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Adtran Cites Lumps and Bumps in Q3

Telecom equipment vendor Adtran Inc. (Nasdaq: ADTN) this morning was out with disappointing Q3 results and had little to say that would clarify things going forward other than that things "should" get better.

To hear Adtran Chairman and CEO Mark Smith tell it, the quarter was characterized by unpredictable, lumpy sales.

"When you take the lumpiness we don't associate it with anything other than the fact that it's lumpy," said Smith inscrutably on this morning's conference call.

Adtran, which lowered its Q3 estimate last week, reported income of $18.8 million, up from $17.2 million in the same period last year. But revenues and earnings fell short of estimates. It blamed the revenue shortfall on bookings that failed to occur during the second half of September, particularly for integrated access devices and DSLAMs. Specifically, customers for remote terminal and outside plant DSLAMs were awaiting the availability of new, higher-density ADSL2+ products, according to execs (see Adtran Falls Short in Q3).

Speaking on this morning's conference call, Smith described the problem as a "timing situation" and said that some of the bookings may be pushed into the fourth quarter. However, with the current quarter only a few days old, he added that it was too early to make that call. He also stressed that the DSL market continues to be "lumpy."

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