Ethernet equipment

Adtran vs. Cisco Earnings

NOON -- To preface today's Cisco Systems Inc. (Nasdaq: CSCO) earnings announcement, Adtran Inc. (Nasdaq: ADTN) sent us a note about its own earnings.

The company put up a good second quarter, announced last month, with 28 percent growth in its Carrier Networks Division compared with the previous year. Enterprise grew 37 percent. Adtran's PR folks interpret the numbers as a sign the company's nibbling at Cisco's main markets, which might be a bit of a stretch. (See Adtran Reports Q2.)

Of course, Adtran also scores high in the category of Not Being Cisco. Revenues for the second quarter were $150 million, probably around what Cisco spends on coffee creamer each week.

So, Adtran isn't going to get a Nielsen-worthy audience for its earnings, especially during the summer. But a cheap mention on a blog? Sure, why not?

By the way, analyst George Notter of Jefferies & Company Inc. wrote at the time that the quarter was good and the products were showing promise, but that the stock had run up too much to recommend. So, there's such a thing as too much good news.

— Craig Matsumoto, West Coast Editor, Light Reading

DCITDave 12/5/2012 | 4:27:05 PM
re: Adtran vs. Cisco Earnings

I have to be honest, I mostly read this post was because it had Cisco in the headline.  :)

Pete Baldwin 12/5/2012 | 4:27:05 PM
re: Adtran vs. Cisco Earnings

Made you look.  :)

I just found it amusing that a company would semi-randomly toss its name out there tied to Cisco earnings.  Since I rarely do Cisco earnings preview stories (because, really, what's the point?), I thought I'd get the name out there early this time.

That's not to knock Adtran's quarter, which really was good (and wasn't bolstered directly by stimulus funds - that money still hadn't come in.)

jonglynn 12/5/2012 | 4:27:01 PM
re: Adtran vs. Cisco Earnings

if you're really looking for two great companies that are small but consistently growing—look to Transition Networks or Accedian.  They make better products that typically last much longer than Adtran's (trust me - plus TN has a lifetime warranty).  They seem to make similar low latency products that are build around service level and manageability.  No, I don't work for either, just thought they deserved an honorable mention.

And Better yet, they have yet to take a loss from a profit standpoint.  They're in it for the long haul. 



Pete Baldwin 12/5/2012 | 4:27:00 PM
re: Adtran vs. Cisco Earnings

Neither one is public, right? That takes some of the fun out of it.

Thanks for the mention, however gratuitous it might be. Maybe we'll go ask Adtran about them. Then we'll have to find even smaller companies for the next comparison.

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