I'd just begun researching Adtran a couple days ago. Most of the ISDN related companies are reporting good earnings. Adtran yesterday reported that sales for 4th quarter 1995 were up 37% over a year ago primarily because of sales of their ISDN products. "For the year, revenues increased 47 percent to $181.5 million, up
from $123.4 million for the prior year. Profits for the year increased to 58 percent to $29.5 million for 1995, up from $18.6 million the prior year."
And yet, today the share price tanked, down 4 points? Like SIII, good earnings report, but downgraded by analyst and down it went.
So there must be more to the story on Adtran. There are clearly new technologies coming along that will eventually supplant ISDN, but it is beginning to seem that ISDN has just caught the fancy of enough folks (it is getting a lot of press play, with articles popping up everywhere in the popular media), and there are enough obstacles to quick implementation of cable modems and ADSL, that ISDN may have a couple robust seasons before heading out to pasture. I was going to sell my Gandalf shares, but now I'm thinking twice about it.
Bob |
