ADTRAN Holdings, Inc. ( ADTN Quick Quote ADTN - Free Report) reported healthy second-quarter 2022 results, wherein both the bottom and the top line beat the Zacks Consensus Estimate. Net Income
On a GAAP basis, net income in the June quarter was $2.1 million or 4 cents per share compared with $5.1 million or 10 cents per share in the prior-year quarter. The year-over-year decline despite higher revenues was primarily due to higher cost of revenues and loss on net investments.
Non-GAAP net income was $9.7 million or 19 cents per share compared with $8.1 million or 16 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 12 cents.
Quarterly total revenues grew to $172 million from $143.2 million in the prior-year quarter, driven by the increasing demand for ADTRAN’s network solutions and fiber broadband products. The top line beat the consensus estimate of $170 million. The company is experiencing solid demand, underscored by strong bookings in the quarter.
Revenues from Network Solutions were $156 million compared with $125.4 million in the year-ago quarter. ADTRAN’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide a better customer experience. The company recorded healthy demand trends driven by the accelerated expansion of fiber-to-the-home networks, upgrades to in-home WiFi connectivity, and the adoption of cloud-based automation tools. The solid quarterly performance was further buoyed by improved customer diversification and end-to-end fiber broadband solutions. However, Services and Support revenues were $16 million, down from $17.8 million. Other Details
Total cost of sales increased from $80.6 million to $109.5 million. GAAP gross profit came in at $62.5 million compared with $62.7 million in the prior-year quarter for respective margins of 36.3% and 43.8%. Operating income in the quarter was $8.1 million compared with $3.9 million in the year-ago quarter.
Cash Flow & Liquidity
During the first six months of 2022, ADTRAN used $5.9 million of cash in operating activities against $18.2 million cash flow generated in the prior-year period. As of Jun 30, 2022, the company had $43.4 million in cash and cash equivalents with $26 million of deferred compensation liability.
ADTN currently has a Zacks Rank #2 (Buy). You can see
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