Adtran, Inc. provider of networking and communications equipment had a very successful fourth quarter according to reports. Tuesday, the company announced that its profit for the quarter nearly doubled from last year, increased by 33 percent sales growth, revenues that topped analysts' expectations.
Adtran’s reported net income of $35.96 million or $0.56 per share for the fourth quarter was up an astounding 93 percent from $18.62 million or $0.29 per share last year.
"Our fourth quarter results highlight the demand that has been building in our business as quarterly and yearly sales both achieved new record levels. Most notably in the quarter, total sales of our three growth categories increased 50 percent over the fourth quarter the prior year. This performance included individual records in each of these categories," CEO Tom Stanton said in a statement.
According to the release, total sales for the quarter increased 33 percent to $165.33 million from $124.23 million in the same quarter last year, and topped sixteen Wall Street analysts' consensus estimate of $155.79 million.
“Broadband Access saw growth of 75 percent over the fourth quarter the prior year led by expanding deployments of our Total Access 5000 platform and related services revenue. Our Internetworking category grew 37 percent over the fourth quarter the prior year as we continued to see growth across all of our distribution channels. Optical Access grew 24 percent over the fourth quarter the prior year, indicative of the strength we saw across all of our mobility products," Stanton added.
Operating income for the fourth quarter climbed 71 percent to $44.86 million from $26.24 million in the prior-year quarter, and gross profit was $96.91 million, up from $73.36 million in the year-ago quarter.
Provision for income taxes for the quarter was $12.83 million, including a benefit of $4.5 million, higher than $8.88 million in the corresponding quarter of last year, due to delays in federal legislation required to extend research tax credits for the 2010 year.
In addition, Adtran said that its board declared a cash dividend for the fourth quarter of $0.09 per share, payable on February 17 to holders on record at the close of business on February 3, 2011.
For fiscal 2010, the company reported net income of $113.99 million or $1.78 per share, higher than from $74.22 million or $1.17 per share in the previous year. Analysts expected the company to report earnings of $1.66 per share for fiscal 2010. Total sales for the full year increased to $605.67 million from $484.19 million reported last year. The Street was looking for full-year 2010 revenues of $596.20 million.
ADTN closed Tuesday's regular trading session at $39.65, up $0.25 or 0.63% on a volume of 2.54 million shares, higher than the three-month average volume of 1.06 million shares. From the looks of it, Adtran is starting 2011 off on the right foot.
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Stefanie Mosca is a Web editor for TMCnet. Previously she worked as a freelance copy editor for Digital Surgeons LLC. She holds a master's degree in journalism from Quinnipiac University and a bachelor's degree in communication from the University of New Haven. To read more of her articles, please visit her columnist page.
Edited by Stefanie Mosca