EXHIBIT 99.1
ADTRAN, Inc. Reports First Quarter 2007 Results
and Declares Quarterly Cash Dividend
HUNTSVILLE, Ala.--(BUSINESS WIRE)--April 16, 2007--ADTRAN, Inc.
(NASDAQ:ADTN) reported results for the first quarter of 2007. Sales
were $110,312,000 for the quarter compared to $108,648,000 for the
first quarter of 2006. Net income was $16,928,000 for the quarter
compared to $16,255,000 for the first quarter of 2006. Earnings per
share, assuming dilution, were $0.24 for the quarter compared to $0.21
for the first quarter of 2006. The Company also reported that the
first quarter results included a benefit of $893,000 in "Provision for
income taxes," primarily relating to closure of tax audits from prior
years. The results also included a pre-tax life insurance benefit of
$1,000,000 in "Other income" for an event that occurred in the first
quarter of 2007. These two items increased earnings per share,
assuming dilution, by approximately $0.02 in the first quarter.
ADTRAN Chief Executive Officer Tom Stanton stated, "First quarter
revenues were better than anticipated due to strength in HDSL demand,
improving broadband access trends, and ongoing momentum in
internetworking products. We believe our company is well positioned
for continuing growth as a result of introductions and new business
wins with Broadband and Optical Access products, and current
activities related to our new product launches."
The Company also announced that its Board of Directors declared a
cash dividend for the first 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 May 3, 2007. The ex-dividend date is May 1,
2007 and the payment date is May 17, 2007.
The Company also confirmed that its first quarter conference call
will be held Tuesday, April 17, 2007 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. 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
March 31, 2007
Unaudited
(In thousands)
March 31,
2007
--------------
Assets
Cash & cash equivalents $24,168
Short-term investments 131,005
Accounts receivable (net) 56,247
Other receivables 3,803
Inventory (net) 48,898
Prepaid expenses and other current assets 10,189
--------------
Total current assets 274,310
Equipment (net) 17,857
Land 4,263
Bldg. & land improvements (net) 57,435
Other assets 526
Long-term investments 182,467
--------------
Total long-term assets 262,548
--------------
Total assets $536,858
==============
Liabilities and stockholders' equity
Accounts payable $20,158
Accrued wages and benefits 7,002
Accrued liabilities 13,566
--------------
Total current liabilities 40,726
Deferred tax liabilities 1
Other non-current liabilities 6,363
Long term-debt 48,812
--------------
Total long-term liabilities 55,176
Total liabilities 95,902
Stockholders' equity 440,956
--------------
--------------
Total liabilities and stockholders'
equity $536,858
==============
Condensed Statements of Income
For the three month periods ended March 31, 2007 and 2006
(In thousands, except per share data)
Unaudited
Three Months Ended Three Months Ended
March 31, 2007 March 31, 2006
------------------ ------------------
Sales $110,312 $108,648
Cost of Sales 44,522 44,140
------------------ ------------------
Gross Profit 65,790 64,508
Selling, general and
administrative expenses 26,476 24,687
Research and development
expenses 18,358 17,766
------------------ ------------------
Income from operations 20,956 22,055
Interest expense (619) (634)
Other income, net 4,289 4,037
------------------ ------------------
Income before provision for
income taxes 24,626 25,458
Provision for income taxes (7,698) (9,203)
------------------ ------------------
Net income $16,928 $16,255
================== ==================
Weighted average shares
Basic 69,358 76,655
Diluted (1) 70,889 78,909
Earnings per common share
Basic $0.24 $0.21
Diluted (1) $0.24 $0.21
(1) Assumes exercise of dilutive stock options calculated under the
treasury stock method.
CONTACT: ADTRAN, Inc.
Jim Matthews, 256-963-8775
Senior Vice President/CFO
or
Investor Services/Assistance:
Gayle Ellis, 256-963-8220