ADTRAN, Inc. Reports Second 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)--July 14, 1999-- ADTRAN, Inc. (Nasdaq:ADTN ADTN Administrative Data Transmission Network ADTN Administrative Data Telecommunications Network ) reported results for both the second quarter and the first six months ended June June: see month. 30, 1999. Sales for the quarter increased 24% to $88,507,000 from sales of $71,155,000 for the quarter ended June 30, 1998. Sales for the six-month period ended June 30, 1999 increased 21% to $165,670,000 compared to sales of $136,483,000 for the first six months of 1998. Net income for the quarter increased 5.6% to $10,716,000 from net income of $10,145,000 for the quarter ended June 30, 1998. Net income for the first six months of 1999 was $19,827,000 compared to net income of $20,038,000 for the first six months of 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. , for the second quarter increased eight percent to $0.28 compared to earnings per share of $0.26 for the second quarter of 1998. Commenting on the results, ADTRAN Chairman and Chief Executive Officer Mark C. Smith stated, "Our business was brisk Brisk as a proper name may refer to:
HDSL - High bit-rate Digital Subscriber Line market is bearing fruit. During the second half of the year, as our 6th Generation product begins to ship, we expect to see improved gross margins in this part of our business as well as continuing sales growth. Our market share gains over the past two years also mean that we are well positioned for the transition to HDSL2 by our customers. Enterprise Networks began a rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective during the quarter and sales were up over eight percent from the first quarter." Looking to the remainder of the year, Mr. Smith noted that "We are excited about prospects for the Company in the second half of 1999 due to continuing HDSL activity, introduction of the Total Access(TM) - 750 for the CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs) market, and the wide acceptance and deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. of our Total Reach(R) technology." 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
June 30, 1999
Unaudited
June 30,
1999
------------
Assets
Cash & cash equivalents $ 37,599,951
Short-term investments 24,132,108
Accounts receivable 61,247,914
Other receivables 1,476,173
Inventory 55,448,469
Prepaid expenses 3,934,535
------------
Total current assets 183,839,150
Equipment (net) 29,306,091
Land 4,263,104
Bldg. & Land improvements (net) 59,624,312
Other assets 220,000
Long term investments 55,734,945
------------
Totals $332,987,602
============
Liabilities and stockholders' equity
Accounts payable $ 16,441,354
Accrued salaries 4,502,326
Accrued income taxes 2,710,999
Accrued taxes other than income taxes 477,604
Warranty payable 1,519,945
Accrued vacation 1,594,900
Interest payable 0
Other payables 1,487,205
------------
Total current liabilities 28,734,334
Long term liabilities 53,295,140
Total liabilities 82,029,474
Stockholders' equity 250,958,127
-----------
Totals $332,987,602
============
Condensed Statements of Income
For the periods ending 06/30/99 and 06/30/98
Second Quarter Second Quarter
1999 1998
------------ ------------
Sales $ 88,506,872 $ 71,155,452
Cost of Sales 45,151,016 32,205,894
------------ ------------
Gross Profit 43,355,856 38,949,558
Selling, general and
administrative expenses 17,463,138 15,064,329
Research and development expenses 10,362,428 9,443,911
------------ ------------
Profit from operations 15,530,290 14,441,318
Interest expense (576,333) (576,333)
Other income (primarily interest) 1,160,678 1,506,073
------------ ------------
Income before income taxes 16,114,634 15,371,057
Provision for income taxes (5,398,403) (5,226,160)
------------ ------------
Net income $ 10,716,232 $ 10,144,898
============ ============
Weighted average shares
outstanding assuming dilution 38,552,383 39,431,601
============ ============
Earnings per common share
assuming dilution (1) $ 0.28 $ 0.26
============ ============
Earnings per common share $ 0.28 $ 0.26
============ ============
(1) Assumes exercise of dilutive stock options calculated under the
treasury stock method
Condensed Statements of Income
For the periods ending 06/30/99 and 06/30/98
First Half First Half
1999 1998
------------- -------------
Sales $ 165,669,520 $ 136,482,686
Cost of Sales 82,635,552 61,614,431
------------- -------------
Gross Profit 83,033,968 74,868,255
Selling, general and
administrative expenses 34,218,521 28,321,919
Research and development expenses 20,059,091 17,822,267
------------- -------------
Profit from operations 28,756,356 28,724,069
Interest expense (1,146,333) (1,110,761)
Other income (primarily interest) 2,204,616 2,861,033
------------- -------------
Income before income taxes 29,814,639 30,474,341
Provision for income taxes (9,987,904) (10,436,792)
------------- -------------
Net income $ 19,826,735 $ 20,037,549
============= =============
Weighted average shares
outstanding assuming dilution 38,552,383 39,500,980
============= =============
Earnings per common share
assuming dilution (1) $ 0.51 $ 0.51
============= =============
Earnings per common share $ 0.52 $ 0.51
============= =============
(1) Assumes exercise of dilutive stock options calculated under the
treasury stock method
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