Thomas R. StantonThank you, Charnay. Good morning, everyone. Thank you for joining us for our third quarter 2011 conference call. With me this morning is Jim Matthews, Senior Vice President and Chief Financial Officer. I would like to begin this morning by discussing our third quarter performance, along with some comments on what we expect for the fourth quarter. As stated in our press release, ADTRAN set its sixth all-time consecutive revenue record. This performance was driven by our 3 main product areas, which, combined, grew 63% over the same period last year. Our company continued to benefit from increasing demand for higher speed services in both business and residential markets and the continued migration towards IP services. This, coupled with a continuing fiber buildout for mobile infrastructure upgrades, and an increase in demand for our products outside the U.S. enabled the company to achieve $192.2 million in revenues for the quarter, an 18% increase over the same period last year. Looking at our business on a product line basis. Broadband Access achieved its seventh consecutive revenue record quarter by growing an impressive 93% over the same period last year to $87 million. A meaningful portion of this growth occurred in Tier 2 and Tier 3 markets and highlights the excellent performance of our sales and engineering teams working in these areas. Over the last 2 years, our employees and partners have done a phenomenal job of introducing ADTRAN to this new market segment and redefining our broader capabilities to our established Tier 2 customers. During the third quarter alone, we received awards from over 20 Tier 3 customers for the Total Access 5000 platform. Looking forward, we believe our momentum in this space will continue to grow, for both broadband stimulus recipients and all others in this area. Broadband Access also performed well with large carriers domestically, as we saw substantial growth in both the Total Access 5000 and Fiber-to-the-Node product areas. Broadband Access also performed well outside of the U.S., with solid growth in the Total Access 5000 area and, as expected, substantial growth in Fiber-to-the-Node over the same period last year. Finally, although off to a slow start, we saw a modest increase in shipments in Q3 for Broadband Stimulus, and we expect to see another modest increase in Q4 with meaningful pickup beginning in 2012.
Moving on to Internetworking. This category achieved its sixth consecutive record revenue quarter, growing an impressive 44% over the prior year. As in recent quarters, we saw growth across all our distribution channels, including various carrier segments and our growing dealer base, where we have continued to increase focus on reseller development.During the quarter, we saw particular strength in routers, EFM and our IP gateway product areas. Also during the quarter, we completed our acquisition of Bluesocket, a leading innovator of virtual wireless LAN solutions. We believe the combination of ADTRAN's Enterprise solutions and Bluesocket's virtual wireless LAN solutions substantially increases our addressable market and allows us to leverage the strength of our channels across multiple markets. Optical Access grew 20% over the prior year, achieving a record revenue level and saw a growth across large and small carriers. This record was a direct result of our market position as carriers continue to invest in mobile backhaul infrastructure upgrades. I think it's also important to note that in the third quarter, we began trial activities with our new optical network edge systems and our 8000 family of Ethernet sell-side gateway products. Moving forward, we see new areas of opportunity as we continue to position our current product offerings and aggressively pursue development efforts to address the rising needs in what will prove to be a very long-term growth market. Read the rest of this transcript for free on seekingalpha.com