ADTRAN Inc. (ADTN, Financial) filed Quarterly Report for the period ended 2012-09-30.
Adtran, Inc. has a market cap of $1.08 billion; its shares were traded at around $17.2 with a P/E ratio of 14 and P/S ratio of 1.5. The dividend yield of Adtran, Inc. stocks is 2.1%. Adtran, Inc. had an annual average earning growth of 16.5% over the past 10 years. GuruFocus rated Adtran, Inc. the business predictability rank of 4-star.
ADTRANs sales decreased 15.6% from $192.2 million in the three months ended September 30, 2011 to $162.1 million in the three months ended September 30, 2012, and decreased 11.3% from $541.9 million in the nine months ended September 30, 2011 to $480.9 million in the nine months ended September 30, 2012. The decrease in sales for the three months ended September 30, 2012 is primarily attributable to a $19.3 million decrease in sales of our HDSL and other legacy products, an $11.1 million decrease in sales of our Optical products, and a $7.1 million decrease in sales of our Internetworking products, partially offset by a $7.5 million increase in sales of our Broadband Access products. The decrease in sales for the nine months ended September 30, 2012 is primarily attributable to a $72.4 million decrease in sales of our HDSL and other legacy products, a $25.8 million decrease in sales of our Optical products, partially offset by a $34.2 million increase in sales of our Broadband Access products and a $2.9 million increase in sales of our Internetworking products.
Enterprise Networks sales decreased 24.0% from $39.7 million in the three months ended September 30, 2011 to $30.2 million in the three months ended September 30, 2012, and decreased 6.6% from $106.6 million in the nine months ended September 30, 2011 to $99.6 million in the nine months ended September 30, 2012. The decrease for the three and nine months ended September 30, 2012 is primarily attributable to decreases in sales of Internetworking products and legacy products. The decrease in Internetworking product sales for the three and nine months ended September, 30, 2012, is primarily due to uncertainties caused by the macro-economic environment, which resulted in delays in end-customer purchases. The impact of this environment was partially offset by market share gains in the competitive service provider markets, value-added reseller recruitment, and by the addition of our vWLAN solutions. Internetworking product sales attributable to Enterprise Networks were 92.3% and 91.5% of the divisions sales in the three and nine months ended September 30, 2012, compared to 88.6% and 86.6% in the three and nine months ended September 30, 2011. Legacy products primarily comprise the remainder of Enterprise Networks sales. Enterprise Networks sales as a percentage of total sales decreased from 20.7% for the three months ended September 30, 2011 to 18.6% for the three months ended September 30, 2012 and increased from 19.7% for the nine months ended September 30, 2011 to 20.7% for the nine months ended September 30, 2012.
International sales, which are included in the Carrier Networks and Enterprise Networks amounts discussed above, increased 124.9% from $21.9 million in the three months ended September 30, 2011 to $49.2 million in the three months ended September 30, 2012, and increased 109.9% from $57.7 million in the nine months ended September 30, 2011 to $121.1 million in the nine months ended September 30, 2012. International sales, as a percentage of total sales, increased from 11.4% for the three months ended September 30, 2011 to 30.3% for the three months ended September 30, 2012, and increased from 10.6% for the nine months ended September 30, 2011 to 25.2% for the nine months ended September 30, 2012. International sales increased in the three and nine months ended September 30, 2012 compared to the three and nine months ended September 30, 2011 primarily due to sales attributable to the acquired NSN BBA business and an increase in organic sales in Latin America.
Our long-term investments decreased 1.5% from $332.0 million at December 31, 2011 to $327.1 million at September 30, 2012. The primary reason for the decrease in our long-term investments during 2012 was the movement of long-term corporate bonds to short-term status. Long-term investments at September 30, 2012 and December 31, 2011 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 $20.6 million and $12.8 million, and with a fair value of $37.8 million and $31.3 million, at September 30, 2012 and December 31, 2011, respectively.
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Adtran, Inc. has a market cap of $1.08 billion; its shares were traded at around $17.2 with a P/E ratio of 14 and P/S ratio of 1.5. The dividend yield of Adtran, Inc. stocks is 2.1%. Adtran, Inc. had an annual average earning growth of 16.5% over the past 10 years. GuruFocus rated Adtran, Inc. the business predictability rank of 4-star.
Highlight of Business Operations:
Sales were $162.1 million and $480.9 million for the three and nine months ended September 30, 2012 compared to $192.2 million and $541.9 million for the three and nine months ended September 30, 2011. Product revenues for our three primary growth areas, Broadband Access, Optical Access and Internetworking, were $141.0 million and $400.7 million for the three and nine months ended September 30, 2012 compared to $151.8 million and $389.4 million for the three and nine months ended September 30, 2011. Our gross margin decreased to 49.3% and 51.8% for the three and nine months ended September 30, 2012 from 57.0% and 58.1% for the three and nine months ended September 30, 2011. Our operating income margin decreased to 6.3% and 11.1% for the three and nine months ended September 30, 2012 from 26.6% and 27.3% for the three and nine months ended September 30, 2011. Net income was $9.3 million and $43.3 million for the three and nine months ended September 30, 2012 compared to $36.2 million and $107.4 million for the three and nine months ended September 30, 2011. Our effective tax rate decreased to 32.4% for the three months ended September 30, 2012 from 34.6% for the three months ended September 30, 2011 and increased to 34.9% for the nine months ended September 30, 2012 from 33.2% for the nine months ended September 30, 2011. Earnings per share, assuming dilution, were $0.15 and $0.68 for the three and nine months ended September 30, 2012 compared to $0.56 and $1.63 for the three and nine months ended September 30, 2011.ADTRANs sales decreased 15.6% from $192.2 million in the three months ended September 30, 2011 to $162.1 million in the three months ended September 30, 2012, and decreased 11.3% from $541.9 million in the nine months ended September 30, 2011 to $480.9 million in the nine months ended September 30, 2012. The decrease in sales for the three months ended September 30, 2012 is primarily attributable to a $19.3 million decrease in sales of our HDSL and other legacy products, an $11.1 million decrease in sales of our Optical products, and a $7.1 million decrease in sales of our Internetworking products, partially offset by a $7.5 million increase in sales of our Broadband Access products. The decrease in sales for the nine months ended September 30, 2012 is primarily attributable to a $72.4 million decrease in sales of our HDSL and other legacy products, a $25.8 million decrease in sales of our Optical products, partially offset by a $34.2 million increase in sales of our Broadband Access products and a $2.9 million increase in sales of our Internetworking products.
Enterprise Networks sales decreased 24.0% from $39.7 million in the three months ended September 30, 2011 to $30.2 million in the three months ended September 30, 2012, and decreased 6.6% from $106.6 million in the nine months ended September 30, 2011 to $99.6 million in the nine months ended September 30, 2012. The decrease for the three and nine months ended September 30, 2012 is primarily attributable to decreases in sales of Internetworking products and legacy products. The decrease in Internetworking product sales for the three and nine months ended September, 30, 2012, is primarily due to uncertainties caused by the macro-economic environment, which resulted in delays in end-customer purchases. The impact of this environment was partially offset by market share gains in the competitive service provider markets, value-added reseller recruitment, and by the addition of our vWLAN solutions. Internetworking product sales attributable to Enterprise Networks were 92.3% and 91.5% of the divisions sales in the three and nine months ended September 30, 2012, compared to 88.6% and 86.6% in the three and nine months ended September 30, 2011. Legacy products primarily comprise the remainder of Enterprise Networks sales. Enterprise Networks sales as a percentage of total sales decreased from 20.7% for the three months ended September 30, 2011 to 18.6% for the three months ended September 30, 2012 and increased from 19.7% for the nine months ended September 30, 2011 to 20.7% for the nine months ended September 30, 2012.
International sales, which are included in the Carrier Networks and Enterprise Networks amounts discussed above, increased 124.9% from $21.9 million in the three months ended September 30, 2011 to $49.2 million in the three months ended September 30, 2012, and increased 109.9% from $57.7 million in the nine months ended September 30, 2011 to $121.1 million in the nine months ended September 30, 2012. International sales, as a percentage of total sales, increased from 11.4% for the three months ended September 30, 2011 to 30.3% for the three months ended September 30, 2012, and increased from 10.6% for the nine months ended September 30, 2011 to 25.2% for the nine months ended September 30, 2012. International sales increased in the three and nine months ended September 30, 2012 compared to the three and nine months ended September 30, 2011 primarily due to sales attributable to the acquired NSN BBA business and an increase in organic sales in Latin America.
Our long-term investments decreased 1.5% from $332.0 million at December 31, 2011 to $327.1 million at September 30, 2012. The primary reason for the decrease in our long-term investments during 2012 was the movement of long-term corporate bonds to short-term status. Long-term investments at September 30, 2012 and December 31, 2011 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 $20.6 million and $12.8 million, and with a fair value of $37.8 million and $31.3 million, at September 30, 2012 and December 31, 2011, respectively.
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