ADTRAN, Inc. Reports Third Quarter and Nine Month 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)--Oct. 15, 2001 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, 2001. Sales for the quarter were $95,513,000 compared to sales of $127,277,000 for the third quarter of 2000. Sales for the nine-month period ended September 30, 2001 were $297,987,000. Net income for the quarter was $4,950,000 compared to $21,403,000 for the third quarter of 2000. Net income for the first nine months of 2001 was $13,545,000. 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 $.13 (including $.02 attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a reduction of the estimated income tax rate for the year) compared to $.54 for the third quarter of 2000. Earnings per share for the first nine months of 2001 was $.35. Commenting on the results, ADTRAN Chairman and Chief Executive Officer Mark Smith stated, "Our estimates going into the third quarter were that business activity in our markets would be essentially flat with the second quarter. In substance, the estimates were correct with shipments remaining within the expected range. We remain profitable, even in the face of a difficult economy and slowness in the carrier market. I am pleased that our Enterprise Networks revenue grew 7.5% from the second quarter and that operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. have started to respond to our cost control efforts." Commenting further, Mr. Smith noted that cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments increased by $16.8 million while inventories were reduced by $14.8 million from the second quarter. He also noted that the Company's strong balance sheet and market positions enable ADTRAN to continue product development efforts during slowdowns, normally resulting in increased market share during recoveries. 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, 2000. 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
September 30, 2001
Unaudited
September 30
2001
------------
Assets
Cash & cash equivalents $107,145,382
Short-term investments 12,161,842
Accounts receivable 65,191,577
Other receivables 7,626,851
Inventory 72,131,820
Prepaid expenses 7,913,581
---------
Total current assets 272,171,053
Equipment (net) 47,559,644
Land 4,263,104
Bldg. & Land improvements (net) 70,815,903
Other assets 489,000
Long term investments 120,909,770
-----------
Totals $516,208,474
============
Liabilities and stockholders' equity
Accounts payable $9,444,958
Accrued salaries 5,132,077
Accrued income taxes -770,668
Accrued taxes other than income taxes 1,547,569
Warranty payable 1,519,945
Accrued vacation 2,320,843
Interest payable 142,083
Other payables 6,328,118
---------
Total current liabilities 25,664,925
Long term liabilities 57,922,227
----------
Total liabilities 83,587,152
Stockholders' equity 432,621,322
-----------
Totals $516,208,474
============
Condensed Statements of Income
For the periods ending 09/30/01 and 09/30/00
Third Quarter Third Quarter
2001 2000
----------- ------------
Sales $95,513,062 $127,276,696
Cost of Sales 53,114,239 61,323,706
---------- ----------
Gross Profit 42,398,823 65,952,990
Selling, general and
administrative expenses 22,120,077 22,967,418
Research and development expenses 15,180,334 12,766,314
---------- ----------
Profit from operations 5,098,412 30,219,258
Interest expense (461,458) (588,999)
Other income (primarily interest) 1,758,025 2,797,520
--------- ---------
Income before income taxes 6,394,979 32,427,779
Provision for income taxes (1,445,265) (11,025,205)
---------- -----------
Net income (1) $4,949,714 $21,402,574
========== ===========
Weighted average shares
outstanding assuming dilution 38,679,763 39,748,566
========== ==========
Earnings per common share
assuming dilution (2) $0.13 $0.54
===== =====
Earnings per common share $0.13 $0.55
===== =====
(1) The amounts above do not include a realized gain of
$84,040,000 resulting from the sale of marketable equity
securities. The inclusion of such gain would result in Net
Income of $76,869,000 for the Quarter ended September 30,
2000; earnings per common share, assuming dilution, of $1.93;
and earnings per common share of $1.99.
(2) Assumes exercise of dilutive stock options calculated under
the treasury stock method
Condensed Statements of Income
For the periods ending 09/30/01 and 09/30/00
Nine Months Nine Months
2001 2000
------------ ------------
Sales $297,986,682 $341,193,702
Cost of Sales 164,594,872 159,165,772
----------- -----------
Gross Profit 133,391,810 182,027,930
Selling, general and
administrative expenses 73,022,848 63,067,328
Research and development expenses 44,954,097 37,022,104
---------- ----------
Profit from operations 15,414,865 81,938,498
Interest expense (1,443,654) (1,741,667)
Other income (primarily interest) 5,447,036 5,932,258
--------- ---------
Income before income taxes 19,418,247 86,129,089
Provision for income taxes (5,873,176) (29,283,892)
---------- -----------
Net income (1) $13,545,071 $56,845,197
=========== ===========
Weighted average shares
outstanding assuming dilution 38,764,304 39,827,843
========== ==========
Earnings per common share
assuming dilution (2) $0.35 $1.43
===== =====
Earnings per common share $0.35 $1.47
===== =====
(1) The amounts above do not include a realized gain of
$84,040,000 resulting from the sale of marketable equity
securities. The inclusion of such gain would result in Net
Income of $112,312,000 for the nine months ended September 30,
2000; earnings per common share, assuming dilution, of $2.82;
and earnings per common share of $2.91.
(2) Assumes exercise of dilutive stock options calculated under
the treasury stock method
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