Tom Stanton expects G.fast sales to nbn Australia and AT&T for incumbent area use. At least one and possibly two large cablecos are buying 10 gig PON gear and he expects NG-PON2 revenue before the end of the year. But Century still isn't spending and Deutsche Telekom is cutting back.
Things are so tight they've cut back on R & D, dangerous while their largest international competitor, Huawei, is increasing R&D rapidly. The quarterly loss was less than in Q1 but over $10M before an income tax refund. Adtran is a respected company struggling in a tough market. Adtran and Calix made an early move to SDN/NFV that is starting to pay off.
The income statement is below.
Consolidated Statements of Income |
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Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Sales | ||||||||||||||||||||||
Products | $ | 115,063 | $ | 155,543 | $ | 220,316 | $ | 299,140 | ||||||||||||||
Services | 12,985 | 29,130 | 28,538 | 55,812 | ||||||||||||||||||
Total Sales | 128,048 | 184,673 | 248,854 | 354,952 | ||||||||||||||||||
Cost of Sales | ||||||||||||||||||||||
Products | 69,629 | 79,663 | 138,241 | 156,327 | ||||||||||||||||||
Services | 8,423 | 20,384 | 20,884 | 40,290 | ||||||||||||||||||
Total Cost of Sales | 78,052 | 100,047 | 159,125 | 196,617 | ||||||||||||||||||
Gross Profit | 49,996 | 84,626 | 89,729 | 158,335 | ||||||||||||||||||
Selling, general and administrative expenses | 32,080 | 34,706 | 65,611 | 69,495 | ||||||||||||||||||
Research and development expenses | 30,729 | 33,557 | 63,578 | 65,528 | ||||||||||||||||||
Operating Income (Loss) | (12,813 | ) | 16,363 | (39,460 | ) | 23,312 | ||||||||||||||||
Interest and dividend income | 913 | 972 | 1,779 | 1,905 | ||||||||||||||||||
Interest expense | (132 | ) | (137 | ) | (264 | ) | (278 | ) | ||||||||||||||
Net realized investment gain | 990 | 1,390 | 893 | 1,860 | ||||||||||||||||||
Other expense, net | (217 | ) | (719 | ) | (274 | ) | (585 | ) | ||||||||||||||
Gain on bargain purchase of a business | — | — | 11,322 | — | ||||||||||||||||||
Income (loss) before provision for income taxes | (11,259 | ) | 17,869 | (26,004 | ) | 26,214 | ||||||||||||||||
(Provision) benefit for income taxes | 3,589 | (5,468 | ) | 7,520 | (7,162 | ) | ||||||||||||||||
Net Income (Loss) | $ | (7,670 | ) | $ | 12,401 | $ | (18,484 | ) | $ | 19,052 | ||||||||||||
Weighted average shares outstanding – basic | 47,856 | 48,036 | 48,043 | 48,232 | ||||||||||||||||||
Weighted average shares outstanding – diluted | 47,902 | 48,413 | 48,091 | 48,675 | ||||||||||||||||||
Earnings (loss) per common share – basic | $ | (0.16 | ) | $ | 0.26 | $ | (0.38 | ) | $ | 0.40 | ||||||||||||
Earnings (loss) per common share – diluted | $ | (0.16 | ) | $ | 0.26 | $ | (0.38 | ) | $ | 0.39 | ||||||||||||
(1) Assumes exercise of dilutive stock options calculated under the treasury stock method. |