Exhibit 99.1
ADTRAN, INC.
REPORTS SECOND QUARTER 2005
RESULTS, DECLARES INCREASED QUARTERLY
CASH DIVIDEND AND ANNOUNCES
EXECUTIVE MANAGEMENT SUCCESSION
HUNTSVILLE, Ala.—(BUSINESS
WIRE) —July 18,
2005—ADTRAN, Inc. (NASDAQ:ADTN - News) reported results for
the second quarter ended June 30, 2005. Sales were $118,873,000 for
the quarter compared to $104,577,000 for the first quarter of 2005
and $120,601,000 for the second quarter of 2004.
Net income was $20,719,000 for the quarter
compared to $15,220,000 for the first quarter of 2005 and
$21,398,000 for the second quarter of 2004. Earnings per share,
assuming dilution, were $0.27 for the quarter compared to $0.20 for
the first quarter of 2005 and $0.26 for the second quarter of
2004.
Gross margin improved to 58.5% for the quarter
compared to 57.5% for the second quarter of 2004. The increase in
gross margin is principally the result of continuing improvements
in manufacturing efficiencies and product cost
reductions.
Net cash provided by operating activities
totaled $22 million for the quarter. Unrestricted cash and
marketable securities totaled $308 million, at June 30,
2005.
ADTRAN Chairman and Chief Executive Officer Mark
Smith stated, “Revenues for the quarter were stronger than
anticipated. Our results benefited from robust sequential revenue
growth in DSLAM, optical access and NetVanta product categories
accompanied by strength in HDSL revenues. We believe these results
reflect continuing momentum and share gains in the markets we
serve.”
The Company also announced that its Board of
Directors declared an increased cash dividend for the second
quarter of 2005. The quarterly cash dividend is $0.09 per common
share to be paid to holders of record at the close of business on
August 5, 2005. The ex-dividend date is August 3, 2005 and the
payment date is August 19, 2005.
Mark Smith, the Company’s CEO since its
founding, announced that he will retire as CEO effective on his
65 th birthday of September 10, 2005. Mr.
Smith will remain as the non-executive Chairman of the Board.
Howard Thrailkill, the Company’s President, COO and Director
will also retire from each of these positions on September 10,
2005. Mr. Thrailkill has been with the Company and served as its
COO for 13 years and also its President and Director for the past
10 years. The Company also announced that its Board of Directors
has elected Tom Stanton as Chief Executive Officer and Director and
Danny Windham as President, Chief Operating Officer and Secretary,
both effective September 10, 2005. Mark Smith stated, “The
elections of Tom Stanton and Danny Windham to their respective
positions clearly demonstrate our Board’s attention to
perpetuating the unique and long standing culture at ADTRAN. Both
individuals have served many years at ADTRAN. They bring immense
levels of experience and respect as seasoned businessmen,
entrepreneurs and technologists and we are very excited about
ADTRAN’s continuing growth opportunities under their
leadership.” Mark Smith also stated, “Our Board and
employees are grateful to Howard Thrailkill for his service at
ADTRAN. Howard helped to lead our Company through many years of
growth and we wish him well.”
The Company also confirmed that its second
quarter conference call will be held Tuesday, July 19 at 9:30 a.m.
Central Time. Guidance for the third quarter and year 2005 will be
issued during this conference call. This conference call will be
webcast live through StreetEvents.com. To listen, simply visit the
Investor Relations site at http://www.adtran.com or
http://streetevents.com approximately 10 minutes prior to the start
of the call and click on the conference call link
provided.
An online replay of the conference call will be
available for seven days at http://streetevents.com. In addition,
an online replay of the conference call, as well as the text of the
Company’s earnings release, will be available on the Investor
Relations site at http://www.adtran.com for at least 12 months
following the call.
ADTRAN, Inc. is one of the world’s most
successful network access equipment suppliers, with a 17-year
history of profitability and a portfolio of more than 1,300
solutions for use in the last mile of today’s
telecommunications networks. Widely deployed by both carriers and
enterprises, ADTRAN solutions enable voice, data, video, and
Internet communications across copper, fiber, and wireless network
infrastructures. ADTRAN solutions are currently in use by every
major domestic service provider and many international ones, as
well as by thousands of public, private and government
organizations worldwide.
This press release contains forward-looking
statements which reflect management’s best judgment based on
factors currently known. However, these statements involve risks
and uncertainties, including the successful development and market
acceptance of new products, the degree of competition in the market
for such products, the product and channel mix, component costs,
manufacturing efficiencies, and other risks detailed in our annual
report on Form 10-K for the year ended December 31, 2004. Such
risks and uncertainties could cause actual results to differ
materially from those in the forward-looking statements included in
this press release.
CONTACT:
Jim Matthews
Senior Vice President/CFO
256-963-8775
INVESTOR SERVICES/ASSISTANCE:
Charlene Little
256-963-8611
Cathy Bartels
256-963-8220
