Research Desk Line-up: EXFO Inc. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on ADTRAN, Inc. (NASDAQ: ADTN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ADTN, following the Company's release of its second quarter fiscal 2017 earnings results on July 19, 2017. The networking equipment maker beat top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Communication Equipment industry. Pro-TD has currently selected EXFO Inc. (NASDAQ: EXFO) for due-diligence and potential coverage as the Company reported on June 29, 2017, its financial results for Q3 FY17 which ended on May 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on EXFO Inc. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ADTN; also brushing on EXFO. With the links below you can directly download the report of your stock of interest-free of charge at:

http://protraderdaily.com/optin/?symbol=ADTN

http://protraderdaily.com/optin/?symbol=EXFO

Earnings Reviewed

For the second quarter 2017, ADTRAN's sales totaled $184.7 million compared to sales of $162.7 million in Q2 2016. The Company's record revenue was driven by increasing momentum within its ultra-broadband solutions, where it reported significant y-o-y growth both in the US and Europe. ADTRAN's revenue numbers exceeded analysts' expectations of $183 million.

ADTRAN's GAAP gross margins for Q2 2017 were 45.8% compared to 48.5% for Q2 2016. The y-o-y fall in quarter gross margins was driven primarily by higher domestic services and international revenues versus the year ago same period.

For Q2 2017, ADTRAN's total operating expenses on a GAAP basis were $68.2 million compared to $64.1 million for Q2 2016. On a non-GAAP basis, the Company's operating expenses for the reported quarter were $65.5 million compared to $62.3 million in the prior year's corresponding quarter. For Q2 2017, ADTRAN's expenses related to the amortization of acquired intangibles were $582,000 net of tax compared to $293,000 in Q2 2016.

ADTRAN's operating income on a GAAP basis for Q2 2017 was $16.4 million, up 11% compared to the $14.8 million reported in Q2 2016, attributable to higher revenue but was partially offset by lower gross margin percentage and higher operating expenses. The Company's non-GAAP operating income for the reported quarter was $19.2 million compared to $16.8 million for the year earlier same quarter.

For Q2 2017, ADTRAN's net income was $12.4 million compared to $10.2 million for Q2 2016. The Company's earnings per share, assuming dilution, were $0.26 versus $0.21 for the prior year's comparable quarter. ADTRAN's non-GAAP earnings per share were $0.30 for Q2 2017 compared to $0.25 for Q2 2016. The Company's earnings topped Wall Street's expectations of $0.22 per share.

Segment Details

ADTRAN's network solutions revenues for Q2 2017 were $155.5 million, up 12% from revenue of $138.5 million in Q2 2016. The Company's services and support segment continued its strong y-o-y growth as Q2 2017 revenues rose 21% to $29.1 million compared to $24.2 million in the prior year's same quarter.

During Q2 2017, ADTRAN's access and aggregation revenues were $138.6 million, up 36% compared to $102.2 million for Q2 2016. In the reported quarter, the Company's Customer devices revenues fell 17% to $33.8 million, down 17% compared to $40.9 million for the prior year's corresponding quarter. Furthermore, ADTRAN's traditional and other product revenues for Q2 2017 totaled $12.2 million, down 38% compared to $19.6 million for Q2 2016.

On a geographical basis, ADTRAN's domestic revenues for Q2 2017 were $146.7 million, up $13.1 million, or 10%, from the $133.6 million reported in Q2 2016. The Company's international revenues for the quarter surged 31% to $38 million compared to $29.1 million in the prior year's same quarter.

Balance Sheet Review

ADTRAN's unrestricted cash and marketable securities net of debt totaled $249.3 million at the end of Q2 2017, after paying $4.4 million in dividends and repurchasing just under 595,000 shares of common stock for $11.8 million during the reported quarter. For Q2 2017, ADTRAN generated $11.5 million of cash flow from operations.

ADTRAN's net trade accounts receivable were $79.9 million at the end of Q2 2017, resulting in a DSO of 39 days compared to 50 days at the end of Q2 2016. The Company's inventories were $114 million at the end of the reported quarter, up from $112.8 million in the previous quarter.

ADTRAN also announced that its Board of Directors declared a cash dividend for Q2 2017. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on August 03, 2017. The ex-dividend date is August 01, 2017, and the payment date is August 17, 2017.

Outlook

For Q3 2017, ADTRAN is estimating revenues to remain flat versus the reported quarter. The Company expects gross margins on a GAAP basis to remain unchanged on a q-o-q basis. ADTRAN anticipates consolidated tax rate for Q3 2017 to be in the low 30% range.

Stock Performance

On Thursday, July 20, 2017, the stock closed the trading session at $23.80, jumping 8.18% from its previous closing price of $22.00. A total volume of 922.73 thousand shares has exchanged hands, which was higher than the 3-month average volume of 342.81 thousand shares. ADTRAN's stock price surged 18.41% in the last one month, 19.90% in the past three months, and 29.42% in the previous twelve months. The stock is trading at a PE ratio of 31.52 and has a dividend yield of 1.51%. The stock currently has a market cap of $1.15 billion.

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