ADTRAN, Inc. Reports First Quarter 2008 Results, Announces Additional Five Million Share Repurchase Plan and Declares Quarterly Cash Dividend

Business Wire,  April 15, 2008  

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HUNTSVILLE, Ala. -- ADTRAN, Inc. (NASDAQ:ADTN) reported results for the first quarter of 2008. Sales increased 9% to a first quarter record of $119,885,000 compared to $110,312,000 for the first quarter of 2007. Operating income increased 20% for the quarter to $25,140,000 compared to $20,956,000 for the first quarter of 2007. Net income was $17,047,000 for the quarter compared to $16,928,000 for the first quarter of 2007. Earnings per share, assuming dilution, were $0.26 for the quarter compared to $0.24 for the first quarter of 2007.

ADTRAN Chief Executive Officer Tom Stanton stated, "Momentum in our growth businesses overcame typical seasonality and a tepid enterprise spending environment. For the quarter, our growth businesses, which include Broadband Access, Internetworking and Optical Access, achieved record revenues, growing 44% year-over-year. Broadband Access achieved a record level with 57% year-over-year revenue growth. Internetworking also achieved record revenues for the quarter growing 34% year-over-year and Optical Access saw 30% year-over-year revenue growth for the quarter. We believe recent trends in these businesses provide early indications of the success we anticipate in these new markets."

The Company also reported that the provision for income taxes in the first quarter of 2008 was unusually high due to delays in federal legislation required to extend research tax credits for the 2008 year. For comparison purposes, the first quarter results for 2007 included benefits from life insurance proceeds and closure of prior year tax audits that increased earnings per share, assuming dilution, by approximately $0.02.

The Company announced that its Board of Directors has authorized the repurchase of an additional 5,000,000 shares of the Company's common stock to commence upon completion of the repurchase plan announced July 16, 2007. During the first quarter of 2008, the Company repurchased 771,000 shares of its common stock under the July 2007 plan. There are 761,000 shares remaining to be repurchased under the July 2007 plan. Upon completion of the current plan, the new plan will be implemented through open market or private purchases from time to time as conditions warrant. Since the beginning of 2004, the Company has repurchased a total of 18,562,000 shares of its common stock.

The Company also announced that its Board of Directors declared a cash dividend for the first quarter of 2008. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on May 1, 2008. The ex-dividend date is April 29, 2008 and the payment date is May 15, 2008.

The Company also confirmed that its first quarter conference call will be held Tuesday, April 15, 2008 at 9:30 a.m. Central Time. This conference call will be web cast live through StreetEvents.com. To listen, simply visit the Investor Relations site at http://www.adtran.com or http://streetevents.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 will be available for seven days at http://streetevents.com. In addition, 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 at http://www.adtran.com for at least 12 months following the call.

ADTRAN, Inc. is a leading global provider of networking and communications equipment, with a portfolio of more than 1,700 solutions for use in the last mile of today's telecommunications networks. Widely deployed by carriers and enterprises alike, ADTRAN solutions enable voice, data, video, and Internet communications across copper, fiber, and wireless network infrastructures. ADTRAN solutions are currently in use by every major U.S. service provider and many global ones, as well as by thousands of public, private and governmental organizations worldwide.

For more information, contact the company at 800 9ADTRAN (800 923-8726) or via email at info@adtran.com. On the Web, visit www.adtran.com.

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 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 for the year ended December 31, 2007. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.

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