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

To: Johnny Canuck who wrote (47711)	4/11/2012 1:42:23 PM
From: Johnny Canuck	Respond to of 69810

ADTRAN Inc. Earnings: Revenue and Profit Decline By Derek Hoffman April 11 2012 ADTRAN Inc. ( NASDAQ:ADTN) posted a decrease in profit as revenue declined. Adtran designs, manufactures, markets, and services network access solutions for communications networks. Investing Insights: What’s the Future of Microsoft’s Stock? ADTRAN Earnings Cheat Sheet for the First Quarter Results: Net income for ADTRAN Inc. fell to $13 million (20 cents per share) vs. $34.3 million (52 cents per share) a year earlier. This is a decline of 62.2% from the year-earlier quarter. Revenue: Fell 18.6% to $134.7 million from the year-earlier quarter. Actual vs. Wall St. Expectations: ADTRAN Inc. reported adjusted net income of 25 cents per share. By that measure, the company beat the mean estimate of 20 cents per share. Analysts were expecting revenue of $134.4 million. Quoting Management: ADTRAN Chief Executive Officer Tom Stanton stated, “As expected, we saw an improvement late in the quarter after a slower than normal start in carrier spending. As a result of this slow start, Broadband Access revenues for the quarter were $49.5 million, in range with the same period last year. Our Internetworking category saw another strong performance with revenues of $41.0 million, an increase of 25% from the same period last year. Revenues for our core product areas in total for the quarter were $104.7 million, basically flat compared to the same period last year. Although the quarter did not meet our initial expectations, we believe the issues relate to timing, not market positioning, and that our strategic areas of focus are well aligned with global market trends and will provide long term growth for our company.” Key Stats: A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter of the last fiscal year, which saw revenue rise 30.3%. The company’s net income has fallen in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 13.3% from the year-earlier quarter. The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 48 cents versus a mean estimate of net income of 46 cents per share. The company’s cost of sales slipped to $60.6 million, a dip of 40.3% from a year ago. Last quarter, cost of sales was 45% of revenue versus 40.3% a year earlier. Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 57 cents a share to 44 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $2.27 a share to $1.75 over the last ninety days. Competitors to Watch: Calix, Inc., Cisco Systems, Inc., Tellabs, Inc., Alcatel-Lucent, Telefonaktiebolaget LM Ericsson, Sycamore Networks, Inc., Juniper Networks, Inc., Ciena Corporation, Extreme Networks, Inc, and Westell Technologies Inc. (Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)