Analyst Sees Adtran SBC Win
"Our information indicates Adtran has now been selected for this contract," writes Noel in a note sent to clients yesterday. "While it appears to us SBC has now selected a supplier for this contract, we believe the actual implementation phase will not begin until mid-fourth quarter 2004, with a potential positive revenue impact for Adtran occurring later during Q1:05."
The Extended Reach DSL RFP, detailed by Light Reading in July, was SBC's approach to providing triple-play services without requiring an extensive fiber-to-the-premises buildout (see SBC RFP Refreshes Remotes).
The RFP asked vendors for a 24-port DSLAM with an enclosure that's hermetically sealed and submersible in up to four feet of water for a three-day period. It was to be mountable "to pole, strand, manhole, SAI cabinet, pedestal, pad, and vaults." The box was required to have a minimum of 24 ADSL output ports, but the RFP also asked vendors for pricing and availability of 48-, 72-, and 96-port DSLAMs.
"We believe ADTN is on track to meet or exceed our current September quarter estimates for $123.3 million in revenue and $0.28 in EPS [earnings per share]," writes Noel. "For the full year 2004, we are currently estimating revenues of $488.4 million and $1.08 in EPS and for year end 2005, we are looking for $594 million in revenues and $1.30 in EPS."
Adtran shares were up $0.22 (0.82%) to $27 in late morning trading on Wednesday.
An SBC representative could not be reached for comment.
— Phil Harvey, News Editor, Light Reading
For further education, visit the archives of related Light Reading Webinars: