Wednesday, January 18, 2012

Seeking Alpha : Should Investors Add Adtran After Fourth Quarter Earnings?

Such is the state of business for companies that supply equipment to carriers like Verizon (VZ) like AT&T (T) that not missing numbers is greeted with the enthusiasm usually reserved for beat-and-raise stories. Certainly these are challenging times for last-mile equipment vendor Adtran (ADTN), but increased home and business demand for broadband and ongoing wireless backhaul buildout could spell better times ahead.

Q4 Results - Good Enough Will Do
Adtran's results weren't great, but the performance at other carrier equipment vendors like Alcatel-Lucent (ALU) and Acme Packet (APKT) wouldn't give any reason to expect them to be so. Nevertheless, a sequential revenue drop of 9% (and a 6% gain from last year) was good enough to meet expectations.

Adtran saw year-on-year growth in both broadband access (up 49%) and internetworking (up 37%), but sequential comparisons were not so exciting (down almost 15% and up about 2%, respectively). Optical access was outright bad, though, as sales dropped 17% from last year and 25% from the third quarter.

Click the link for the full article:
Should Investors Add Adtran After Fourth Quarter Earnings?

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