Adtran Reports $137 Million in Third-Quarter Sales, 11 Percent Year-over-Year Increase

A Huntsville, Alabama-based networking and communications provider today reported sales of more than $137 million in the third quarter.

 

The figure marks an 11 percent year-over-year increase for Adtran Inc., whose solutions for carriers and SMBs enable voice, data, video and Internet communications through copper, fiber and wireless network infrastructures.

 

According to TradingMarkets.com, year-to-date sales of $388 million represent an 8 percent increase from last year’s mark of $357 million. In a conference call available here, Adtran reportedly also says that its net income for the third quarter was $22.4 million – or 35 cents per share. The figures mark increases from $21.4 million, or 31 cents per share, from the year-ago quarter.

 

“The company also announced that its board of directors has declared a cash dividend for the third quarter of 2008 of (9 cents) per common share,” TradingMarkets.com reports.

 

The news comes as IT industry insiders weigh in on ways that companies can survive and even thrive, as Adtran apparently is, amid a financial crisis.

 

As TMC President Rich Tehrani (News - Alert) wrote in a recent blog entry, all sectors of the global economy likely are at risk, though it’s possible to bolster sales and maintain revenue levels.

 

“Most importantly, you need to focus on areas which save your customers money and make them more productive. UC, telepresence, workforce automation, FMC and other technologies pay for themselves quickly,” Tehrani writes. “In addition, SIP trunking is a natural in this market. You save your customers money and get a recurring revenue source if you are a service provider or reseller.”

 

As TMCnet reported, one international risk consulting firm less than a week ago formed a special team to advise clients on how to respond to stressed market conditions, provide updates on market and regulatory changes and help them navigate the unfolding global economic environment.

 

Officials at Protiviti Inc. say they aim to help companies understand what they call “the new landscape” in order to manage “uncertain times ahead.”

 

According to Carol Beaumier, a Protiviti executive vice president and leader of its “Financial Crisis Team,” there’s never been a stronger need than now for sound financial risk management.

 

“Even the strongest of companies will find themselves subject to increased market pressures and regulatory scrutiny,” Beaumier said. “Others may need to seek additional capital and liquidity or even merge with other organizations.”

 

Yet some organizations, such as Adtran, may not need to consider such ERM strategies.

 

Adtran’s positive news comes as stocks in Japan and Europe reportedly are rallying with the United States, as investors’ confidence is bolstered by announcements today that the administration is injecting $250 billion into stressed American banks.

 

According to Mark Landler of The New York Times, officials moments ago confirmed what had been reported yesterday, that the United States is following the lead of European countries in its landmark $250 billion investment – the largest intervention in the American banking system since the 1930’s.

 

“This is an essential short-term measure to ensure the viability of the American banking system,” President Bush reportedly said from the Rose Garden this morning.

 

Part of the plan calls for the Federal Deposit Insurance Corporation to offer an unlimited guarantee on bank deposits in accounts that do not bear interest – typically those of businesses.

 

Despite the economic climate, Adtran has apparently bucked downward trends for businesses and released its earnings at what some may call a turning point for the U.S. stock market – news that would bode well for the entire financial market, and especially tech and technology.

 

In the coming weeks, industry bellwethers such as Cisco are expected release their quarterly earning reports. The IT market is expected to follow the reports to see whether Adtran’s success story marks a positive upward trend.