The fiber boom, led by England, Germany, France, Spain, 4M at AT&T, and US regionals, is leading to remarkable results at suppliers. Adtran CEO Tom Stanton warns, "Supply chain constraints do present risk in the near-term or midterm. We continue to see lead times extend and expect that this will continue for some time into the future. "
Construction companies are raising prices, in some cases withdrawing bids and resubmitting at a higher figure. Government projects have to plan a 3-5 year ramp or waste an enormous amount of taxpayer money. The word is starting to get around Washington that spending more than $5-10 billion the next three years will be a very bad mistake.
Adtran seeing demand for 10 Gbps fiber symmetric units. Some of the smaller regional carriers have made 10G their standard. The price is so close to the GPPON price they are going 10G in hopes of future demand. Adtran also has an order for 10G from a big cable company for backhaul.
Stanton added, "Q1 was a record revenue quarter for our in-home service delivery platforms, especially in mesh WiFi, and we have very strong order bookings going forward for this growth area." Cloud-managed home Wi-Fi is an expanding market pioneered by ASSIA and becoming a standard offering.*
The company has introduced an interesting LoRaWAN IoT Gateway. Instead of a wise area, it's designed for local service, perhaps a single building. Heckuva lot cheaper than 5G for IoT. See LoRaWAN gains traction for in-building & campus
Despite the good news in Q1, Adtran had an operating loss. Other income - unexplained by possibly currency hedges, resulted in a small GAAP profit,
*Disclosure. I'm on the Advisory Board of ASSIA