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To: Johnny Canuck who wrote (39912)	7/16/2003 3:40:29 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 72042

Adtran Sinks on Lower Outlook By Meredith Derby Staff Reporter 07/15/2003 01:19 PM EDT Updated from 9:08 a.m. EDT Telecommunications gearmaker Adtran (ADTN:Nasdaq - news - commentary - research - analysis) more than doubled its second-quarter earnings and topped analysts' estimates by 4 cents, thanks to increases in new product revenue and a jump in gross margins. Shares of the Huntsville, Ala.-based company rose 5.4% in Tuesday premarket trading on the news, but they were recently falling 12% to $51.50 after the company issued conservative third-quarter, fourth-quarter and full-year revenue guidance. The company now expects sales to be $92 million to $94 million in the upcoming quarters, while analysts are calling for $93.4 million in the third quarter and $101.1 million in the fourth quarter. Adtran sees $361 million to $365 million in revenue for the full year, compared with analysts' consensus forecast of $367.9 million. In the quarter ended June 30, the company earned $12.4 million, or 31 cents a share, compared with $5 million, or 13 cents a share, in the year-ago period. Analysts were expecting 27 cents a share. Pro forma earnings last year, which exclude an impairment charge, were $6.1 million, or 16 cents a share, the company said. Total sales rose to $90.4 million from $85.9 million last year. Gross margins were 54.9%, up from 48.5% in the second quarter last year. "We continue to observe sequential revenue increases in all new product areas comprised of DSLAMS, optical access products and access routers," said Chief Executive Mark Smith. The company also said it declared a special cash dividend of $2 and a quarterly cash dividend of 15 cents a share to be paid to shareholders of record at the close of business on July 31. The payment date is Aug. 29.