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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (44726)	4/15/2008 2:47:27 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68603

Adtran's Earnings Meet Targets 04/15/08 - 12:37 PM EDT ADTN ALU CSCO (The Telecom Connection PICK) NT Robert Holmes * Futuristic Gear for a Well-Dressed Desk * No-Noise Headphones Make Business Trips More Tolerable * Oops-Proof Computer for the Road * * Article Tools * Email this Article * Print this Article * Rss Feed * Del.icio.us * Digg * Facebook * StumbleUpon * Twitter * * PLAY BEAT THE STREET GAME NOW * Be the First Member to Recommend this article Recommend it Communications network-equipment maker Adtran (ADTN - Cramer's Take - Stockpickr) reported a first quarter that was in line with estimates, helped by a surge in sales for its broadband access gear. Along with the announcement of a share buyback and a new cash dividend, shares of Adtran were up by 7%. The Huntsville, Ala., company posted a first-quarter profit of $17 million, or 26 cents a share, compared with year-ago earnings of $16.9 million, or 24 cents a share. Analysts were expecting Adtran to earn 26 cents a share, according to Thomson First Call. Revenue, however, jumped 9% to $119.9 million from a year ago, coming in ahead of the $116 million target analysts were expecting. The increase came as sales for broadband access equipment rose 57% from a year ago. "Momentum in our growth businesses overcame typical seasonality and a tepid enterprise spending environment," said Adtran CEO Tom Stanton in a statement. "We believe recent trends in these businesses provide early indications of the success we anticipate in these new markets." Adtran also said that the provision for income taxes in the first quarter was unusually high due to delays in federal legislation required to extend research tax credits for the 2008 year. Additionally, the company's board authorized a stock repurchase of 5 million shares upon completion of the current stock buyback. The company said it has repurchased a total of 18.5 million shares since the beginning of 2004. The board also declared a quarterly cash dividend for the first quarter of 2008 of 9 cents a share, to be paid to holders of record at the close of business on May 1. Shares of Adtran were lately up $1.34, or 7%, to $20.43. By comparison, rival Nortel (NT - Cramer's Take - Stockpickr) was losing 1.3% to $6.84, Alcatel-Lucent (ALU - Cramer's Take - Stockpickr) was down 1% to $5.81, and Cisco (CSCO - Cramer's Take - Stockpickr) was off 0.5% to $23.20. P.S. You could win up to $5000 every week with Beat the Street. Play Beat the Street, the all-new edition of the fantasy trading game from TheStreet.com. When you do, you could be the big winner every week — up to $60,000 in cash prizes. Hurry and register now so you're sure to be in the game when it begins. Play Beat the Street! [Harry; ADTN is a book and ship business and is cyclical Q-Q. I am not sure why the miss on EPS is being discounted in favour of the 9 percent better than expected revenue numbers. There must have been some comment on better gross margins going forward. Personally I am waiting for the INTC call before taking tech positions.]