Fueled by what company CEO Tom Stanton said was a "strong demand for high speed connectivity coupled with increasing demand for Ethernet services," ADTRAN's (Nasdaq: ADTN) Q2 revenue surpassed analyst expectations.
In Q2 2010, ADTRAN posted net income of $27.8 million, or 44 cents a share, versus $18.8 million, or 30 cents a share in Q2 2009. Analysts polled by Thomson Reuters I/B/E/S expected ADTRAN to report a profit of 35 cents a share, on revenue of $137.9 million.
Although ADTRAN reported that all of its carrier and enterprise channels saw growth, the stars of the two groups were broadband access and internetworking, which grew 43 percent and 37 percent, respectively. Broadband continues to be a big seller for ADTRAN, which saw a similar trend take place in Q1.
The growth of the broadband and internetworking segments were fueled by strong sales to three of its largest service provider customers--AT&T (NYSE: T), Qwest (NYSE: Q), and Verizon (NYSE:VZ). During the second quarter, AT&T contributed 17 percent to ADTRAN's revenue, while Verizon and Qwest contributed 12 and 20 percent.
But the large incumbents are only one part of ADTRAN's growth strategy. Along with strong sales from the three largest U.S. carriers, ADTRAN also won a large contract from existing Tier 2 ILEC customer Frontier (NYSE: FTR) and various Tier 3 ILECs that are expanding their respective broadband footprints with broadband stimulus grants.
For more:
- see the release here
- Reuters has this article
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