ADTRAN, Inc. Reports Year and Fourth Quarter 2004 Results and Declares Quarterly Cash Dividend.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. . -- 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 year and fourth quarter ended December December: see month. 31, 2004. Sales increased 15% to $454,805,000 for the year compared to $396,676,000 for 2003, and net income increased 23% to $75,403,000 for the year compared to $61,515,000 for 2003. 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 $0.93 for the year compared to $0.76 for 2003. Sales were $104,913,000 for the fourth quarter compared to $113,815,000 for the fourth quarter of 2003. Net income was $14,856,000 for the fourth quarter compared to $21,432,000 for the fourth quarter of 2003. Earnings per share, assuming dilution, were $0.19 for the quarter compared to $0.26 for the fourth quarter of 2003. Net cash provided by operating activities totaled $86 million for the year and $27 million for the fourth quarter. ADTRAN Chairman and Chief Executive Officer Mark Smith stated, "During 2004, we continued to escalate es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. our positions in new, significantly larger markets, in addition to solidifying so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our leadership positions within our traditional markets. After experiencing significant revenue growth since 2002, we saw a pause in our markets in the last half of 2004. We anticipate this pause will resolve itself as employment and IT spending continue to expand and as carriers continue to aggressively promote consumer broadband services See broadband and broadband service provider. ." Mr. Smith also stated, "During the quarter, research and development expenses increased $2.6 million compared to the same quarter in 2003. A significant portion of this increase relates to approval activities for optical access products and acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. of approval activities as a result of recent DSLAM (DSL Access Multiplexor) A central office (CO) device for ADSL service that intermixes voice traffic and DSL traffic onto a customer's DSL line. It also separates incoming phone and data signals and directs them onto the appropriate carrier's network. See DSL. successes." The Company also announced that its Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a cash dividend for the seventh consecutive quarter. The quarterly cash dividend is $0.08 per common share to be paid to holders of record at the close of business on February February: see month. 4, 2005. The ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. is February 2, 2005 and the payment date is February 16, 2005. The Company also confirmed that its fourth quarter conference call will be held Tuesday Tuesday: see week. , January January: see month. 25 at 9:30 a.m. Central Time. Guidance for the first quarter and full year 2005 will be issued during this conference call. This conference call will be webcast live through StreetEvents.com. To listen, simply visit the Investor Relations Investor relations The process by which the corporation communicates with its investors. site at http://www.adtran.com or http://streetevents.com approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10 minutes prior to the start of the call and click on the conference call link provided. An online replay of the conference call will be available for seven days at http://streetevents.com. In addition, an online replay of the conference call, as well as the text of the Company's earnings release, will be available on the Investor Relations site at http://www.adtran.com for at least 12 months following the call. ADTRAN, Inc. is one of the world's most successful network access equipment suppliers, with a 16-year history of profitability and a portfolio of more than 1,300 solutions for use in the last mile of today's 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 by both carriers and enterprises, ADTRAN solutions enable voice, data, video, and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the communications across copper, fiber, and wireless network infrastructures. ADTRAN solutions are currently in use by every major domestic service provider and many international ones, as well as by thousands of public, private and government organizations worldwide. 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 31, 2003. Such risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.
Condensed Statements of Income
For the periods ending 12/31/04 and 12/31/03
(In thousands, except per share data)
Unaudited
Year Ended Year Ended
2004 2003
----------- -----------
Sales $454,805 $396,676
Cost of Sales $193,458 $174,681
----------- -----------
Gross Profit $261,347 $221,995
Selling, general and administrative expenses $91,832 $83,234
Research and development expenses $67,371 $58,144
----------- -----------
Profit from operations $102,144 $80,617
Interest expense ($2,542) ($2,534)
Other income (primarily interest) $10,797 $10,747
----------- -----------
Income before provision for income taxes $110,399 $88,830
Provision for income taxes ($34,996) ($27,315)
----------- -----------
Net income $75,403 $61,515
=========== ===========
Weighted average shares
Basic 78,235 76,942
Diluted (1) 80,984 80,739
Earnings per common share
Basic $0.96 $0.80
Diluted (1) $0.93 $0.76
(1) Assumes exercise of dilutive stock options calculated under
the treasury stock method.
Condensed Statements of Income
For the quarters ending 12/31/04 and 12/31/03
(In thousands, except per share data)
Unaudited
Fourth Fourth
Quarter Quarter
2004 2003
----------- -----------
Sales $104,913 $113,815
Cost of Sales $45,658 $47,511
----------- -----------
Gross Profit $59,255 $66,304
Selling, general and administrative expenses $23,382 $22,109
Research and development expenses $17,799 $15,246
----------- -----------
Profit from operations $18,074 $28,949
Interest expense ($610) ($583)
Other income (primarily interest) $3,764 $1,949
----------- -----------
Income before provision for income taxes $21,228 $30,315
Provision for income taxes ($6,372) ($8,883)
----------- -----------
Net income $14,856 $21,432
=========== ===========
Weighted average shares
Basic 76,587 79,054
Diluted (1) 78,725 82,588
Earnings per common share
Basic $0.19 $0.27
Diluted (1) $0.19 $0.26
(1) Assumes exercise of dilutive stock options calculated
under the treasury stock method.
Condensed Balance Sheet
December 31, 2004
Unaudited
(In thousands)
December 31,
2004
--------------
Assets
Cash & cash equivalents $150,984
Short-term investments $31,449
Accounts receivable (net) $63,729
Other receivables $4,335
Income tax receivables $2,321
Inventory (net) $42,283
Prepaid expenses and other current assets $7,200
--------------
Total current assets $302,301
Equipment (net) $22,174
Land $4,263
Bldg. & land improvements (net) $62,818
Other assets $586
Long-term investments $167,609
--------------
Total long-term assets $257,450
Total assets $559,751
==============
Liabilities and stockholders' equity
Accounts payable $22,856
Accrued wages and benefits $8,347
Accrued liabilities $5,092
--------------
Total current liabilities $36,295
Deferred tax liabilities $4,825
Other non-current liabilties $1,732
Long term-debt $50,000
--------------
Total long-term liabilities $56,557
Total liabilities $92,852
Stockholders' equity $466,899
--------------
Total liabilities and stockholders' equity $559,751
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