ADTRAN, Inc. Reports First Quarter 2003 Results.Business Editors 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 15, 2003 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 first quarter ended March 31, 2003. Sales were $86,223,000 for the quarter compared to $83,342,000 for the first quarter of 2002. Net income increased 143% to $10,541,000 for the quarter compared to $4,341,000 for the first quarter of 2002. 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. , were $0.27 for the quarter compared to $0.11 for the first quarter of 2002. Gross margins were 54.6% for the quarter compared to 47.2% in the first quarter of 2002. Net cash provided by operating activities totaled $12 million for the quarter. Cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has , net of debt, totaled $286 million at quarter-end. ADTRAN Chairman and Chief Executive Officer Mark Smith stated, "Our increase in revenue over the prior year's first quarter was the result of new product sales and market share expansion of existing products. Access routers See edge router and remote access router. , DSLAMS and optical access products broaden our product portfolio. This commitment to new product development augmented by our financial strength and strong operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. continues to strengthen our competitive posture posture /pos·ture/ (pos´choor) the attitude of the body.pos´tural pos·ture n. 1. A position of the body or of body parts. 2. , particularly during a very difficult market environment. Continued concerns over geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. proceedings and the economy may persist to dampen customer spending decisions; however, we remain confident of continued market share gains in current and new markets during this time of uncertainty, and beyond." There will be a conference call today at 10:30 a.m. Eastern Time to discuss our first quarter 2003 financial results. To listen to the webcast of this conference call, visit our Investor Relations Investor relations The process by which the corporation communicates with its investors. page at http://www.adtran.com approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10 minutes before the start of the call and click on the conference call link provided. As indicated in our press release of April 7, 2003, an online replay of the webcast of the conference call, as well as the text of this release, will also be available on the Investor Relations page of our website at http://www.adtran.com for at least 12 months following the date of this release. ADTRAN, Inc. is an established supplier of advanced transmission products that provide users access to today's expansive telecommunications networks A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. . Widely deployed in carrier, enterprise and global networks worldwide, ADTRAN products support all major digital access technologies. ADTRAN equipment is widely deployed by major Incumbent Local Exchange Carriers ILEC, short for incumbent local exchange carrier, is a local telephone company in the United States that was in existence at the time of the break up of AT&T into the Regional Bell Operating Companies (RBOCs) also known as the "Baby Bells". , Inter-exchange Carriers (communications) inter-exchange carrier - (IXC) A company allowed to handle long-distance calls following the break-up of the Bell system in the US by anti-trust regulators. , ISPs, Competitive Service Providers, international service providers, public and private enterprises, and original equipment manufacturers. 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, 2002. Such risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.
Condensed Balance Sheet
March 31, 2003
Unaudited
(Dollars in thousands)
March 31,
2003
-----------
Assets
Cash & cash equivalents $ 138,678
Short-term investments $ 39,566
Accounts receivable (net) $ 49,232
Other receivables $ 4,252
Inventory (net) $ 37,382
Prepaid expenses and other current assets $ 6,414
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Total current assets $ 275,524
Equipment (net) $ 31,765
Land $ 4,263
Bldg. & land improvements (net) $ 67,224
Other assets $ 486
Deferred tax assets $ 4,836
Long- term investments $ 158,865
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Totals $ 542,963
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Liabilities and stockholders' equity
Accounts payable $ 19,949
Accrued wages and benefits $ 8,514
Accrued income taxes $ 6,133
Accrued liabilities $ 2,274
-----------
Total current liabilities $ 36,870
Deferred tax liabilities $ 5,146
Long term debt $ 50,000
Total long term liabilities $ 55,146
-----------
Total liabilities $ 92,016
Stockholders' equity $ 450,947
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Totals $ 542,963
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Condensed Statements of Income
For the periods ending 3/31/03 and 3/31/02
Unaudited
(Dollars in thousands)
First First
Quarter Quarter
2003 2002
----------- -----------
Sales $ 86,223 $ 83,342
Cost of Sales $ 39,149 $ 43,983
----------- -----------
Gross Profit $ 47,074 $ 39,359
Selling, general and administrative
expenses $ 20,152 $ 20,790
Research and development expenses $ 14,271 $ 13,834
Profit from operations $ 12,651 $ 4,735
Interest expense ($660) ($690)
Other income (primarily interest) $ 2,854 $ 1,984
----------- -----------
Income before income taxes $ 14,845 $ 6,029
Provision for income taxes ($4,306) ($1,688)
Net income $ 10,539 $ 4,341
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Weighted average shares outstanding
assuming dilution 38,961,790 38,760,293
Earnings per common share assuming
dilution (1) $ 0.27 $ 0.11
Earnings per common shares $ 0.28 $ 0.11
(1) Assumes exercise of dilutive stock options calculated under the
treasury stock method
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