Communication network solution provider
) reported strong second-quarter 2013 financial results, owing to
strong contributions from its Internetworking and Broadband
Access product divisions. The results were positively impacted by
an improved spending atmosphere and increased strategic
investment by its carrier customers. ADTRAN currently has a Zacks
Rank #1 (Strong Buy).
In the second quarter of 2013, GAAP net income was $9.9
million or 17 cents per share compared with $21.1 million or 33
cents per share in the year-ago quarter. However, quarterly
adjusted earnings per share were 18 cents, well above the Zacks
Consensus Estimate of 15 cents per share. The company reported
quarterly total revenue of $162.2 million, down 11.8% year over
year but outpaced the Zacks Consensus Estimate of $153
Quarterly gross margin was 49.2% compared with 51.7% in the
prior-year quarter. Operating income registered a steep drop of
47.6% year over year to $14.1 million. Quarterly operating margin
was 8.7% compared with 14.6% in the prior-year quarter. The
company's board of directors declared a cash dividend of 9 cents
per share for the quarter. The dividend will be paid on Aug 8 to
shareholders of record as of Jul 25.
During the first half of 2013, ADTRAN generated $29.4 million
of cash from operations compared with $37 million in the year-ago
period. Free cash flow, in the reported period, was $25.8 million
compared with $29.2 million in the prior-year period. At the end
of the second quarter of 2013, cash and marketable securities
were $190.1 million compared with $228.9 million at the end of
2012. Total debt, at the end of the reported quarter, was $46
million, remaining same to the end of 2012.
Other Stocks to Consider
Other stocks in this industry that warrant a look includes
Crown Castle International Corp.
). While Calix currently carries a Zacks Rank #1 (Strong Buy),
both Crown Castle and Equinix have a Zacks Rank #2 (Buy).
ADTRAN INC (ADTN): Free Stock Analysis Report
CALIX INC (CALX): Free Stock Analysis Report
CROWN CASTLE (CCI): Free Stock Analysis
EQUINIX INC (EQIX): Free Stock Analysis
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