Benzinga | Feb 4, 2021 10:14AM EST

ADTRAN's Beats On Q4 Earnings, Operating Cash Flow Remains Negative

* ADTRAN, Inc. (NASDAQ: ADTN) reported year-on-year revenue growth of 12.4% to $130.1 million in the fourth quarter of FY20, beating consensus by $2.33 million. Network Solutions revenue rose 18.6% to $114.1 million, and Services & Support revenue declined 18% to $16 million.

* Gross profit rose 13.4% to $53.5 million as the margin remained flat.

* Operating loss narrowed by 76.4% to $3.3 million. The net income stood at $5.2 million, against a net loss of $2.5 million in the year-ago period.

* The EPS stood at $0.11, versus a net loss per share of $0.05 in the year-ago period, exceeding analyst consensus by $0.04.

* Cash and cash equivalents stood at $60.2 million as of December 31, 2020.

* Operating cash flow loss for the full year stood at $16.5 million compared to a $2.5 million loss in the year-ago period.

* "We saw substantial growth in our Tier-2 and Tier-3 service provider segments in the U.S. and a solid increase in fiber deployments in Europe. We expect that our fiber access solutions will continue to be adopted by customers around the world," said ADTRAN CEO Tom Stanton.

* The dividend per share for the fourth quarter of FY20 remains unchanged at $0.09.

* Price Action: ADTN shares are trading lower by 3.56% at $16.50 on the last check Thursday.