Communication network solution provider,
), reported robust third-quarter 2013 financial results on strong
contributions from its Internetworking and Broadband Access
product divisions. The results were supported by an improved
spending atmosphere and increased strategic investment by its
carrier and enterprise customers. International business
generated record high revenues. ADTRAN also benefits from lower
In the third quarter of 2013, GAAP net income was $16.2
million or 28 cents per share compared with $9.3 million or 15
cents per share in the year-ago quarter. However, quarterly
adjusted earnings per share were 29 cents, significantly above
the Zacks Consensus Estimate of 22 cents. The company reported
quarterly total revenue of $177.4 million, up 9.4% year over
year, outpacing the Zacks Consensus Estimate of $174 million.
Quarterly gross margin was 46.5% compared with 49.7% in the
prior-year quarter. However, operating income registered a steep
year-over-year rise of 67.5% to $17.2 million. Quarterly
operating margin was 9.7% against 6.3% 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 Nov
7 to shareholders of record as of Oct 24.
During the first nine months of 2013, ADTRAN generated $52
million of cash from operations compared with $64.8 million in
the year-ago period. Free cash flow, in the reported period, was
$45.5 million compared with $54 million in the prior-year
quarter. At the end of the third quarter of 2013, cash and
marketable securities were $191 million compared with $228.9
million at the end of 2012. Total debt, at the end of the
reported quarter, was $46 million, remaining flat with the figure
reported at the end of 2012.
Other Stocks to Consider
ADTRAN currently has a Zacks Rank #3 (Hold). Other stocks in
this industry that warrant a look includes
). All these stocks currently carry a Zacks Rank #2 (Buy).
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