Adtran Misses Lowered Bar

Adtran (ADTN) missed lowered sales targets and increased its share buyback plan.

The Huntsville, Ala., phone-gear maker posted adjusted net income late Monday of $22.6 million, or 29 cents a share, on sales of $122.3 million for the quarter ended in June. Those numbers compare with a pro forma profit of 27 cents on revenue of $118.8 million for the year-ago quarter.

The company repurchased 3.3 million shares in the second quarter, which analysts say contributed an additional penny to the adjusted profit. Analysts were looking for a pro forma profit of 28 cents on revenue of $125.6 million in the quarter, according to Thomson First Call.

Adtran's board authorized the repurchase of 5 million shares in addition to the 1.36 million remaining in the 2005 buyback plan.

"Our outlook for the company remains very positive as we continue to build momentum in our primary growth areas," CEO Tom Stanton said in a press release.

Consolidation among phone companies created a drop in demand for new gear as outfits like AT&T ( T), Sprint ( S) and Verizon ( VZ) oversaw mergers and fused together new operations. The wave of deals disrupted orders and caused Adtran to cut guidance in March for the third time this year.

Adtran shares rose a penny to $21.11 in premarket trading Tuesday.

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