Buoyed by strong international sales growth and demand for its services, access and aggregation solutions, ADTRAN reported record first-quarter sales for the first three months of 2017.
Overall, the company's sales reached $170.3 million, up 20% from $142.2 million in the first quarter of 2016, according to its quarterly report. Net income was $6.7 million versus $5 million 12 months ago.
"This growth was led by the strength in our tier one businesses, both domestic and international. Our service and support segment continued a strong year-over-year growth with Q1 2017 revenues of $26.7 million, up 46% compared to the $18.3 million earned in Q1 of 2016, but seasonally down from the $36.2 million reported for the fourth quarter of 2016. Across our revenue categories, access and aggregation revenues for Q1 2017 were $120.1 million, up 28% compared to $93.9 million for Q1 2016 driven by significant growth in our European access business and up slightly compared to $119.7 million for Q4 2017," said Roger Shannon, senior vice president of finance and chief financial officer at
ADTRAN, during an earnings call with analysts.
In addition, customer devices revenues for the quarter were $36.3 million, up 12% compared to $32.4 million in Q1 2016 and up 16% compared with $31.4 million for the fourth quarter of 2016.
"Looking at our revenues geographically, domestic revenues for quarter one 2017 were $119.3 million, up $3 million or 3% from $116.3 million we reported in Q1 last year and down $4.4M or 4% from the $23.7 million in Q4 2016," Shannon said. "Our international revenues for quarter one 2017 were $51 million, up 97% compared to $25.9M in Q1 of last year and up 30% from the $33.4 million in quarter four of 2016."
Much of ADTRAN's European revenue came from the vendor's relationship with Deutsche Telekom, which is heavily investing in vectoring technology, reported Light Reading in January (See Adtran Reaps Rewards of Vectoring Ramp Up at DT.)
While ADTRAN declined to name customers on the call, Chairman and CEO Tom Stanton gave a general update on some of the vendor's tier one customers.
"We're seeing very good, positive momentum in that customer both from a PON basis and a vectoring basis. The G.fast customer we expected... is still expected to start seeing some shipments in the second quarter and then we will see that ramp," he said. "The big ramp will probably be towards the tail-end of the year or the beginning of next year. The other one, which is an NG-PON2 RFP... we have been and still expect to see an award this year, but don't expect to mature rollouts until next year."
— Alison Diana, Editor, UBB2020. Follow us on Twitter @UBB2020 or @alisoncdiana.