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ADTRAN, Inc. Announces Preliminary Third Quarter 2019 Revenue and Earnings Estimates

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HUNTSVILLE, Ala.–(BUSINESS WIRE)–ADTRAN, Inc. (NASDAQ: ADTN) (“ADTRAN” or the “Company”) announced today preliminary estimates of certain financial results for the third quarter ended September 30, 2019. Based upon preliminary information, revenue for the quarter is expected to be approximately $114 million. Earnings per share for the quarter, assuming dilution, is expected to be a loss of approximately $0.96. Non-GAAP earnings per share for the quarter, assuming dilution, is expected to be a loss of approximately $0.06. Earnings per share is expected to be affected by a one-time, non-cash, valuation allowance of approximately $37 million, that will be recorded to income tax expense in the Company’s consolidated income statement to reduce the carrying value of the Company’s deferred tax assets.

ADTRAN Chief Executive Officer Tom Stanton stated, “Our revenue this quarter has been significantly impacted by a pause in shipments to a Tier 1 customer in Latin America and the continued slowdown in the spending at an international Tier 1 customer. With the exception of these two large customers, revenues generated from the rest of our business grew 20% over the previous quarter. Although we expect our Latin American customer sales to rebound, our current visibility regarding timing is limited. For the international Tier 1 customer, we expect that sales should resume with the new capital cycle in 2020.”

Our current expectation for revenue for the fourth quarter of 2019, is that it will be flat to slightly down from the third quarter. Additionally, we plan for our non-GAAP operating expenses during the fourth quarter to be approximately 10% below our second quarter non-GAAP expense rate.

In connection with our confirmation at the end of the third quarter of the extent of the decline in revenue during the quarter (which fell below our expectations) and management’s current expectations for revenue in the fourth quarter of 2019, we are establishing a valuation allowance against our deferred tax assets. The deferred tax assets represent timing differences in the recognition of certain tax benefits for accounting and income tax purposes, including the expected value of future tax savings that will be available to offset future taxable income through the Company’s net operating loss carryforwards. In future periods, the Company may be able to reduce some or all of the valuation allowance upon a determination that it will be able to realize such tax savings, thereby reducing its future tax liability and recognizing an income tax benefit within the consolidated income statement.

Non-GAAP earnings per share excludes the effect of the valuation allowance, restructuring expenses, stock-based compensation expenses, asset impairments, amortization of losses related to the Company’s pension plan, and acquisition-related expenses, amortizations and adjustments.

The Company confirmed that it will hold a conference call to discuss its third quarter results Thursday, October 31, 2019, at 9:30 a.m. Central Time. ADTRAN will webcast this conference call. To listen, simply visit the Investor Relations site at www.investors.adtran.com approximately 10 minutes prior to the start of the call and click on the conference call link provided.

An online replay of the conference call, as well as the text of the Company’s earnings release, will be available on the Investor Relations site approximately 24 hours following the call and will remain available for at least 12 months. For more information, visit www.investors.adtran.com or via email at investor.relations@adtran.com.

At ADTRAN, we believe amazing things happen when people connect. From the cloud edge to the subscriber edge, we help communications service providers around the world manage and scale services that connect people, places and things to advance human progress. Whether rural or urban, domestic or international, telco or cable, enterprise or residential—ADTRAN solutions optimize existing technology infrastructures and create new, multi-gigabit platforms that leverage cloud economics, data analytics, machine learning and open ecosystems—the future of global networking. Find more at ADTRAN, LinkedIn and Twitter.

This press release contains forward-looking statements which reflect management’s best judgment based on factors currently known. However, these statements involve risks and uncertainties, including the degree to which sales to the Latin American Tier 1 customer and international Tier 1 customer rebound and the timing thereof, whether we will be able to reduce some or all of the valuation allowance against our deferred tax assets in future periods, the successful development and market acceptance of new products, the degree of competition in the market for such products, the product and channel mix, component costs, manufacturing efficiencies, and other risks detailed in our annual report on Form 10-K and Form 10-K/A for the year ended December 31, 2018 and our quarterly reports on Form 10-Q for the quarters ended March 31 and June 30, 2019. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

Additionally, the financial measures presented herein are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with quarter end adjustments. Any variation between the Company’s actual results and the preliminary financial information set forth herein may be material.

To provide additional transparency, we have disclosed estimated non-GAAP net income (loss) and earnings (loss) per share – diluted, which has been reconciled to estimated net income (loss) and earnings (loss) per share – diluted as reported based on Generally Accepted Accounting Principles in the United States (U.S. GAAP). This non-GAAP measure excludes certain items which management believes are not reflective of the ongoing operating performance of the business. We believe this information is useful in providing period-to-period comparisons of the results of our ongoing operations. Additionally, this measure is used by management in our ongoing planning and annual budgeting processes. The presentation of non-GAAP net income (loss) and non-GAAP earnings (loss) per share- diluted, when combined with the U.S. GAAP presentation of net income (loss) and earnings (loss) per share- diluted is beneficial to the overall understanding of the ongoing operating performance of the Company.

This measure is not in accordance with, or an alternative for, U.S. GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under U.S. GAAP. Our calculation of non-GAAP net income (loss) and non-GAAP earnings (loss) per share – diluted may not be comparable to similar measures calculated by other companies.

Reconciliation of Net Income (Loss) and Earnings (Loss) per Common Share – Basic and Diluted to Non-GAAP

Net Income (Loss) and Non-GAAP Earnings (Loss) per Common Share – Basic and Diluted

(Unaudited)

     

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2019

 

2018

 

 

2019

 

2018

Net Income (Loss)

 

$

 

(46,027

)

 

$

 

7,589

 

 

$

 

(41,262

)

 

$

 

(10,895

)

Acquisition related expenses, amortizations and adjustments

 

 

1,343

 

 

 

926

 

 

 

4,346

 

 

 

2,651

 

Stock-based compensation expense

 

 

1,871

 

 

 

1,640

 

 

 

5,184

 

 

 

5,243

 

Restructuring expenses

 

 

1,195

 

 

 

261

 

 

 

4,658

 

 

 

7,236

 

Pension expense(1)

 

 

198

 

 

 

61

 

 

 

600

 

 

 

187

 

Asset impairment

 

 

3,872

 

 

 

 

 

 

3,872

 

 

 

 

Valuation allowance

 

 

37,055

 

 

 

 

 

 

37,055

 

 

 

 

Gain on contingency

 

 

 

 

 

 

 

 

(1,230

)

 

 

 

Settlement income

 

 

 

 

 

 

 

 

(746

)

 

 

 

Gain on bargain purchase of a business

 

 

 

 

 

 

 

 

 

 

 

(11,322

)

Tax effect of adjustments to net income (loss)

 

 

(2,228

)

 

 

(624

)

 

 

(4,466

)

 

 

(3,657

)

Non-GAAP Net Income (Loss)

 

$

 

(2,721

)

 

$

 

9,853

 

 

$

 

8,011

 

 

$

 

(10,557

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

47,824

 

 

 

47,810

 

 

 

47,803

 

 

 

47,927

 

Weighted average shares outstanding – diluted

 

 

47,824

 

 

 

47,834

 

 

 

47,803

 

 

 

47,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share – basic

 

$

 

(0.96

)

 

$

 

0.16

 

 

$

 

(0.86

)

 

$

 

(0.23

)

Earnings (loss) per common share – diluted

 

$

 

(0.96

)

 

$

 

0.16

 

 

$

 

(0.86

)

 

$

 

(0.23

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP earnings (loss) per common share – basic

 

$

 

(0.06

)

 

$

 

0.21

 

 

$

 

0.17

 

 

$

 

(0.22

)

Non-GAAP earnings (loss) per common share – diluted

 

$

 

(0.06

)

 

$

 

0.21

 

 

$

 

0.17

 

 

$

 

(0.22

)

   

(1) Includes amortization of actuarial losses related to the Company’s pension plan for employees in certain foreign countries.

 

Contacts

Investor Relations

Rhonda Lambert

256-963-7054

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

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Denodo Announces DataFest 2019 in London: Third Annual Conference in Europe for Data Professionals Provides Valuable Insights on Machine Learning, Cloud and Advanced Analytics

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Conference welcomes hundreds of data enthusiasts, customers, partners and subject matter experts to discuss the future of data management in the digital age. The event can be attended in person or online by connecting to the live stream.

LONDON–(BUSINESS WIRE)–#AIDenodo, the leader in data virtualization, announced its 3rd annual user conference in Europe, Denodo DataFest, on 23rd October in London. In this conference, attendees will learn strategies on how to leverage data virtualization to enable highly flexible, agile, and powerful BI architectures that are paving the way to multi-cloud adoption. The event can be attended in person or online by connecting to the live stream.

“I am looking forward to speaking at the Denodo DataFest 2019 user conference and am excited to share how we are using data virtualization to enable self-service BI for business users at Festo,” said Diethard Frank, IT Product Manager, Big Data & AI Services at Festo. “I’m excited to share our experience and lessons learned that will hopefully help other organizations think about how to leverage modern technology approaches to truly innovate and uncover hidden value from their data.”

Through this immersive conference, Denodo is bringing together visionary leaders and technical experts to help redefine how data is reshaping the modern enterprise and driving digital business.

“Today, businesses need a holistic view of data across the enterprise from all data sources—on premises, in the cloud, and streaming—to gain deeper insights into customers, new market opportunities, and competition,” said Ravi Shankar, Sr. Vice President and Chief Marketing Officer at Denodo. “Business success demands agile, real-time data integration—to accelerate the time-to-results, and hence the time-to-revenue. DataFest brings together some of our most trusted customers, partners, and industry thought leaders to help address these critical challenges, while setting the course for the future of data driven intelligence.”

Sessions will feature actionable insight from analyst Rick van der Lans and partners including Wipro, Square IT Services, UST Global, HCL and others who will participate in panel discussions. Attendees will also hear real world insights from Festo, NHS Scotland, St. James’s Place and Landsbankinn, to name a few, who will share how they leveraged data virtualization to enable enhanced analytics and agility.

“Organizations moving towards cloud and migrating Personnel Identification Information (PII) and other sensitive and critical enterprise information will face challenges. Data services best practices will help resolve most of these pain points,” said Rajat Sinha, Senior Director Alliances, Wipro Limited. “I am excited to talk about our partnership with Denodo for modern data virtualization solutions that will enable companies to gain maximum benefits from cloud initiatives in form of agility and cost savings.”

“At UST Global, we help our Fortune 500 customers get insightful, actionable and explainable insights which drive business outcomes at speed, by integrating data engineering and engineering analytics,” said Niranjan Ram, CTO of UST Global. “As a trusted Denodo partner, we look forward to presenting a practitioner’s perspective, focusing on the challenges of managing a data science pipeline and improving productivity of our data scientists.”

“Denodo DataFest is the ideal event for everybody interested in data virtualization, data management and data architecture. It’s always a pleasure to be there and exchange knowledge with the people from Denodo and all their customers and partners,” said Bas van der Peet, Business Unit Manager at Axians.

Please Tweet: Attend #DenodoDataFest on 23rd Oct to learn how #datavirtualization can support the journey to #cloudcomputing #multicloudadoption #machinelearning #AI #analytics. Register: https://www.denododatafest.com/EMEA

About Denodo

Denodo is the leader in data virtualization providing agile, high performance data integration, data abstraction, and real-time data services across the broadest range of enterprise, cloud, big data, and unstructured data sources at half the cost of traditional approaches. Denodo’s customers across every major industry have gained significant business agility and ROI by enabling faster and easier access to unified business information for agile BI, big data analytics, Web, and cloud integration, single-view applications, and enterprise data services. Denodo is well-funded, profitable, and privately held. For more information, visit www.denodo.com or call +1 877 556 2531 / +44 (0) 20 7869 8053.

Contacts

Gemma Rowlan

+44 (0) 20 7608 8359

gemma.rowlan@hotwireglobal.com

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Dale Robinson Appointed Chief Operating Officer of HealthTrust Europe

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BIRMINGHAM, England–(BUSINESS WIRE)–HealthTrust Europe, a trusted group purchasing organisation and supply chain partner for healthcare providers, announced the appointment of Dale Robinson as chief operating officer. Robinson will lead the strategic direction of the group purchasing organisation and oversee programmes to further integrate providers and suppliers in advancing clinical excellence.

“With years of success working with the National Health Service (NHS), Dale brings a unique perspective to broaden our engagement with providers across the UK,” stated Ed Jones, president and CEO of HealthTrust. “He will lead a team of supply chain professionals focused on improving service offerings across public and private sector Trusts, hospitals, and outpatient treatment and diagnostic centres thereby strengthening their ability to serve patients and communities.”

HealthTrust Europe manages over £1 billion of healthcare spend in the UK, negotiating superior value and terms on behalf of member organisations which include more than 280 public and private acute care hospitals and non-acute sites of care.

A qualified solicitor, Robinson joined HealthTrust Europe as a legal adviser in 2012 specialising in public procurement law. He has played an instrumental role in the expansion of the company’s UK operation including serving as vice president of operations, and chief legal and ethics officer.

About HealthTrust Europe

HealthTrust Europe is committed to strengthening provider performance and clinical excellence through an aligned membership model and the delivery of total spend management advisory solutions that leverage our operator experience, scale and innovation. HealthTrust Europe operates as the UK arm of HealthTrust, one of the leading healthcare improvement organisations in the United States representing over 1,600 hospitals and managing $42 billion of contracted spend annually. An affiliate of HCA Healthcare, HealthTrust Europe is committed to supporting the delivery of compassionate, efficient, quality and patient-focused healthcare in the communities we serve. For more information, visit http://www.healthtrusteurope.com.

About HCA Healthcare

Nashville, Tennessee-based HCA Healthcare is one of the leading providers of healthcare services in the U.S., comprised of 184 hospitals and approximately 2,000 sites of care, including surgery centers, freestanding ERs, urgent care centers, and physician clinics, in 21 states and the United Kingdom. With its founding in 1968, HCA Healthcare created a new model for hospital care in the United States, using combined resources to strengthen hospitals, deliver patient-focused care and improve the practice of medicine. HCA Healthcare is a learning healthcare system that uses its more than 31 million annual patient encounters to advance science, improve patient care and save lives.

Contacts

Vivek Jain

+44 (0) 7887 961 549

vivek.jain@htepg.com

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HID Global Completes Acquisition of De La Rue’s Citizen Identity Business

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AUSTIN, Texas–(BUSINESS WIRE)–#HID–HID Global®, a worldwide leader in trusted identity solutions, today announced that it has completed the acquisition of the international identity solutions business of De La Rue (LSE:DLAR), the world’s largest commercial issuer of banknotes and passports. The De La Rue business will be merged with HID’s citizen identity solutions portfolio, broadening HID Global’s leadership position, extending its capabilities to scale and assemble government-issued citizen IDs, and expanding the value delivered to customers.

HID Global and the De La Rue international identity solutions business share the common goal of helping governments fulfill their e-government initiatives today and in the future by converging physical and digital identities to increase efficiency, security and flexibility,” said Stefan Widing, President and CEO, HID Global. “The acquisition sets the stage for HID to leverage the decades-long relationships De La Rue has had as a prime citizen ID supplier providing HID’s innovative solutions to governments seeking to modernize. From making it possible for citizens to use mobile IDs with their smartphones in everyday life to providing travelers with a more secure and convenient passport for border crossing, HID is transforming the citizen experience.”

Today, HID Global’s citizen identification solutions can be found in sixty percent of all government-issued electronic identity projects around the world. HID delivers complete, end-to-end system solutions that meet governmental requirements for national IDs, passports, foreign resident IDs, driver licenses, vehicle registration and other programs.

De La Rue’s direct relationships with ministries of the interior, immigration departments, police departments, and numerous other government entities/agencies will enhance HID’s ability to provide customers with a broader suite of offerings that include mobile IDs, automated verification capabilities, and e-passports with advanced physical and electronic security features.

The addition of the De La Rue citizen ID business also extends HID’s capabilities to assemble secure ID documents from end to end in world-class facilities. It will create new opportunities to apply its design excellence, data analysis services/consultancy, and proven software and systems–including civil registry and vital statistics (CRVS)–to HID’s citizen ID portfolio.

To learn more about the HID Global’s citizen identification offerings, please click here.

About De La Rue

De La Rue’s purpose is to enable every citizen to participate securely in the global economy. As a trusted partner of governments, central banks and commercial organisations, De La Rue provides products and services that underpin the integrity of trade, personal identity and the movement of goods. As the world’s largest designer and commercial printer of banknotes, De La Rue designs, manufactures and delivers banknotes, banknote substrates and security features to customers in a world where currency will continue to be a key part of the developing payments eco-system. De La Rue is the only integrated supplier of both paper and polymer banknotes, and creates security features that ensure banknotes are protected against counterfeiting. De La Rue is the world’s largest commercial designer and printer of passports, delivering national and international identity tokens and software solutions for governments in a world that is increasingly focused on the importance of a legal and secure identity for every individual. De La Rue also creates and delivers secure product identifiers and ‘track and trace’ software for governments and commercial customers alike to help to tackle the challenge of illicit or counterfeit goods and the collection of revenue and excise duties. De La Rue is listed on the London Stock Exchange (LSE:DLAR). For further information visit www.delarue.com

About HID Global

HID Global powers the trusted identities of the world’s people, places and things. We make it possible for people to transact safely, work productively and travel freely. Our trusted identity solutions give people convenient access to physical and digital places and connect things that can be identified, verified and tracked digitally. Millions of people around the world use HID products and services to navigate their everyday lives, and over 2 billion things are connected through HID technology. We work with governments, educational institutions, hospitals, financial institutions, industrial businesses and some of the most innovative companies on the planet. Headquartered in Austin, Texas, HID Global has over 3,000 employees worldwide and operates international offices that support more than 100 countries. HID Global® is an ASSA ABLOY Group brand. For more information, visit www.hidglobal.com.

© 2019 HID Global Corporation/ASSA ABLOY AB. All rights reserved. HID, HID Global, the HID Blue Brick, the logo, and the Chain Design are trademarks or registered trademarks of HID Global, ASSA ABLOY AB, or its affiliates(s) in the US and other countries and may not be used without permission. All other trademarks, service marks, and product or service names are trademarks or registered trademarks of their respective owners.

Contacts

Leah Washington

lwashington@hidglobal.com

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