Wednesday, March 14, 2012

ADTRAN Cuts Forecast Citing Delayed Carrier Spending

ADTRAN cuts its revenue and earnings estimates for the first quarter ending March 31, 2012 to a range from $130 million to $135 million. GAAP earnings per share for the quarter, assuming dilution, are expected to range from $0.17 to $0.20. The company had previously reported Q4 2011 revenue of $175,286,000 and said it expected that level to remain flat in the current quarter.

ADTRAN Chief Executive Officer Tom Stanton stated, "Two issues impacted us in the first quarter. The first was a slower than normal start to the seasonal buying pattern at some of our carrier customers. The second, which had a greater impact, was a delay in both the start and ramp of orders from a carrier customer due to new system implementations. Order rates for the month of March have substantially improved and we are encouraged that the prior slowdown that we experienced is behind us."