Analyst Sees Adtran SBC Win

Financial analyst says SBC has picked Adtran as one of its suppliers in a remote DSLAM RFP

September 1, 2004

2 Min Read
Analyst Sees Adtran SBC Win

Adtran Inc. (Nasdaq: ADTN) has been selected as a supplier for SBC Communications Inc.'s (NYSE: SBC) Extended Reach DSL request for proposal (RFP), according to analyst Joe Noel at Pacific Growth Equities Inc.

"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:

  • Next-Gen DSLAMs

  • The Role of DSLAMs in Delivering Next-Gen Services

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