ADTRAN, Inc. Reports Third Quarter 1996 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. 7, 1996--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 both the third quarter and the first nine months ended September September: see month. 30, 1996. Sales for the quarter increased 30% to $62,634,637 from sales of $48,002,263 for the quarter ended September 30, 1995. Sales for the nine-month period ended Sept. 30, 1996 increased 37% to $180,484,338 from sales of $131,560,833 in the first nine months of 1995. Sales for the third quarter of 1996 decreased one percent from those of the second quarter of 1996. Net income for the quarter increased 21% to $9,405,557 from net income of $7,769,675 for the quarter ended September 30, 1995. Net income for the nine-month period ended September 30, 1996 increased 36% to $28,369,165 from net income of $20,891,784 in the prior comparable period. Net income for the third quarter decreased 9% from that of the second quarter of 1996. Earnings per share for the third quarter increased to $.24 from $.20 reported in the prior year and to $.72 from $.53 for the comparable nine-month period. Earnings per share for the third quarter decreased from $.26 reported for the second quarter 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, "Sales in the third quarter, while up 30% from the third quarter of 1995, were down from the record levels of the second quarter of 1996 primarily due to 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 a more normal level of growth in purchases of ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. products by telephone companies. In previously reporting on the second quarter, we had noted that we believed a portion of the unusually large ISDN revenue increase (35.2% first to second quarter) was caused by one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. factors and did not indicate a new long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth rate. Indications are that some ISDN purchases which normally would have occurred during the third quarter were instead accelerated into the second quarter. We expect future growth in ISDN sales to remain consistent with the normal trends experienced over the last two years." With respect to other product lines, Smith noted that HDSL/T1 shipments increased 46% from the prior year's third quarter and 16% from the second quarter of 1996. Comparable increases for 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. were 16% from the prior year's third quarter and 3% from the second quarter of 1996. International sales for the nine-month period amounted to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 7.3% of total sales, up from 5.0% in the comparable period of 1995. 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 Dec. 31, 1995, and in our quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended June June: see month. 30, 1996. Such risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.
ADTRAN, Inc.
Condensed Balance Sheet
Sept. 30, 1996
Unaudited
Assets
Cash & cash equivalents $ 33,819,943
Short-term investments 27,525,080
Accounts receivable 33,903,289
Other receivables 279,565
Inventory 43,046,156
Prepaid expenses 4,839,318
Total current assets 143,413,351
Equipment (net) 17,440,452
Land 4,263,104
Bldg. & land improvements (net) 28,229,842
-----------
$193,346,749
Liabilities and
stockholders' equity
Accounts payable $ 7,546,700
Accrued salaries 1,475,731
Accrued income taxes 0
Accrued taxes other than
income taxes 426,248
Warranty payable 648,027
Accrued vacation 689,352
Interest payable 56,089
Other payables 631,464
Total current liabilities 11,473,611
Long term liabilities 20,967,666
Total liabilities 32,441,277
Stockholders' equity 160,905,472
-----------
$193,346,749
Condensed Statements of Income
For the quarters ending 9/30/96 and 9/30/95
Unaudited
Third Quarter Third Quarter
1996 1995
Sales $62,634,637 $48,002,263
Cost of sales 32,930,249 24,554,375
Gross profit 29,704,388 23,447,888
Selling, general and
administrative expenses 8,472,083 7,071,049
Research & development
expenses 6,269,711 5,127,080
Profit from operations 14,962,594 11,249,759
Interest expense (219,597) (210,290)
Other income (primarily
interest) 643,159 882,696
Income before income
taxes 15,386,156 11,922,165
Provision for income
taxes (5,980,599) (4,152,490)
Net income $ 9,405,557 $ 7,769,675
Weighted average common and
common equivalent shares
outstanding (1) 39,579,894 39,518,679
Net income per common and
common equivalent share (1) $0.24 $0.20
(1) Assumes exercise of dilutive stock options calculated under
the treasury stock method.
Condensed Statements of Income
For the periods ended Sept. 30, 1996 and Sept. 30, 1995
Unaudited
Nine Months Nine Months
1996 1995
Sales $180,484,338 $131,560,833
Cost of sales 95,352,361 67,714,515
Gross profit 85,131,977 63,846,318
Selling, general and
administrative expenses 23,494,632 19,087,212
Research & development
expenses 17,897,106 13,995,328
Profit from operations 43,740,239 30,763,778
Interest expense (666,467) (857,785)
Other income (primarily
interest) 1,722,446 2,151,370
Income before income
taxes 44,796,218 32,057,363
Provision for
income taxes (16,427,053) (11,165,579)
Net income $ 28,369,165 $ 20,891,784
Weighted average common
and common equivalent
shares outstanding (1) 39,568,602 39,179,784
Net income per common
and common equivalent
share (1) $0.72 $0.53
(1) Assumes exercise of dilutive stock options calculated under
the treasury stock method.
CONTACT: ADTRAN, Inc., Huntsville John Cooper John Cooper can refer to:
Carol Nobles, 205/971-8211 |
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