It's now my pleasure to turn the conference over to Mr. Tom Stanton, Chief Executive Officer of ADTRAN. Please go ahead, sir.
Thomas R. Stanton
Thank you for joining as for our second quarter 2012 conference call. With me this morning is Jim Matthews, Senior Vice President and Chief Financial Officer. I'd like to begin this morning by discussing some details on our Q2 results, including our thoughts on the spending environment and its impact on our near-term outlook.
As you can derive from our press release issued last night, the spending environment in the markets we address deteriorated in the second quarter, with the most significant changes affecting our domestic Tier 1 carrier customers and several areas served by our Enterprise products division.During the quarter, we achieved revenues of $184 million, and if we exclude our recently acquired NSN BBA business, revenues were $161.4 million. The $161.4 million represents a sequential increase of 19.8% for our organic business but a year-over-year decrease of 12.4%. Our acquired business came in at $22.6 million in range with our expectations. In total, our CN division had organic revenues of $130.1 million, again, in line with our expectations. During the quarter, we saw the expected acceleration of our Tier 1 Fiber-to-the-Node build-out and the resumption of planned activities in the Tier 2 and Tier 3 markets. However, we experienced a heightened sense of consciousness and budget uncertainty with both large and small carriers, which resulted in project delays and an uneven order flow. We are confident that our market position remains strong with no meaningful market share loss, where we have incumbency, and we continue to add new customers at a rate consistent with our performance over the last 2 years. The macro environment impacted our Enterprise division, and more importantly, our Internetworking products, which grew 6% year-over-year, the smallest increase since the first quarter of 2009. The impact was felt across nearly all product areas with the exception of our virtual wireless LAN segment, which continued to build strength with both resellers and carriers. From a channel perspective, only our reseller base showed growth, a likely result of our increasing focus in this area.