EXHIBIT 99.1
ADTRAN, Inc. Reports Third Quarter 2007 Results and
Declares Quarterly Cash Dividend
HUNTSVILLE, Ala.--(BUSINESS WIRE)--Oct. 15, 2007--ADTRAN, Inc.
(NASDAQ:ADTN) reported results for the third quarter of 2007. Sales
were $123,821,000 for the quarter compared to $123,674,000 for the
second quarter of 2007 and $132,650,000 for the third quarter of 2006.
Net income was $21,453,000 for the quarter compared to $19,843,000 for
the second quarter of 2007 and $24,208,000 for the third quarter of
2006. Earnings per share, assuming dilution, were $0.31 for the
quarter compared to $0.28 for the second quarter of 2007 and $0.33 for
the third quarter of 2006.
ADTRAN Chief Executive Officer Tom Stanton stated, "Although the
environment proved challenging in the third quarter, we continued to
move forward in our growth product areas. Optical Access product
revenues grew substantially quarter to quarter reflecting a
broad-based increase in activity. Internetworking products achieved
their fifth sequential record revenue quarter led by strong NetVanta
product line sales growth. Our long term outlook remains bright as we
continue to see success operationalizing recent awards as well as
capturing new customer opportunities."
The Company also announced that its Board of Directors declared a
cash dividend for the third 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 November 1, 2007. The ex-dividend date is
October 30, 2007, and the payment date is November 15, 2007.
The Company also confirmed that its third quarter conference call
will be held Tuesday, October 16, 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 June 30, 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)
September December
30, 31,
2007 2006
--------- --------
Assets
Cash and cash equivalents $ 32,850 $ 40,147
Short-term investments 137,192 99,700
Accounts receivable, net 69,300 56,769
Other receivables 4,367 7,481
Income tax receivable, net - 1,446
Inventory, net 47,874 53,117
Prepaid expenses and other current assets 9,620 10,505
------------------
Total current assets 301,203 269,165
Property, plant and equipment, net 77,312 80,194
Deferred tax assets, net 890 -
Other assets 503 534
Long-term investments 130,694 189,765
------------------
Total assets $510,602 $539,658
==================
Liabilities and Stockholders' Equity
Accounts payable $ 28,553 $ 30,321
Unearned revenue 5,395 5,802
Accrued expenses 4,729 3,827
Accrued wages and benefits 7,611 9,579
Income tax payable, net 62 -
--------- --------
Total current liabilities 46,350 49,529
Deferred tax liabilities, net - 694
Other non-current liabilities 8,218 4,667
Bonds payable 48,500 48,812
------------------
Total liabilities 103,068 103,702
Stockholders' equity 407,534 435,956
------------------
Total liabilities and stockholders' equity $510,602 $539,658
========= ========
Condensed Statements of Income
(In thousands, except per share data)
Unaudited
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
--------- --------- --------- ---------
Sales $123,821 $132,650 $357,807 $363,594
Cost of sales 49,703 54,015 144,340 148,020
---------------------------------------
Gross profit 74,118 78,635 213,467 215,574
Selling, general and
administrative expenses 25,335 25,911 77,966 76,942
Research and development
expenses 18,735 18,346 56,639 53,581
---------------------------------------
Operating income 30,048 34,378 78,862 85,051
Interest income 2,842 3,370 8,756 10,281
Interest expense (631) (633) (1,876) (1,900)
Net realized investment gain 240 55 508 1,129
Other income, net 203 93 700 442
Life insurance proceeds - - 1,000 -
---------------------------------------
Income before provision for
income taxes 32,702 37,263 87,950 95,003
Provision for income taxes (11,249) (13,055) (29,726) (33,726)
---------------------------------------
Net income $ 21,453 $ 24,208 $ 58,224 $ 61,277
=======================================
Weighted average shares
outstanding
Basic 67,526 71,688 68,554 74,537
Diluted (1) 68,872 73,478 70,009 76,550
Earnings per common share
Basic $ 0.32 $ 0.34 $ 0.85 $ 0.82
Diluted (1) $ 0.31 $ 0.33 $ 0.83 $ 0.80
(1) Assumes exercise of dilutive stock options calculated under the
treasury stock method.
Condensed Statements of Cash Flow
For the nine months ended September 30,
Unaudited
(In thousands)
2007 2006
---------- ----------
Cash flows from operating activities:
Net income $ 58,224 $ 61,277
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 8,049 8,225
Amortization of net premium on available-
for-sale investments 1,664 2,489
Gain on sale of long-term investments (508) (1,325)
Loss on disposal of property, plant and
equipment 64 68
Stock-based compensation expense 6,740 6,094
Deferred income taxes (3,090) (2,140)
Tax benefit from stock option exercises 4,220 1,380
Excess tax benefits from stock-based
compensation arrangements (3,132) (860)
Change in operating assets and liabilities:
Accounts receivable, net (12,531) (7,252)
Other receivables 3,114 (3,857)
Income tax receivable, net 1,446 -
Inventory, net 5,243 3,477
Prepaid expenses and other assets 620 (152)
Accounts payable (1,768) 9,285
Accrued expenses and other liabilities 598 (4,759)
Income tax payable, net 352 858
---------------------
Net cash provided by operating activities 69,305 72,808
Cash flows from investing activities:
Purchases of property, plant and equipment (5,231) (4,822)
Proceeds from sales and maturities of available-
for-sale investments 177,572 255,325
Purchases of available-for-sale investments (152,310) (247,849)
Acquisition of business - (400)
---------------------
Net cash provided by investing activities 20,031 2,254
Cash flows from financing activities:
Proceeds from stock option exercises 15,045 3,764
Purchases of treasury stock (96,599) (141,616)
Dividend payments (18,628) (20,389)
Payments on long-term debt (312) (500)
Excess tax benefits from stock-based compensation
arrangements 3,132 860
---------------------
Net cash used in financing activities (97,362) (157,881)
Net decrease in cash and cash equivalents (8,026) (82,819)
Effect of exchange rate changes 729 406
Cash and cash equivalents, beginning of period 40,147 112,794
---------------------
Cash and cash equivalents, end of period $ 32,850 $ 30,381
=====================
CONTACT: ADTRAN, Inc.
Jim Matthews, 256-963-8775
Senior Vice President/CFO
or
INVESTOR SERVICES/ASSISTANCE:
Gayle Ellis, 256-963-8220