ADTRAN, Inc. Reports First Quarter 1999 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)--April 14, 1999-- ADTRAN, Inc. (Nasdaq:ADTN ADTN Administrative Data Transmission Network ADTN Administrative Data Telecommunications Network ) reported results for the first quarter of 1999. Sales for the first quarter increased 18.1% to $77,163,000 from sales of $65,327,000 for the quarter ended March 31, 1998. Net income for the quarter was $9,111,000 compared to $9,893,000 for the quarter ended March 31, 1998. Earnings per share, assuming dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. , was $0.24 compared to $0.25 for 1998. Commenting on the results, Mark C. Smith, Chairman and Chief Executive Officer, stated, "We are pleased with the revenue growth in both of our major markets compared to 1998. Carrier Network sales increased 17.1% year to year driven by our increased HDSL See DSL. HDSL - High bit-rate Digital Subscriber Line activity. HDSL sales grew 35% year to year and 23% from the fourth quarter of 1998. Enterprise Network sales grew 19.8% from the first quarter of 1998 driven by T1 and ATLAS performance." Addressing overall operating trends, Mr. Smith noted that "During 1998 selling, general and administrative expenses as well as research and development expenditures increased substantially as the company pursued new revenue opportunities. Fortunately, a number of these goals have been attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. and these expenditures have stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. allowing gross margins to return to more normal levels in line with our long term strategy of preserving market share." 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, 1998. Such risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release. -0-
Condensed Balance Sheet
March 31, 1999
Unaudited
Assets
Cash & cash equivalents $ 36,574,151
Short-term investments 28,547,550
Accounts receivable 48,643,334
Other receivables 912,783
Inventory 55,149,436
Prepaid expenses 4,243,433
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Total current assets 174,070,687
Equipment (net) 30,644,407
Land 4,263,104
Bldg. & land improvements (net) 50,965,402
Other assets 220,000
Long-term investments 55,728,963
------------
$315,892,563
============
Liabilities and stockholders equity
Accounts payable $ 8,589,569
Accrued salaries 2,956,443
Accrued income taxes 5,800,876
Accrued taxes other than
income taxes 304,861
Warranty payable 1,519,945
Accrued vacation 1,523,974
Interest payable 0
Other payables 1,711,633
------------
Total current liabilities 22,407,301
Long-term liabilities 53,295,140
------------
Total liabilities 75,702,441
Stockholders equity 240,190,122
------------
$315,892,563
============
Condensed Statements of Income
For the quarters ending 3/31/99 and 3/31/98
Unaudited
First First
Quarter Quarter
1999 1998
---- ----
Sales $ 77,162,648 $ 65,327,234
Cost of sales 37,668,543 29,408,537
------------ ------------
Gross profit 39,494,105 35,918,697
Selling, general and
administrative expenses 16,594,352 13,257,590
Research & development
expenses 9,673,687 8,378,356
------------ ------------
Profit from operations 13,226,066 14,282,751
Interest expense (570,000) (534,428)
Other income (primarily
interest) 1,043,938 1,354,960
------------ ------------
Income before income taxes 13,700,004 15,103,283
Provision for income taxes (4,589,501) (5,210,633)
------------ ------------
Net income $ 9,110,503 $ 9,892,650
============ ============
Weighted average shares
outstanding
assuming dilution(1) 38,447,082 39,538,761
Earnings per common share
assuming $ 0.24 $ 0.25
dilution(1)
Earnings per common share $ 0.24 $ 0.25
(1) Assumes exercise of dilutive stock options calculated under the
treasury stock method.
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