Looks like a meeting last Friday didn't go over to well. See the following news item posted @ Wall Street Journal. Note they still maintain BUY rating.
Dow Jones Newswires -- June 2, 1997
Adtran Down 8%; Sluggish 2Q Sales, Price Cuts Cited
By Shawn Young
NEW YORK (Dow Jones)--Shares of Adtran Inc. (ADTN) tumbled in heavy trading Monday as investors
became concerned about the company's second-quarter earnings, said analyst Greg Mesniaeff of
Robinson-Humphrey Co.
The shares, which have suffered recently because the company is involved in heavy price competition in part
of its business, dropped 4.9% Friday and another 2 3/16, or 8.2%, Monday to close at 24 9/16. Nasdaq volume
was 1.7 million, compared with average daily volume of 597,400.
Mesniaeff said the sharper fall started Friday as investors emerged from a meeting with Adtran officials with
the impression that second-quarter sales in the company's core business are turning out to be sluggish.
Adtran, Huntsville, Ala., makes digital communication equipment, which it sells to equipment manufacturers
and phone companies.
Adtran is seeking to increase its share of the high bit rate digital subscriber line, or HDSL, market by cutting
prices. Concern over pricing pressure has hurt Adtran's stock in recent weeks, said analysts at a number of
firms.
Mesniaeff said he also sees weakness, which he believes will be temporary, in the core ISDN and low-speed
digital data services aspects of Adtran's business.
Mesniaeff said he cut his second-quarter earnings estimate to 24 cents a share from 27 cents after the meeting.
He maintains a buy rating on the stock, he said.
In the year-ago second quarter the company earned $10.3 million, or 26 cents a share, on sales of $63.3 million.
Last year's per share figures are adjusted for a stock split in 1995.
A company spokeswoman said she knew of no reason for the drop in share price.
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