Adtran Inc. (Nasdaq: ADTN) topped expectations for the first quarter Monday, reporting earnings of 42 cents a share. The results were well above First Call's estimate of 35 cents a share.
Shares in the maker of high-speed digital transmission products for telecommunications firms closed at 68 7/8 Friday. The company, whose products are also used by corporate end users and original equipment manufacturers to serve digital data over existing telephone networks, also topped estimates in its third quarter.
Sales were up 29 percent over last year's first quarter, hitting $99.5 million. Net income for the quarter increased 84 percent to $16.8 million. Earnings per share, assuming dilution, increased 78 percent to 42 cents, compared to 24 cents a share for the first quarter of 1999.
The company said its systems product lines, led by its Total Access, ATLAS and the MX 2800 products, did particularly well. Revenue from those products in the current quarter increased nearly 27 percent over the fourth quarter. Adtran also kept expenses at planned levels, resulting in favorable operating margins.
Adtran's competitors include Lucent (NYSE: LU), Pairgain (Nasdaq: PAIR) and ADC Telecommunications (Nasdaq: ADCT).