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ADTRAN Warns of Tier 1 Slowdown, but Other Biz Grows 20% in Q3![]() Excluding Deutsche Telekom and Telmex, which took a purchasing hiatus in Q3, ADTRAN's business grew 20% over the prior quarter and generated an estimated $114 million, the company reported on Wednesday. DT had cautioned ADTRAN earlier this year about spending cuts in the second half of 2019. Telmex encountered time delays generally associated with large infrastructure investments. Both operators remain ADTRAN customers, according to the vendor and public statements from DT and Telmex. Earnings per share for the quarter, assuming dilution, will be about $0.96. Non-GAAP earnings per share for the quarter, with dilution, should be a loss of approximately $0.06. ADTRAN expects a one-time, non-cash, valuation allowance of about $37 million, recorded to income tax expenses, it said in these preliminary earnings. In Q2, ADTRAN reported more than $177 million in cash and securities, net of debt.
ADTRAN shares lost nearly 20% of their value in one day. The stock closed down $2.10 (-19.25%) to $8.81 in normal trading on Thursday. "Our revenue this quarter has been significantly impacted by a pause in shipments to a Tier 1 customer in Latin America and the continued slowdown in the spending at an international Tier 1 customer. Although we expect our Latin American customer sales to rebound, our current visibility regarding timing is limited," said ADTRAN CEO Tom Stanton, in a statement. "For the international Tier 1 customer, we expect that sales should resume with the new capital cycle in 2020." The company predicts 4Q19 revenue will be flat or down slightly from the third quarter. ADTRAN plans an earnings call on Oct. 31. Like its competitors, ADTRAN has been successfully wooing smaller operators, coops, municipalities and -- in ADTRAN's case -- MSOs. CenturyLink was a 10% customer last quarter and cablecos represent a healthy opportunity for the vendor, wrote Michael Genovese, managing director at MKM Partners, in an advisory, where he downgraded the stock from Fair to Neutral. "ADTRAN may potentially have three meaningful large cable MSO customers in 2020, which is a fairly new vertical for the company, Genovese wrote. "There are wireline access projects at the two largest US telcos that could be funded in 2020, including wireline products used for wireless backhaul at Verizon. DT spending is expected to come back in early 2020, and Telmex spending could come back at any time." But, he cautioned, at least in the next year or two, fixed wireless access solutions could overtake demand for wireline fiber or copper broadband, and mmWave technologies may command the majority of operators' capex due to the 5G investment lovefest. Related posts:
— Alison Diana, Editor, Broadband World News. Follow us on Twitter or @alisoncdiana. (Home page art: Stephen Dawson/ Unsplash.
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In a flurry of activity throughout the week, Donald (DJ) LaVoy, Deputy Under Secretary for Rural Development at the US Department of Agriculture, and his team spent about $145.8 million in the non-urban or suburban areas of seven states.
Calix reported revenue of $120.19 million – up 4% – in Q4 2019, putting a bounce in the step of company president and CEO Carl Russo and a shine to Calix's ongoing transition from hardware vendor to a provider of platforms enabled by cloud, APIs and subscriber experience.
Looking to curtail e-waste and improve the bottom line, BT will require customers to return routers and set-top boxes, although subscribers will not have to pay a fee when they receive regular broadband equipment.
The industry standards organization is looking to ease operator pain from residential WiFi, while it also sees initiatives in connected home and other projects bear fruit.
Deploying DOCSIS 3.1 across its entire footprint gave Rogers Communications the ability to offer speeds of up to 1 Gbit/s,
contributing to a broadband segement that generated about 60% of the Canadian operator's $3.05 billion (US) in Q4 cable earnings.
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Thursday, December 17, 2020
12:00 p.m. New York / 5:00 p.m. London Today’s access network architecture is under mounting pressure due to a continued surge in the number of connected devices, a proliferation of bandwidth-intensive customer applications and dramatic shifts in usage patterns related to the pandemic, such as work-from-home and e-learning. Learn why now is the right time for cable operators to build greenfield networks or expand their existing networks with 10G PON, arming customers with high-speed symmetrical broadband. Gain a clear understanding of the drivers impacting the access network and the various approaches being considered to deliver higher speed services. Plus, find out the best practices that operators are employing as they leverage the latest in passive optical technology to future-proof their networks. Topics to be covered include:
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