Sheet
March 31, 2005
Unaudited
(In thousands)
March 31,
2005
-------------
Assets
Cash & cash equivalents $48,892
Short-term investments $134,110
Accounts receivable (net) $64,883
Other receivables $4,571
Income tax receivables $0
Inventory (net) $40,426
Prepaid expenses and other current assets $7,372
-------------
Total current assets $300,254
Equipment (net) $21,879
Land $4,263
Bldg. & land improvements (net) $62,175
Other assets $584
Long-term investments $161,022
-------------
Total long-term assets $249,923
Total assets $550,177
=============
Liabilities and stockholders' equity
Accounts payable $22,226
Accrued wages and benefits $5,835
Accrued income taxes $6,335
Accrued liabilities $5,098
-------------
Total current liabilities $39,494
Deferred tax liabilities $3,770
Other non-current liabilities $2,674
Long-term debt $50,000
-------------
Total long-term liabilities $56,444
Total liabilities $95,938
Stockholders' equity $454,239
-------------
Total liabilities and stockholders' equity $550,177
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CONTACT: ADTRAN, Inc., Huntsville
Jim Matthews, 256-963-8775
or
Investor Services/Assistance:
Charlene Little, 256-963-8611
or
Cathy Bartels, 256-963-8220