April 14, 2010 / 4:01 PM / 9 years ago

UPDATE 2-Adtran sees sequential rise in Q2 rev; shares jump

* Sees Q2 rev up in the high single-digit percentage

* Q1 beats market

* Shares rise 10 pct to four-yr high (Adds analyst comments, updates share movement)

By Sudipto Ganguly

BANGALORE, April 14 (Reuters) - Adtran Inc (ADTN.O) forecast a sequential rise in second-quarter revenue, a day after posting better-than-expected quarterly results helped by improved sales at its broadband access segment.

The strong results, coupled with the bullish forecast, sent the shares of the company up as much as 10 percent to a four-year high Wednesday on Nasdaq.

The company expects the momentum in the first quarter to continue into the second quarter, Chief Executive Tom Stanton said in a conference call with analysts.

For the second quarter, the networking and communications equipment provider expects revenue to be up in the high single-digit percentage on a sequential basis.

“The outlook for the company does appear to be very positive,” Lawrence Harris, an analyst with CL King & Associates, told Reuters by phone.

The company was seeing accelerating demand for products in the broadband access category and internetworking segment and the outlook could prove to be conservative, Harris, who has an “accumulate” rating on the stock, said.

For the quarter ended March 31, net income increased 20 percent to $18.2 million, or 29 cents a share, compared with $15.2 million, or 24 cents a share, in the year-ago quarter.

Revenue rose 15 percent to $127 million.

Analysts had expected first-quarter earnings of 26 cents a share, excluding items, on revenue of $121 million, according to Thomson Reuters I/B/E/S.

The latest first quarter was helped by a 64 percent surge in revenue from its broadband access category and a 45 percent rise in internetworking revenues, Adtran said in a statement late on Tuesday.

Shares of the company, whose major customers include AT&T Inc (T.N) and Verizon Communications Inc (VZ.N), were up $1.91 at $29.23 in afternoon trade. They touched a high of $29.92 earlier in the day.

Around 3 million shares changed hands by 1730 GMT, almost three times their 10-day moving average volume. (Reporting by Sudipto Ganguly; Editing by Unnikrishnan Nair)

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