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To: Johnny Canuck who wrote (42552)	7/20/2005 3:37:46 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69967

Adtran stock gains on strong results CEO Mark Smith, company's co-founder, to retire By Jeffry Bartash, MarketWatch Last Update: 5:44 PM ET July 19, 2005 E-mail it \| Print \| Alert \| Reprint \| WASHINGTON (MarketWatch) - Shares of Adtran Inc. rose more than 12% Tuesday after the supplier of high-speed networking gear posted stronger-than-expected profit in the second quarter and said it would raise its dividend. Free! Sign up here to receive our Internet Daily e-Newsletter! TRADING CENTER INFORMATION FOR ADTN: Create an alert for ADTN Add ADTN to my portfolio More cool charts on ADTN Discuss ADTN NEWS FOR ADTN Adtran stock gains on strong results Telecoms end higher, led by Adtran Telecoms end lower ahead of earnings More news for ADTN Quote & News Charts Financials Analysts Options SEC Filings TRACK THESE TOPICS My Portfolio Alerts Company: ADTRAN, Inc. Add Create Get breaking news sent directly to your in-box Create a Portfolio \| Create an Alert Separately, Adtran also said co-founder Mark Smith, the only CEO since the company was established, will retire Sept. 10, which marks his 65th birthday. Smith will remain non-executive chairman of the board. In addition, Chief Operating Officer Howard Thrailkill will retire, the company said. Thrailkill, also the president and a director on the board, has served as COO for 13 years. Adtran named Tom Stanton as Smith's successor, while Danny Windham will take over for Thrailkill. Both men are longtime Adtran executives. Adtran supplies products that enable phone companies to deliver DSL high-speed Internet service. The company offers hundreds of products to big phone carriers and to large corporations. Stanton is general manager of the division that sells products to phone companies. Windham runs the division that caters to corporate customers. On Tuesday, shares of Huntsville, Ala.-based Adtran (ADTN: news, chart, profile) gained $3.05 to $28.41. In the quarter ended June 30, Adtran earned $20.7 million, or 27 cents a share, compared with $21.4 million, or 26 cents, a year ago, the company said late Monday. Revenue fell slightly to $118.9 million from $120.6 million in the year-ago quarter, but it jumped almost 14% from the prior quarter's level of $104.6 million. Adtran's results exceeded the upwardly revised forecast of Wall Street analysts, who were expecting profit of 25 cents a share on revenue of $116 million, according to the consensus of analysts surveyed by Thomson First Call. Last month, Adtran raised its second-quarter forecast, saying demand was stronger than expected and that it took market share from rivals. The results represent a turnaround of sorts from the tail end of 2004, when Adtran warned of a temporary "pause" in sales. At the time, executives said some customers were delaying purchases until Adtran released a new and improved product line. Improved sales and profits compared with the prior quarter appear to suggest that the "pause" is over. "We believe these results reflect continuing momentum and share gains in the markets we serve," Smith said in a statement. In the wake of strong quarterly results, Adtran said it would raise its dividend to 9 cents a share from 8 cents, payable to holders of record at the close of trading on Aug. 5.