Adtran, Inc. reports first quarter 1997 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)--April 15, 1997--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 of 1997. Sales for the quarter increased 12% to $61,230,184 from sales of $54,544,441 for the quarter ended March 31, 1996. Net income for the quarter increased 10% to $9,522,269 from net income of $8,623,388 for the quarter ended March 31, 1996. Earnings per share increased to $.24 from $.22. A highlight of the quarter was ADTRAN's selection, from among more than 1,000 vendors, as Supplier of the Year by GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) , the Company's largest customer. The Company released a preliminary estimate of revenues and earnings for the quarter on April 1, 1997. Commenting on the final amounts, Mark C. Smith, Chairman and Chief Executive Officer of ADTRAN, noted that, as indicated in the preliminary release, the early portion of the quarter was characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by slowness in most market segments. He stated that, "Recent weeks have seen a return to more normal order patterns, and we expect activity to continue to pick up as the second quarter progresses." With respect to product lines, Mr. Smith indicated that, consistent with trends noted by other companies involved in the networking sector, 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. revenues were down 15.2% from the first quarter of last year. ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. revenues increased 14.9% while HDSL/T1 shipments were up 39.3% from the first quarter of 1996. With respect to the HDSL/T1 area, Mr. Smith stated that, "We do not believe that the pace of activity in these products during the first quarter reflected any fundamental change in 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. demand. There has been no significant change in our customer base; therefore, we believe that the relative slowness in the first quarter was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to nothing more than inventory levels 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. buying patterns of our customers. With continuing quality and cost improvements, our expectations for the future are high." In conclusion, Mr. Smith noted that, "We are particularly pleased that our Total Reach product is now available in commercial quantities. One significant order announcement has been made, and we see significant interest in this product (and ISDN service in general) throughout our Telco customer base." 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, 1996. Such risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release. -0-
ADTRAN, Inc.
Condensed Balance Sheet
March 31, 1997
Unaudited
Assets
Cash & cash equivalents $ 49,542,844
Short-term investments 30,550,210
Accounts receivable 32,704,720
Other receivables 295,595
Inventory 48,082,345
Prepaid expenses 3,564,129
------------
Total current assets 164,739,843
Equipment (net) 22,647,119
Land 4,263,104
Bldg. & land improvements (net) 32,869,260
------------
$224,519,326
------------
Liabilities and stockholders' equity
Accounts payable $ 9,738,619
Accrued salaries 1,494,429
Accrued income taxes 5,609,550
Accrued taxes other than income taxes 337,318
Warranty payable 1,026,156
Accrued vacation 859,804
Interest payable 59,594
Other payables 1,170,492
------------
Total current liabilities 20,295,962
Long term liabilities 21,602,116
------------
Total liabilities 41,898,078
Stockholders' equity 182,621,248
------------
$224,519,326
------------
Condensed Statements of Income
For the quarters ending 3/31/97 and 3/31/96
Unaudited
First Quarter First Quarter
1997 1996
------------- -------------
Sales $61,230,184 $54,544,441
Cost of sales 29,438,797 28,809,326
----------- -----------
Gross profit 31,791,387 25,735,115
Selling, general and
administrative expenses 10,537,516 7,257,687
Research & development
expenses 6,995,257 5,501,374
----------- -----------
Profit from operations 14,258,614 12,976,054
Interest expense (242,534) (280,036)
Other income (primarily
interest) 862,465 411,427
----------- -----------
Income before income
taxes 14,878,545 13,107,445
Provision for income
taxes (5,356,276) (4,484,057)
------------ ------------
Net income $ 9,522,269 $ 8,623,388
----------- -----------
Weighted average common and
common equivalent shares
outstanding (1) 39,557,130 39,549,106
----------- -----------
Net income per common and
common equivalent share $0.24 $0.22
------ ------
(1) Assumes exercise of dilutive stock options calculated under
the treasury stock method.
CONTACT: ADTRAN, Inc., Huntsville John Cooper John Cooper can refer to:
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