Adtran Inc. (Nasdaq: ADTN) reported earnings of 36 cents a share for its third quarter Tuesday, beating First Call's estimate of 33 cents a share on record sales for HDSL and T1 products.
Shares in the company, which makes high-speed transmission products for digital data service, closed at 36 11/16 Monday, approaching their recent peak of 42 11/16 after the company inked a contract (statement) to provide some of its products to Bell Atlantic (NYSE: BEL).
Earnings per share, assuming dilution, for the third quarter increased 24 percent to 36 cents a share, compared to earnings per share of 29 cents a share for the third quarter of 1998.
Net income for the quarter increased to $14.1 million from net income of $11.4 million for the quarter ended Sept. 30, 1998. Sales for the quarter increased 26 percent to $97 million from sales of $77 million for the quarter in the same period a year ago.
Record revenue in the company's Carrier and Enterprise divisions were cited for the better-than-expected results. "Both achieved record revenues driven by best ever performances in HDSL sales for Carrier and T1 sales for Enterprise," said Adtran CEO Mark C. Smith in a company release.