Exhibit 99.1
ADTRAN, Inc. Reports Second Quarter 2007 Results, Announces Additional Five
Million Share Repurchase Plan and Declares Quarterly Cash Dividend
HUNTSVILLE, Ala.--(BUSINESS WIRE)--July 16, 2007--ADTRAN, Inc.
(NASDAQ: ADTN) reported results for the second quarter of 2007. Sales
were $123,674,000 for the quarter compared to $110,312,000 for the
first quarter of 2007 and $122,296,000 for the second quarter of 2006.
Net income was $19,843,000 for the quarter compared to $16,928,000 for
the first quarter of 2007 and $20,814,000 for the second quarter of
2006. Earnings per share, assuming dilution, were $0.28 for the
quarter compared to $0.24 for the first quarter of 2007 and $0.27 for
the second quarter of 2006.
ADTRAN Chief Executive Officer Tom Stanton stated, "Continuing
momentum in all of our growth businesses augmented by overall
improving order flows in traditional product areas provided a strong
sequential increase in revenue. Combined, our growth businesses saw a
healthy year over year increase for the quarter driven largely by our
Internetworking product lines, as on-going activities in channel
development continued to drive acceptance of our NetVanta and IP
business gateway products."
The Company also announced that its Board of Directors has
authorized the repurchase of an additional 5,000,000 shares of the
Company's common stock to commence upon completion of the repurchase
plan announced July 17, 2006. During the second quarter of 2007, the
Company repurchased 1,437,000 shares of its common stock under the
July 2006 plan. There are 173,000 shares remaining to be repurchased
under the July 2006 plan. Upon completion of the current plan, the new
plan will be implemented through open market or private purchases from
time to time as conditions warrant. Since the beginning of 2004, the
Company has repurchased a total of 14,150,000 shares of its common
stock.
The Company also announced that its Board of Directors declared a
cash dividend for the second 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 August 2, 2007. The ex-dividend date is July
31, 2007 and the payment date is August 16, 2007.
The Company also confirmed that its second quarter conference call
will be held Tuesday, July 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 and Form 10-Q for the quarter ended March 31, 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)
June 30, December 31,
2007 2006
-------- ------------
Assets
Cash & cash equivalents $ 22,061 $ 40,147
Short-term investments 152,494 99,700
Accounts receivable (net) 66,422 56,769
Other receivables 4,351 7,481
Income tax receivable (net) - 1,446
Inventory (net) 42,790 53,117
Prepaid expenses and other current
assets 9,598 10,505
-------- ------------
Total current assets 297,716 269,165
Equipment (net) 17,578 18,101
Land 4,263 4,263
Bldg. & land improvements (net) 56,602 57,830
Deferred tax assets 298 -
Other assets 688 534
Long-term investments 156,848 189,765
-------- ------------
Total long-term assets 236,277 270,493
Total assets $533,993 $ 539,658
======== ============
Liabilities and stockholders' equity
Accounts payable $ 27,226 $ 30,321
Accrued wages and benefits 9,605 9,579
Accrued income taxes (net) 149 -
Accrued liabilities 10,183 9,629
-------- ------------
Total current liabilities 47,163 49,529
Deferred tax liabilities - 694
Other non-current liabilities 7,649 4,667
Bonds payable 48,812 48,812
-------- ------------
Total long-term liabilities 56,461 54,173
Total liabilities 103,624 103,702
Stockholders' equity 430,369 435,956
-------- ------------
Total liabilities and stockholders'
equity $533,993 $ 539,658
======== ============
Condensed Statements of Income
(In thousands, except per share data)
Unaudited
Three Months Three Months
Ended Ended
June 30, 2007 June 30, 2006
------------- -------------
Sales $ 123,674 $ 122,296
Cost of sales 50,115 49,865
------------- -------------
Gross profit 73,559 72,431
Selling, general and administrative
expenses 26,155 26,344
Research and development expenses 19,546 17,469
------------- -------------
Income from operations 27,858 28,618
Interest expense (626) (633)
Other income (primarily interest) 3,390 4,297
Life insurance proceeds - -
------------- -------------
Income before provision for income taxes 30,622 32,282
Provision for income taxes (10,779) (11,468)
------------- -------------
Net income $ 19,843 $ 20,814
============= =============
Weighted average shares outstanding
Basic 68,797 75,324
Diluted (1) 70,267 77,284
Earnings per common share
Basic $ 0.29 $ 0.28
Diluted (1) $ 0.28 $ 0.27
Six Months Six Months
Ended Ended
June 30, 2007 June 30, 2006
------------- -------------
Sales $ 233,986 $ 230,944
Cost of sales 94,637 94,005
------------- -------------
Gross profit 139,349 136,939
Selling, general and administrative
expenses 52,631 51,031
Research and development expenses 37,904 35,235
------------- -------------
Income from operations 48,814 50,673
Interest expense (1,245) (1,267)
Other income (primarily interest) 6,679 8,334
Life insurance proceeds 1,000 -
------------- -------------
Income before provision for income taxes 55,248 57,740
Provision for income taxes (18,477) (20,671)
------------- -------------
Net income $ 36,771 $ 37,069
============= =============
Weighted average shares outstanding
Basic 69,073 75,986
Diluted (1) 70,583 78,098
Earnings per common share
Basic $ 0.53 $ 0.49
Diluted (1) $ 0.52 $ 0.47
(1) Assumes exercise of dilutive stock options calculated under the
treasury stock method.
Condensed Statements of Cash Flow
For the six months ended June 30,
Unaudited
(In thousands)
2007 2006
---------- ----------
Cash flows from operating activities:
Net income $ 36,771 $ 37,069
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 5,336 5,494
Amortization of premium on available-for-
sale investments 1,153 1,730
Gain on sale of long-term available-for-
sale investments (267) (1,074)
Loss on sale of property, plant and
equipment 71 8
Stock-based compensation expense 4,535 4,029
Deferred income taxes (2,159) (1,232)
Tax benefit from stock option exercises 3,787 1,271
Excess tax benefits from stock-based
compensation arrangements
(2,842) (818)
Change in operating assets:
Accounts receivable (9,652) 1,796
Other receivable 3,155 (1,480)
Income tax receivable 1,446 -
Inventory 10,327 3,402
Prepaid expenses and other assets 930 (667)
Accounts payable (3,096) 867
Accrued expenses and other liabilities 2,082 (1,452)
Income tax payable 439 (191)
---------- ----------
Net cash provided by operating activities 52,016 48,752
Cash flows from investing activities:
Expenditures for property, plant and
equipment (3,816) (3,547)
Proceeds from sales and maturities of
available-for-sale investments 98,952 126,427
Purchases of available-for-sale investments (116,650) (157,353)
Acquisition of business - (400)
---------- ----------
Net cash used in investing activities (21,514) (34,873)
Cash flows from financing activities:
Proceeds from stock option exercises 12,921 3,294
Purchase of treasury stock (52,289) (82,710)
Dividend payments (12,465) (13,779)
Excess tax benefits from stock-based
compensation arrangements 2,842 818
---------- ----------
Net cash used in financing activities (48,991) (92,377)
Net decrease in cash and cash equivalents (18,489) (78,498)
Effect of exchange rate changes 403 372
Cash and cash equivalents, beginning of
period 40,147 112,794
---------- ----------
Cash and cash equivalents, end of period $ 22,061 $ 34,668
========== ==========
CONTACT: ADTRAN, Inc.
Jim Matthews, Senior Vice President/CFO, 256-963-8775
or
Investor Relations:
Gayle Ellis, 256-963-8220