ADTRAN (News - Alert) this week at its CONNECT 2010 Press & Analyst Event in Huntsville, Ala., is telling the story of how it has not just survived, but thrived, during the tumultuous economy.
Chairman and CEO Tom Stanton said the company, which was able to increase its headcount despite the downturn, has had a great year. ADTRAN in the third quarter of 2010 reported a sales increase of 27 percent, to a record level of nearly $163 million; operating income increase 56 percent to more than $45 million; and net income increase 49 percent to more than $32 million. These increases are as compared with ADTRAN’s performance in the third quarter of 2009.
Rich Schansman, senior vice president and general manager for ADTRAN’s enterprise networks division, said that the company has seen growth across all channels and all products.
Schansman also mentioned that the enterprise networks division has been able to leverage ADTRAN’s strong position with service providers to make its mark in the enterprise space. Service providers, he explained, were able to build credibly for ADTRAN products in the enterprise space by getting that gear into enterprise installations as part of managed service offerings.
Stanton added that now ADTRAN is putting more focus on getting its routers and other enterprise gear into business-owned networks via its value-added reseller channel partners. Over the last four quarters, Stanton added, its VAR base has grown revenue. And in the last 24 months ADTRAN is getting a lot of traction for its end-to-end Ethernet solutions that leverage both its Total Access 5000 solution and NetVanta routers, which together enable support for SLAs.
ADTRAN has long been strong player in the service provider space in the U.S., and its numbers are good across tier 1, 2 and 3 service providers. Looking forward, ADTRAN also hopes to expand its efforts abroad, said Stanton. He said historically about 5 to 7 percent of ADTRAN revenues have come from outside of the U.S.
That will be the case again this year, he said, but “we fully expect that to change next year.” Europe and Latin America are the biggest opportunities for ADTRAN abroad, according to Stanton, but the company is also working in Asia.
Edited by Stefanie Mosca