ADTRAN, Inc. Reports Results for the Second Quarter 2013 and Declares Quarterly Cash Dividend

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ADTRAN, Inc. Reports Results for the Second Quarter 2013 and Declares Quarterly Cash Dividend

HUNTSVILLE, Ala.--(BUSINESS WIRE)-- ADTRAN, Inc. (NASDAQ:ADTN) reported results for the second quarter 2013. For the quarter, sales were $162,233,000 compared to $183,998,000 for the second quarter of 2012. Net income was $9,859,000 for the quarter compared to $21,070,000 for the second quarter of 2012. Earnings per share, assuming dilution, were $0.17 for the quarter compared to $0.33 for the second quarter of 2012. Non-GAAP earnings per share for the quarter were $0.21 compared to $0.38 for the second quarter of 2012. The reconciliation between GAAP earnings per share, diluted, and non-GAAP earnings per share, diluted, is in the table provided.


ADTRAN Chief Executive Officer Tom Stanton stated, "Continuing improvement in our Internetworking and Broadband Access product areas led revenues which exceeded estimates for the quarter. During the quarter we benefited from market share gains, the geographic expansion we began last year and an improved spending environment."

The Company also announced that its Board of Directors declared a cash dividend for the second quarter of 2013. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on July 25, 2013. The ex-dividend date is July 23, 2013 and the payment date is August 8, 2013.

The Company confirmed that its second quarter conference call will be held Wednesday, July 10, 2013 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 www.adtran.com or www.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 www.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 www.adtran.com for at least 12 months following the call.

ADTRAN, Inc. is a leading global provider of networking and communications equipment. ADTRAN's products enable voice, data, video and Internet communications across a variety of network infrastructures. ADTRAN solutions are currently in use by service providers, private enterprises, government organizations, and millions of individual users worldwide. For more information, please visit www.adtran.com.

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, 2012 and on Form 10-Q for the quarter ended March 31, 2013. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.

 
 
 

Condensed Consolidated Balance Sheet
(Unaudited)
(In thousands)

 
 June 30,

2013

 December 31,
2012
Assets 
Cash and cash equivalents$     37,559$68,457
Short-term investments152,581160,481
Accounts receivable, net103,51681,194
Other receivables18,82016,253
Inventory87,773102,583
Prepaid expenses4,9264,148
Deferred tax assets, net       13,114 13,055
Total Current Assets418,289446,171
 
Property, plant and equipment, net77,67080,246
Deferred tax assets, net12,17110,261
Goodwill3,4923,492
Other assets12,04613,482
Long-term investments       292,660 332,729
 
Total Assets $     816,328$886,381
 
Liabilities and Stockholders' Equity
Accounts payable$62,097$42,173
Unearned revenue25,80838,051
Accrued expenses12,02010,309
Accrued wages and benefits14,09315,022
Income tax payable, net       2,317 1,211
Total Current Liabilities116,335106,766
 
Non-current unearned revenue25,26623,803
Other non-current liabilities19,04217,406
Bonds payable       46,000 46,000
Total Liabilities206,643193,975
 
Stockholders' Equity       609,685 692,406
 
Total Liabilities and Stockholders' Equity $     816,328$886,381

 
 
 

Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)

 
 Three Months Ended Six Months Ended
June 30,June 30,
2013 20122013 2012
 
Sales$162,233$183,998$305,246$318,733
Cost of sales 82,435  88,797  155,771  149,445 
 
Gross Profit79,79895,201149,475169,288
 
Selling, general and administrative expenses32,68535,90563,28869,017
Research and development expenses 33,060  32,458  65,571  57,252 
 
Operating Income14,05326,83820,61643,019
 
Interest and dividend income1,6741,9263,4423,787
Interest expense(575)(581)(1,156)(1,168)
Net realized investment gain1,5532,3565,1984,823
Other income (expense), net129492(1,543)633
Gain on bargain purchase of a business -  1,753  -  1,753 
 
Income before provision for income taxes16,83432,78426,55752,847
 
Provision for income taxes (6,975) (11,714) (8,808) (18,816)
 
Net Income$9,859 $21,070 $17,749 $34,031 
 
Weighted average shares outstanding - basic59,05663,61960,44363,720
Weighted average shares outstanding - diluted (1)59,31164,39360,66064,628
 
Earnings per common share - basic$0.17$0.33$0.29$0.53
Earnings per common share - diluted (1)$0.17$0.33$0.29$0.53
 

(1) Assumes exercise of dilutive stock options calculated under the treasury stock method.

 
 
 

Consolidated Statements of Comprehensive Income
(Unaudited)
(In thousands)

 
 Three Months Ended Six Months Ended
June 30,June 30,
2013 20122013 2012
 
Net Income$9,859 $21,070 $17,749 $34,031
 
Other Comprehensive Income (Loss), net of tax:
 
Unrealized gains (losses) on available-for-sale securities(1,698)(5,235)(3,342)1,522
Foreign currency translation (1,713) (96) (1,390) 58
 
Other Comprehensive Income (Loss), net of tax (3,411) (5,331) (4,732) 1,580
 
Comprehensive Income (Loss), net of tax$6,448 $15,739 $13,017 $35,611

 
 
 

Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

 
 Six Months Ended
June 30,
2013 2012
Cash flows from operating activities:
Net income$17,749$34,031
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization7,3736,615
Amortization of net premium on available-for-sale investments3,3154,330
Net realized gain on long-term investments(5,198)(4,823)
Net (gain) loss on disposal of property, plant and equipment17(204)
Gain on bargain purchase of a business-(1,753)
Stock-based compensation expense4,3404,432
Deferred income taxes150(2,427)
Tax benefit from stock option exercises211,701
Excess tax benefits from stock-based compensation arrangements(21)(1,346)
Change in operating assets and liabilities:
Accounts receivable, net(23,018)(43,062)
Other receivables(2,727)1,997
Inventory13,3365,548
Prepaid expenses and other assets(665)(1,527)
Accounts payable20,25212,877
Accrued expenses and other liabilities(6,587)13,099
Income tax payable, net 1,094  7,508 
Net cash provided by operating activities29,43136,996
 
Cash flows from investing activities:
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