It is now my pleasure to turn the call over to Mr. Tom Stanton, Chief Executive Officer of ADTRAN. Sir, please go ahead.Thomas R. Stanton Thank you, Josh. Good morning, everyone. Thank you for joining us for our first quarter 2012 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, in more detail, our Q1 results, trends for the second quarter, along with some comments on other areas of focus. This will be followed by Jim's report, and then we will open the call up for questions. As presented in last night's press release, ADTRAN achieved revenues of $134.7 million in the quarter. As we stated in our March prerelease, 2 issues impacted us in the first quarter. The first was a slower than normal start to the seasonal buying pattern at our larger carrier customers. And the second, which had a greater impact, was a delay in both the start and ramp of orders from one of these customers due to new systems implementations. This negatively impacted revenues for the Carrier Networks division in the quarter. Due to the unusual nature of this quarter, I would like to give you more specifics as to the activity we saw. Order activity for the 3 largest domestic carriers had a slow start affecting all product areas, but most notably, Broadband Access and HDSL. During the month of March, we saw an improvement in Broadband Access and more specifically, our Fiber-to-the-Node products in orders and shipments due to the finalization of the systems implementation I previously mentioned. In addition, order rates from all 3 Tier 1 carriers saw improvement. Looking forward into the current period, we expect the activity we saw in March will continue through the second quarter and we will continue with sequential improvements at all 3 Tier 1 carriers. We expect this to materialize as increased shipments in Broadband Access, HDSL and optical products to Tier 1 carriers.
Moving on to Tier 2 carrier customers, the first quarter ended on track versus our original plan. Order rates and shipments continue to build throughout the quarter, matching our expectations for seasonal trends and planned project builds.For Tier 3 customers, again, as expected, we saw an increase in shipments due to Broadband Stimulus awards and earlier market share gains allowing the quarter for this customer segment to track with our original plan. For both our Tier 2 and Tier 3 customers, we expect that order rates and shipments will continue to build momentum in the second quarter as a result of earlier market share gains and increasing shipments related to Broadband Stimulus. International revenues came in stronger than expected, with order momentum in shipments building through the first quarter as well. For our International customers, we expect order activity will continue to increase in the second quarter in all International regions. From a product category perspective, our Broadband Access category came in slightly below Q1 last year as a result of the issues discussed earlier. However, during the quarter, we saw the benefit of continuing International growth, with strong order flow and revenue contributions from Fiber-to-the-Node products. During the quarter, we added over 25 new Total Access 5000 carrier customers globally, tracking the performance we have seen over the last several quarters. Also during the quarter, we saw our first shipments of Optical Network Edge products to a Tier 2 carrier. Our Internetworking category grew 25% over the prior year, as we continue to refine our expanding domestic dealer base and we benefited from market share gains with service providers. Also during the quarter, we saw awards from both Tier 1 and Tier 2 carrier customers as they roll out cloud-based hosted services, which included our IP gateways, routers, switches and IP PBX products. In addition, we were able to obtain our first Tier 1 carrier certification for our Bluesocket wireless LAN products, with several more carriers at different points in their approval process. Read the rest of this transcript for free on seekingalpha.com