Adtran reports jump in income; raises guidance

Adtran today reported third-quarter sales of $149,170,000, up 25% compared to $118,873,000 for the second quarter of 2005 and up 29% compared to $115,251,000 for the third quarter of 2004. Net income for the quarter was $33 million compared to $20.7 million for the second quarter of 2005 and $18.75 million for the third quarter of 2004.

Additionally, the company revised its revenue guidance for the remainder of the year to a range of $512 million to $516 million. About six weeks ago, Adtran revised its previous guidance up, but said it was experiencing strong growth in many areas including DSL access multiplexers and optical equipment. However, the company did say it expects fourth-quarter revenue to be down slightly in part due to the strength of Q2 and Q3.

“We saw tremendous growth from Q2 to Q3,” Adtran CEO Tom Stanton said during a call with investors and analysts. “To plan for growth behind that is a little aggressive.”

On an earnings-per-share basis, the company reported 42 cents for the third quarter, up 56% compared to 27 cents for the second quarter of 2005. For the full year, the company expects EPS in the range of $1.26 to $1.28.

In the access market, Stanton said Adtran was getting good traction from carriers deploying DSLAMs outside of the central office. However, because that market is relatively new, he wasn’t able to get a good read on how well it would continue through the rest of the year.

“That’s one I can’t tell you seasonality on, because it didn’t exist two years ago.”