Citing a slowdown in spending by a U.S. carrier customer, ADTRAN trimmed its revenue and earnings estimates for the fourth quarter ending December 31, 2017. The company now expects revenue for the quarter is expected to be approximately $125 million. Non-GAAP earnings per share for the quarter are expected to be approximately $0.01. GAAP earnings per share for the quarter, assuming dilution, are expected to be a loss of approximately $0.04. ADTRAN expects Q1 2018 revenue to be in the same range.
ADTRAN Chief Executive Officer Tom Stanton stated, “Our performance this quarter has been significantly impacted by a merger-related review and slowdown in the spending at a domestic Tier 1 customer. Our current understanding is that this review will be completed in 60 to 90 days, at which time capital plans will be finalized. Going forward, recent awards and trials in Tier 1 customer accounts, both domestically and abroad, leave us very confident about our positioning.”
