Communication network solution provider ADTRAN
Inc. ( ADTN ) reported
better-than-expected first quarter of 2013 financial results, owing
to strong contributions from the carrier and enterprise divisions.
The results were positively impacted by an improved spending
atmosphere and increased strategic investment on the part of the
carrier customers of the company. ADTRAN currently has a Zacks Rank
Quarterly GAAP net income was $7.9 million or 13 cents per share
compared with a net income of $13 million or 20 cents per share in
the year-ago quarter. However, first quarter of 2013 adjusted
earnings per share were14 cents, significantly higher than the
Zacks Consensus Estimate of 8 cents per share.
The company reported quarterly total revenue of $143 million, up
6.1% year over year and slightly better than the Zacks Consensus
Estimate of $141 million.
Quarterly gross margin was 48.7% compared with 55% in the
prior-year quarter. Operating income registered a steep drop of
59.4% year over year to $6.6 million.
Quarterly operating margin was 6.8% compared with 14.9% 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 May 9 to shareholders of record as of Apr 25.
During the first quarter of 2013, ADTRAN generated $26.3 million
of cash from operation compared with $24.5 million in the year-ago
quarter. Free cash flow, in the reported quarter was $25.5 million
compared with $20.5 million in the prior-year quarter.
At the end of the first quarter of 2013, cash and marketable
securities were $247.9 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
Cisco Systems Inc. ( CSCO ),
Brocade Communications Systems Inc. ( BRCD ) and
Infinera Corp. ( INFN ). All these
stocks carry a Zacks Rank #2 (Buy).ADTRAN INC (ADTN): Free Stock Analysis ReportBROCADE COMM SY (BRCD): Free Stock Analysis
ReportCISCO SYSTEMS (CSCO): Free Stock Analysis
ReportINFINERA CORP (INFN): Free Stock Analysis
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