Adtran, inc. reports earnings for the fourth quarter 2018 and
declares quarterly cash dividend
Huntsville, ala.--(business wire)--adtran, inc. (nasdaq:adtn) reported results for the fourth quarter 2018. for the quarter, sales were $140.1 million compared to $126.8 million for the fourth quarter of 2017. net loss was $8.4 million compared to a net loss of $11.1 million for the fourth quarter of 2017. earnings per share were a loss of $0.18 compared to a loss of $0.23 for the fourth quarter of 2017. non-gaap earnings per share were a loss of $0.12 compared to earnings of $0.05 for the fourth quarter of 2017. net loss and gaap and non-gaap earnings per share for the fourth quarter 2018 reflect the effect of a loss in other income of $6.8 million, which resulted primarily from the impact of unrealized losses in our equity investment portfolio arising from u.s. equity market volatility during the quarter. non-gaap earnings per share exclude stock-based compensation expense, acquisition related amortizations and other expenses, restructuring expenses, gain on bargain purchase of a business and the impact of the tax cuts and jobs act in 2017. the reconciliation between gaap earnings per share and non-gaap earnings per share is in the table provided. adtran chairman and chief executive officer tom stanton stated, “operating results for the final quarter of 2018 came in largely as expected with strong international revenue growth and an increase in u.s. tier 1 sales allowing the company to offset its normal sequential seasonal trend. international revenue contributed 46.6% of the total with strong contributions from the asia-pacific and latam regions. our customer engagements increased, centering around our comprehensive portfolio of software-defined access, 10g solutions and g.fast products. during the quarter, we also acquired smartrg, a leading provider of open-source connected home platforms and cloud services, whose software approach to delivering both hardware-based and virtualized solutions will enable us to extend the value of our open, programmable and web scalable mosaic cloud platform. looking forward, we believe that adtran is well positioned to leverage our customer, geographic and product diversity momentum as service providers look to accelerate service velocity and scale networks in size, scope and service capabilities.” the company also announced that its board of directors declared a cash dividend for the fourth quarter of 2018. the quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on february 7, 2019. the ex-dividend date is february 6, 2019, and the payment date is february 21, 2019. the company confirmed that it will hold a conference call to discuss its fourth quarter results thursday, january 24, 2019, at 9:30 a.m. central time. adtran will webcast this conference call. to listen, simply visit the investor relations site at www.investors.adtran.com approximately 10 minutes prior to the start of the call and click on the conference call link provided. an online replay of the conference call, as well as the text of the company's earnings release, will be available on the investor relations site approximately 24 hours following the call and will remain available for at least 12 months. for more information, visit www.investors.adtran.com or via email at investor.relations@adtran.com. at adtran, we believe amazing things happen when people connect. from the cloud edge to the subscriber edge, we help communications service providers around the world manage and scale services that connect people, places and things to advance human progress. whether rural or urban, domestic or international, telco or cable, enterprise or residential—adtran solutions optimize existing technology infrastructures and create new, multi-gigabit platforms that leverage cloud economics, data analytics, machine learning and open ecosystems—the future of global networking. find more at adtran, linkedin and twitter. this press release contains forward-looking statements which reflect management’s best judgment based on factors currently known. however, these statements involve risks and uncertainties, including the successful development and market acceptance of new products, the degree of competition in the market for such products, the product and channel mix, component costs, manufacturing efficiencies, and other risks detailed in our annual report on form 10-k for the year ended december 31, 2017. these risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release. condensed consolidated balance sheet (unaudited) (in thousands) consolidated statements of income (unaudited) (in thousands, except per share data) (1) (1) (1) assumes exercise of dilutive stock options calculated under the treasury stock method. consolidated statements of comprehensive income (unaudited) (in thousands) consolidated statements of cash flows (unaudited) (in thousands) adjustments to reconcile net income to net cash provided by operating activities: supplemental information restructuring expenses (unaudited) (in thousands) restructuring expense was recorded in the following consolidated statements of income categories for the three and twelve months ended december 31, 2018 and 2017: supplemental information acquisition related expenses, amortizations and adjustments (unaudited) (in thousands) on august 4, 2011, we closed on the acquisition of bluesocket, inc., on may 4, 2012, we closed on the acquisition of the nokia siemens networks broadband access business (nsn bba), on september 13, 2016, we closed on the acquisition of commscope’s active fiber business (commscope), on march 19, 2018, we closed on the acquisition of sumitomo electric lightwave corp.’s north american epon business (sumitomo), and on november 30, 2018, we closed on the acquisition of smartrg inc. (smartrg). acquisition related expenses, amortizations and adjustments for the three and twelve months ended december 31, 2018 and 2017 for all five transactions are as follows: adjustments adjustments, net of tax the acquisition related expenses, amortizations and adjustments above were recorded in the following consolidated statements of income categories for the three and twelve months ended december 31, 2018 and 2017: adjustments included in operating expenses adjustments adjustments, net of tax supplemental information stock-based compensation expense (unaudited) (in thousands) rsus and restricted stock reconciliation of gaap earnings (loss) per share, diluted, to non-gaap earnings (loss) per common share, diluted (unaudited) (1) table may not foot due to rounding
