Advanced Fibre Communications (AFCI) rose modestly late Monday after posting a third-quarter profit.
The Petaluma, Calif., maker of networking gear also called a Nov. 30 shareholders meeting to ratify its acquisition by rival
. Advanced Fibre said shareholders of record as of today will vote at the meeting. Tellabs agreed this summer to acquire AFC, but later reduced the amount it will pay, owing in part to a slowdown in AFC's business.
The slowdown appeared to continue Monday, as Advanced Fibre posted a modest sequential profit rise but fell short of sales goals.
For the third quarter ended Sept. 30, AFC earned $17.3 million, or 19 cents a share. That's up from $9.3 million, or 11 cents a share, a year ago.
On a so-called adjusted basis, excluding certain costs, third-quarter earnings were 7 cents a share, up from 6 cents in the second quarter but down from the year-ago 11 cents. The adjusted EPS beat the Thomson First Call analyst consensus by 2 cents, however.
Sales rose to $120 million from $85 million a year ago. The latest quarter represented a slight gain from second-quarter sales of $118 million, but fell about $5 million short of the analyst consensus.
"Although our revenue was slightly below our previous guidance, we exceeded our operating profit goals in a challenging spending environment," CEO John Schofield said in an earnings release Monday.
AFC makes broadband gear used by phone companies to offer fast connections via digital subscriber line, or DSL, connections. It also sells optical networking equipment for deeper fiber extensions into communities.
Shares rose 46 cents, or 3%, to $15.90 in after-hours trading Monday.