Reuters: Global Markets: Adtran shares down on weak results

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Adtran shares down on weak results Jul 11th 2012, 14:18 Wed Jul 11, 2012 10:18am EDT (Reuters) - Shares of Adtran Inc (ADTN.O) fell as much as 13 percent on Wednesday, after the network equipment maker reported second-quarter results below analysts' estimates citing weak demand. Network gear makers have been facing slowing demand for their products this year as telecom carrier customers cut spending amid a sluggish U.S. economy and weakness in Europe. "We are hearing that Verizon Communications Inc (VZ.N) and AT&T Inc (T.N) are now requiring more stringent return on investment metrics in order to approve incremental equipment purchases on their wireline networks," Mizuho Securities USA analyst Joanna Makris said in a note. Adtran, which counts AT&T and Verizon among its top customers, earned 38 cents per share, excluding items, for the quarter. Analysts expected adjusted earnings of 35 cents per share, according to Thomson Reuters I/B/E/S. The company's quarterly revenue was $184 million, below analysts' expectations of $190.3 million. Shares of Adtran, whose rivals include Alcatel-Lucent SA (ALU.N), Cisco Systems Inc (CSCO.O), Ciena Corp (CIEN.O) and Juniper Networks Inc (JNPR.N), were down $2.95 at $24.24 on the Nasdaq in early trade. The stock, which has lost a third of its value in the last one year, touched a two-year low of $23.65 earlier in the session. (Reporting by Shubham Singhal in Bangalore; Editing by Joyjeet Das) Link this Share this Digg this Email Reprints

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