ADTRAN, INC. REPORTS THIRD QUARTER 1997 RESULTS.HUNTSVILLE Huntsville, town, Canada Huntsville, town (1991 pop. 14,997), SE Ont., Canada, on the Muskoka River. It has lumber mills and a woodworking plant, but it is sustained mainly by its year-round tourist trade. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Oct. 14, 1997--ADTRAN, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADTN ADTN Administrative Data Transmission Network ADTN Administrative Data Telecommunications Network ) reported results for the third quarter and the first nine months ended September September: see month. 30, 1997. Sales for the quarter increased 12.7% to $70,578,975 from sales of $62,634,637 for the quarter ended September 30, 1996. Sales for the nine-month period ended September 30, 1997 were $190,934,367 compared to $180,484,338 for the same nine months of 1996. Sales for the third quarter increased 19.4% from the second quarter of 1997. Net income for the quarter increased 18.4% to $11,140,539 from net income of $9,405,557 for the quarter ended September 30, 1996. Net income for the nine month period ended September 30, 1997 was $27,643,082 compared to $28,369,165 for the same nine month period of 1996. Net income for the third quarter increased 59.6% from the second quarter of 1997. Earnings per share for the quarter increased to $.28 from $.24 reported for the third quarter of 1996. Earnings per share for the period ended September 30, 1997 were $.70 compared to $.72 for the same nine months of 1996. Commenting on the results, Mark C. Smith, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ADTRAN, stated, "We believe the third quarter confirmed a resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of more normal business activity in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. sector. For the second consecutive quarter, we experienced the highest quarterly revenue in the history of our CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment (Customer Premise PREMISE Productivity in Embedded Software Engineering of Electronics Based Equipment Equipment) business. We expect continued strength in this area with the introduction of our new Atlas Atlas, in Greek mythology Atlas (ăt`ləs), in Greek mythology, a Titan; son of Iapetus and Clymene and the brother of Prometheus. 800 Integrated Access family of products. In addition, revenues from our Telco business jumped 22% from the second quarter of 1997 boosted primarily by increased shipments of HDSL See DSL. HDSL - High bit-rate Digital Subscriber Line products. The long term demand for digital transmission products continues to grow, and we expect to fully participate in this growth by developing innovative new products while adding features, reducing the cost and improving the serviceability (system) serviceability - The ease with which corrective maintenance or preventative maintenance can be performed on a system (e.g. by a hardware service technician). Higher serviceability improves availability and reduces service cost. Serviceability is one component of RAS. of our existing products." With respect to product lines, Mr. Smith noted that HDSL/T1 revenues increased 47% from the prior year's third quarter. DDS/Frame Relay relay, electromechanical switch operated by a flow of electricity in one circuit and controlling the flow of electricity in another circuit. A relay consists basically of an electromagnet with a soft iron bar, called an armature, held close to it. revenues declined by 17% from the third quarter of 1996 and ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. revenues increased 6% from the third quarter of 1996. ADTRAN, Inc. designs, develops and markets a broad range of high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. digital transmission products utilized by Telcos, corporate end users, and OEMs to implement digital data service over existing telephone networks. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 1996. Such risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release. -0-
ADTRAN
Condensed Balance Sheet
September 30, 1997
Unaudited
Assets September 30,
1997
Cash & cash equivalents $27,082,564
Short-term investments 33,533,240
Accounts receivable 37,679,530
Other receivables 420,407
Inventory 46,618,219
Prepaid expenses 3,521,951
---------
Total current assets 148,855,911
Equipment (net) 26,506,754
Land 4,263,104
Bldg. & land improvements (net) 33,620,878
Other assets 200,000
Long term investments 50,000,000
----------
$263,446,647
------------
------------
Liabilities and stockholders' equity
Accounts payable $7,298,882
Accrued salaries 1,613,563
Accrued income taxes 835,452
Accrued taxes other than income taxes 339,374
Warranty payable 1,404,802
Accrued vacation 911,237
Interest payable 0
Other payables 788,205
-------
Total current liabilities 13,191,515
Long term liabilities 51,602,116
----------
Total liabilities 64,793,631
Stockholders' equity 198,653,016
-----------
$263,446,647
------------
------------
Condensed Statements of Income
For the quarters ending 9/30/97 and 9/30/96
Unaudited
Third Third
Quarter Quarter
1997 1996
---------------------------
Sales $70,578,975 $62,634,637
Cost of sales 34,486,972 32,930,249
---------- ----------
Gross profit 36,092,003 29,704,388
Selling, general and administrative
expenses 11,482,374 8,472,083
Research & development expenses 7,831,535 6,269,711
--------- ---------
Profit from operations 16,778,094 14,962,594
Interest expense (521,449) (219,597)
Other income (primarily interest) 1,150,447 643,159
--------- -------
Income before income taxes 17,407,092 15,386,156
Provision for income taxes (6,266,553) (5,980,599)
----------- -----------
Net income $11,140,539 $9,405,557
Weighted average common
and common equivalent shares
outstanding (1) 39,693,383 39,579,894
---------- ----------
---------- ----------
Net income per common and
common equivalent share (1) $0.28 $0.24
----- -----
----- -----
(1) Assumes exercise of dilutive stock options calculated under
the treasury stock method.
Condensed Statements of Income
For the periods ended September 30, 1997 and September 30, 1996
Unaudited
Nine Nine
Months Months
1997 1996
-----------------------------
Sales $190,934,367 $180,484,338
Cost of sales 94,418,912 95,352,361
---------- ----------
Gross profit 96,515,455 85,131,977
Selling, general and
administrative expenses 32,640,664 23,494,632
Research & development expenses 22,547,141 17,897,106
---------- ----------
Profit from operations 41,327,650 43,740,239
Interest expense (1,272,649) (666,467)
Other income (primarily interest) 3,137,314 1,722,446
--------- ---------
Income before income taxes 43,192,315 44,796,218
Provision for income taxes (15,549,233) (16,427,053)
------------ ------------
Net income $27,643,082 $28,369,165
----------- -----------
----------- -----------
Weighted average common and common
equivalent shares outstanding (1) 39,611,783 39,568,602
---------- ----------
---------- ----------
Net income per common and
common equivalent share (1) $0.70 $0.72
----- -----
----- -----
(1) Assumes exercise of dilutive stock options calculated
under the treasury stock method.
CONTACT: ADTRAN Inc., Huntsville John Cooper John Cooper can refer to:
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