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ADTRAN Inc. (ADTN) filed Quarterly Report for the period ended 2011-09-30.
Adtran Inc. has a market cap of $2.12 billion; its shares were traded at around $32.89 with a P/E ratio of 15 and P/S ratio of 3.5. The dividend yield of Adtran Inc. stocks is 1.1%. Adtran Inc. had an annual average earning growth of 21.9% over the past 10 years. GuruFocus rated Adtran Inc. the business predictability rank of 2.5-star.
This is the annual revenues and earnings per share of ADTN over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ADTN.
Highlight of Business Operations:
Sales were $192.2 million and $541.9 million for the three and nine months ended September 30, 2011 compared to $163.0 million and $440.3 million for the three and nine months ended September 30, 2010. Product revenues for our three primary growth areas, Broadband Access, Optical Access and Internetworking, were $151.8 million and $389.4 million for the three and nine months ended September 30, 2011 compared to $93.2 million and $252.0 million for the three and nine months ended September 30, 2010. Our gross margin decreased to 57.0% and 58.1% for the three and nine months ended September 30, 2011 from 59.7% and 59.5% for the three and nine months ended September 30, 2010. Our operating income margin decreased to 26.6% for the three months ended September 30, 2011 from 27.6% for the three months ended September 30, 2010, and increased to 27.3% for the nine months ended September 30, 2011 from 24.8% for the nine months ended September 30, 2010. Net income was $36.2 million and $107.4 million for the three and nine months ended September 30, 2011 compared to $32.1 million and $78.0 million for the three and nine months ended September 30, 2010. Our effective tax rate decreased to 34.6% for the three months ended September 30, 2011 from 34.7% for the three months ended September 30, 2010 and decreased to 33.2% for the nine months ended September 30, 2011 from 34.6% for the nine months ended September 30, 2010. Earnings per share, assuming dilution, were $0.56 and $1.63 for the three and nine months ended September 30, 2011 compared to $0.50 and $1.23 for the three and nine months ended September 30, 2010.ADTRAN’s sales increased 17.9% from $163.0 million in the three months ended September 30, 2010 to $192.2 million in the three months ended September 30, 2011, and increased 23.1% from $440.3 million in the nine months ended September 30, 2010 to $541.9 million in the nine months ended September 30, 2011. The increase in sales for the three months ended September 30, 2011 is primarily attributable to a $41.9 million increase in sales of our Broadband Access products, a $13.0 million increase in sales of our Internetworking products, and a $3.7 million increase in sales of our Optical Access products, partially offset by a $29.3 million decrease in sales of our HDSL and other traditional products. The increase in sales for the nine months ended September 30, 2011 is primarily attributable to an $89.4 million increase in sales of our Broadband Access products, a $28.9 million increase in sales of our Internetworking products, and a $19.2 million increase in sales of our Optical Access products, partially offset by a $35.8 million decrease in sales of our HDSL and other traditional products.
Enterprise Networks sales increased 15.5% from $34.4 million in the three months ended September 30, 2010 to $39.7 million in the three months ended September 30, 2011, and increased 12.6% from $94.7 million in the nine months ended September 30, 2010 to $106.6 million in the nine months ended September 30, 2011. The increase for the three and nine months ended September 30, 2011 is primarily attributable to an increase in sales of Internetworking products, partially offset by a decrease in sales of traditional products. Internetworking product sales attributable to Enterprise Networks were 88.6% and 86.6% of the division’s sales in the three and nine months ended September 30, 2011, compared to 77.4% and 75.7% in the three and nine months ended September 30, 2010. Traditional products primarily comprise the remainder of Enterprise Networks sales. Enterprise Networks sales as a percentage of total sales decreased from 21.1% for the three months ended September 30, 2010 to 20.7% for the three months ended September 30, 2011 and decreased from 21.5% for the nine months ended September 30, 2010 to 19.7% for the nine months ended September 30, 2011.
International sales, which are included in the Carrier Networks and Enterprise Networks amounts discussed above, increased 163.0% from $8.3 million in the three months ended September 30, 2010 to $21.9 million in the three months ended September 30, 2011, and increased 147.0% from $23.4 million in the nine months ended September 30, 2010 to $57.7 million in the nine months ended September 30, 2011. International sales, as a percentage of total sales, increased from 5.1% for the three months ended September 30, 2010 to 11.4% for the three months ended September 30, 2011, and increased from 5.3% for the nine months ended September 30, 2010 to 10.6% for the nine months ended September 30, 2011. International sales increased in the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010 primarily due to an increase in sales to Latin America, Asia/Pacific and Europe.
Our long-term investments increased 33.3% from $261.2 million at December 31, 2010 to $348.1 million at September 30, 2011. The primary reasons for the increase in our long-term investments were cash generated from operations and proceeds from stock option exercises by our employees. Long-term investments at September 30, 2011 and December 31, 2010 included an investment in a certificate of deposit of $48.3 million, which serves as collateral for our revenue bonds, as discussed below. We have various equity investments included in long-term investments at a cost of $12.7 million and $11.5 million, and with a fair value of $34.0 million and $48.0 million, at September 30, 2011 and December 31, 2010, respectively, including a single equity security, of which we held
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