Tom Stanton expects G.fast sales to nbn Australia and AT&T for incumbent area use. At least one and possibly two large cablecos are buying 10 gig PON gear and he expects NG-PON2 revenue before the end of the year. But Century still isn't spending and Deutsche Telekom is cutting back.
Things are so tight they've cut back on R & D, dangerous while their largest international competitor, Huawei, is increasing R&D rapidly. The quarterly loss was less than in Q1 but over $10M before an income tax refund. Adtran is a respected company struggling in a tough market. Adtran and Calix made an early move to SDN/NFV that is starting to pay off.
The income statement is below.  
 
 
 
 
 
 

Consolidated Statements of Income 
(Unaudited) 
(In thousands, except per share data)

 
          Three Months Ended     Six Months Ended
          June 30,     June 30,
          2018     2017     2018     2017
Sales                                    
Products         $ 115,063       $ 155,543       $ 220,316       $ 299,140  
Services           12,985         29,130         28,538         55,812  
Total Sales           128,048         184,673         248,854         354,952  
Cost of Sales                                    
Products           69,629         79,663         138,241         156,327  
Services           8,423         20,384         20,884         40,290  
Total Cost of Sales           78,052         100,047         159,125         196,617  
Gross Profit           49,996         84,626         89,729         158,335  
Selling, general and administrative expenses           32,080         34,706         65,611         69,495  
Research and development expenses           30,729         33,557         63,578         65,528  
Operating Income (Loss)           (12,813 )       16,363         (39,460 )       23,312  
Interest and dividend income           913         972         1,779         1,905  
Interest expense           (132 )       (137 )       (264 )       (278 )
Net realized investment gain           990         1,390         893         1,860  
Other expense, net           (217 )       (719 )       (274 )       (585 )
Gain on bargain purchase of a business                           11,322          
Income (loss) before provision for income taxes           (11,259 )       17,869         (26,004 )       26,214  
(Provision) benefit for income taxes           3,589         (5,468 )       7,520         (7,162 )
Net Income (Loss)         $ (7,670 )     $ 12,401       $ (18,484 )     $ 19,052  
                                     
Weighted average shares outstanding – basic           47,856         48,036         48,043         48,232  
Weighted average shares outstanding – diluted           47,902         48,413         48,091         48,675  
                                     
Earnings (loss) per common share – basic         $ (0.16 )     $ 0.26       $ (0.38 )     $ 0.40  
Earnings (loss) per common share – diluted         $ (0.16 )     $ 0.26       $ (0.38 )     $ 0.39  
 

(1) Assumes exercise of dilutive stock options calculated under the treasury stock method.