|
|
|
|
|
|
|
(In Thousands) | ||||
|
||||
Cash
|
$ | 1,027 | ||
Accounts receivable
|
297 | |||
Inventory
|
792 | |||
Prepaid expenses
|
357 | |||
Property, plant and equipment
|
173 | |||
Deferred tax assets, net
|
11,411 | |||
Accounts payable
|
(441 | ) | ||
Unearned revenue
|
(600 | ) | ||
Accrued expenses
|
(332 | ) | ||
|
||||
Net assets acquired
|
12,684 | |||
|
||||
Customer relationships
|
1,700 | |||
Developed technology
|
3,590 | |||
Intellectual property
|
1,070 | |||
Trade names
|
300 | |||
Goodwill
|
4,445 | |||
|
||||
Total purchase price
|
$ | 23,789 | ||
|
|
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
|
||||||||||||||||
Stock-based compensation expense included in
cost of sales
|
$ | 100 | $ | 69 | $ | 280 | $ | 210 | ||||||||
|
||||||||||||||||
Selling, general and administrative expense
|
1,090 | 775 | 3,096 | 2,360 | ||||||||||||
Research and development expense
|
1,100 | 886 | 3,079 | 2,657 | ||||||||||||
|
||||||||||||||||
Stock-based compensation expense included in
operating expenses
|
2,190 | 1,661 | 6,175 | 5,017 | ||||||||||||
|
||||||||||||||||
Total stock-based compensation expense
|
2,290 | 1,730 | 6,455 | 5,227 | ||||||||||||
Tax benefit for expense associated with
non-qualified options
|
(302 | ) | (43 | ) | (1,018 | ) | (415 | ) | ||||||||
|
||||||||||||||||
Total stock-based compensation expense, net of tax
|
$ | 1,988 | $ | 1,687 | $ | 5,437 | $ | 4,812 | ||||||||
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Expected volatility
|
38.31 | % | 39.75 | % | 38.31 | % | 40.92 | % | ||||||||
Risk-free interest rate
|
1.00 | % | 1.98 | % | 1.00 | % | 2.47 | % | ||||||||
Expected dividend yield
|
1.19 | % | 1.27 | % | 1.19 | % | 1.51 | % | ||||||||
Expected life (in years)
|
5.14 | 5.38 | 5.14 | 5.19 | ||||||||||||
Weighted-average estimated value
|
$ | 9.52 | $ | 9.72 | $ | 9.54 | $ | 8.29 |
Weighted Avg. | ||||||||||||||||
Remaining | Aggregate | |||||||||||||||
Number of | Weighted Avg. | Contractual | Intrinsic | |||||||||||||
(In thousands, except per share amounts) | Options | Exercise Price | Life In Years | Value | ||||||||||||
Options outstanding, December 31, 2010
|
6,234 | $ | 23.09 | 6.21 | $ | 81,561 | ||||||||||
Options granted
|
992 | $ | 30.47 | |||||||||||||
Options cancelled/forfeited
|
(58 | ) | $ | 26.61 | ||||||||||||
Options exercised
|
(1,752 | ) | $ | 19.36 | ||||||||||||
|
||||||||||||||||
Options outstanding, September 30, 2011
|
5,416 | $ | 25.61 | 7.01 | $ | 24,647 | ||||||||||
|
||||||||||||||||
Options exercisable, September 30, 2011
|
2,221 | $ | 23.30 | 4.63 | $ | 13,700 | ||||||||||
|
Weighted | ||||||||
Average | ||||||||
Number of | Grant Date | |||||||
(In thousands, except per share amounts) | Shares | Fair Value | ||||||
RSUs and restricted stock outstanding, December 31, 2010
|
87 | $ | 28.46 | |||||
RSUs and restricted stock granted
|
— | $ | — | |||||
RSUs and restricted stock vested
|
— | $ | — | |||||
RSUs and restricted stock cancelled/forfeited
|
— | $ | — | |||||
|
||||||||
Unvested RSUs and restricted stock, September 30, 2011
|
87 | $ | 28.46 | |||||
|
|
Amortized | Gross Unrealized | Carrying | ||||||||||||||
(In thousands) | Cost | Gains | Losses | Value | ||||||||||||
Deferred compensation plan assets
|
$ | 6,636 | $ | 113 | $ | (635 | ) | $ | 6,114 | |||||||
Corporate bonds
|
178,560 | 316 | (2,219 | ) | 176,657 | |||||||||||
Municipal fixed-rate bonds
|
140,405 | 578 | (37 | ) | 140,946 | |||||||||||
Municipal variable rate demand notes
|
60,705 | — | — | 60,705 | ||||||||||||
Fixed income bond fund
|
526 | 165 | — | 691 | ||||||||||||
Marketable equity securities
|
12,662 | 22,391 | (1,076 | ) | 33,977 | |||||||||||
|
||||||||||||||||
Available-for-sale securities held at fair value
|
$ | 399,494 | $ | 23,563 | $ | (3,967 | ) | $ | 419,090 | |||||||
|
||||||||||||||||
Restricted investment held at cost
|
48,250 | |||||||||||||||
Other investments held at cost
|
2,152 | |||||||||||||||
|
||||||||||||||||
Total carrying value of available-for-sale investments
|
$ | 469,492 | ||||||||||||||
|
Amortized | Gross Unrealized | Carrying | ||||||||||||||
(In thousands) | Cost | Gains | Losses | Value | ||||||||||||
Deferred compensation plan assets
|
$ | 3,483 | $ | 770 | $ | (7 | ) | $ | 4,246 | |||||||
Corporate bonds
|
126,671 | 630 | (229 | ) | 127,072 | |||||||||||
Municipal fixed-rate bonds
|
71,212 | 268 | (13 | ) | 71,467 | |||||||||||
Municipal variable rate demand notes
|
116,745 | — | — | 116,745 | ||||||||||||
Fixed income bond fund
|
526 | 220 | — | 746 | ||||||||||||
Marketable equity securities
|
11,486 | 36,657 | (133 | ) | 48,010 | |||||||||||
|
||||||||||||||||
Available-for-sale securities held at fair value
|
$ | 330,123 | $ | 38,545 | $ | (382 | ) | $ | 368,286 | |||||||
|
||||||||||||||||
Restricted investment held at cost
|
48,250 | |||||||||||||||
Other investments held at cost
|
2,103 | |||||||||||||||
|
||||||||||||||||
Total carrying value of available-for-sale investments
|
$ | 418,639 | ||||||||||||||
|
Fair Value Measurements at September 30, 2011 Using | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Market for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
(In thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash equivalents
|
||||||||||||||||
Money market funds
|
$ | 7,898 | $ | 7,898 | $ | — | $ | — | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
Deferred compensation plan assets
|
6,114 | 6,114 | — | — | ||||||||||||
Available-for-sale debt securities
|
||||||||||||||||
Corporate bonds
|
176,657 | — | 176,657 | — | ||||||||||||
Municipal fixed-rate bonds
|
140,946 | — | 140,946 | — | ||||||||||||
Municipal variable rate demand notes
|
60,705 | — | 60,705 | — | ||||||||||||
Fixed income bond fund
|
691 | 691 | — | — | ||||||||||||
Available-for-sale marketable equity
securities
|
||||||||||||||||
Equity securities — technology industry
|
22,701 | 22,701 | — | — | ||||||||||||
Equity securities — other
|
11,276 | 11,276 | — | — | ||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
419,090 | 40,782 | 378,308 | — | ||||||||||||
|
||||||||||||||||
Total
|
$ | 426,988 | $ | 48,680 | $ | 378,308 | $ | — | ||||||||
|
Fair Value Measurements at December 31, 2010 Using | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Market for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
(In thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash equivalents
|
||||||||||||||||
Money market funds
|
$ | 14,532 | $ | 14,532 | $ | — | $ | — | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
Deferred compensation plan assets
|
4,246 | 4,246 | — | — | ||||||||||||
Available-for-sale debt securities
|
||||||||||||||||
Corporate bonds
|
127,072 | — | 127,072 | — | ||||||||||||
Municipal fixed-rate bonds
|
71,467 | — | 71,467 | — | ||||||||||||
Municipal variable rate demand notes
|
116,745 | — | 116,745 | — | ||||||||||||
Fixed income bond fund
|
746 | 746 | — | — | ||||||||||||
Available-for-sale marketable equity
securities
|
||||||||||||||||
Equity securities — technology industry
|
35,596 | 35,596 | — | — | ||||||||||||
Equity securities — other
|
12,414 | 12,414 | — | — | ||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
368,286 | 53,002 | 315,284 | — | ||||||||||||
|
||||||||||||||||
Total
|
$ | 382,818 | $ | 67,534 | $ | 315,284 | $ | — | ||||||||
|
|
September 30, | December 31, | |||||||
(In thousands) | 2011 | 2010 | ||||||
Raw materials
|
$ | 43,938 | $ | 43,897 | ||||
Work in process
|
4,806 | 2,871 | ||||||
Finished goods
|
38,569 | 27,506 | ||||||
|
||||||||
Total
|
$ | 87,313 | $ | 74,274 | ||||
|
|
(In thousands) | ||||
Balance, December 31, 2010
|
$ | — | ||
Acquisitions
|
4,445 | |||
Impairment losses
|
— | |||
|
||||
Balance, September 30, 2011
|
$ | 4,445 | ||
|
||||
|
||||
Balance as of September 30, 2011:
|
||||
Goodwill
|
$ | 4,445 | ||
Accumulated impairment losses
|
— | |||
|
||||
Total goodwill
|
$ | 4,445 | ||
|
September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||||||||||
(In thousands) | Value | Amortization | Net Value | Value | Amortization | Net Value | ||||||||||||||||||
Customer relationships
|
$ | 1,793 | $ | 133 | $ | 1,660 | $ | 93 | $ | 60 | $ | 33 | ||||||||||||
Developed technology
|
3,590 | 121 | 3,469 | — | — | — | ||||||||||||||||||
Intellectual property
|
2,480 | 437 | 2,043 | 1,410 | 260 | 1,150 | ||||||||||||||||||
Trade names
|
300 | 11 | 289 | — | — | — | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 8,163 | $ | 702 | $ | 7,461 | $ | 1,503 | $ | 320 | $ | 1,183 | ||||||||||||
|
(In thousands) | Amount | |||
Remainder of 2011
|
$ | 347 | ||
2012
|
1,389 | |||
2013
|
1,389 | |||
2014
|
1,228 | |||
2015
|
1,117 | |||
2016 and thereafter
|
1,991 | |||
|
||||
Total
|
$ | 7,461 | ||
|
|
Stockholders’ | ||||
(In thousands) | Equity | |||
Balance, December 31, 2010
|
$ | 572,322 | ||
Net income
|
107,414 | |||
Dividend payments
|
(17,395 | ) | ||
Dividends accrued for unvested restricted stock units
|
(22 | ) | ||
Net change in unrealized gains (losses) on marketable securities (net of deferred taxes)
|
(11,259 | ) | ||
Reclassification adjustment for amounts included in net income (net of deferred taxes)
|
(682 | ) | ||
Foreign currency translation adjustment
|
(1,031 | ) | ||
Proceeds from stock option exercises
|
33,631 | |||
Tax benefits from stock option exercises
|
10,457 | |||
Stock-based compensation expense
|
6,455 | |||
Purchases of treasury stock
|
(35,178 | ) | ||
|
||||
Balance, September 30, 2011
|
$ | 664,712 | ||
|
Record Date | Payment Date | Per Share Amount | Total Dividend Paid | |||||||||
February 3, 2011
|
February 17, 2011 | $ | 0.09 | $ | 5,775 | |||||||
April 28, 2011
|
May 12, 2011 | $ | 0.09 | $ | 5,821 | |||||||
July 28, 2011
|
August 11, 2011 | $ | 0.09 | $ | 5,799 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Net income
|
$ | 36,213 | $ | 32,084 | $ | 107,414 | $ | 78,029 | ||||||||
Net change in unrealized gains
(losses) related to marketable
securities, net of deferred tax
benefit (expense) of $3,533 and
$(2,538) for the three months ended
September 30, 2011 and 2010,
respectively, and $6,235 and $(1,907)
for the nine months ended September
30, 2011 and 2010, respectively
|
(5,468 | ) | 4,230 | (11,259 | ) | 3,174 | ||||||||||
Reclassification adjustment for
amounts included in net income, net of
deferred tax benefit of $195 and $47
for the three months ended September
30, 2011 and 2010, respectively, and
$381 and $174 for the nine months
ended September 30, 2011 and 2010,
respectively
|
(287 | ) | (80 | ) | (682 | ) | (292 | ) | ||||||||
Foreign currency translation adjustment
|
(1,487 | ) | 1,465 | (1,031 | ) | 863 | ||||||||||
|
||||||||||||||||
Total comprehensive income
|
$ | 28,971 | $ | 37,699 | $ | 94,442 | $ | 81,774 | ||||||||
|
|
Three Months Ended | ||||||||||||||||
September 30, 2011 | September 30, 2010 | |||||||||||||||
(In thousands) | Sales | Gross Profit | Sales | Gross Profit | ||||||||||||
Carrier Networks
|
$ | 152,492 | $ | 85,944 | $ | 128,581 | $ | 77,372 | ||||||||
Enterprise Networks
|
39,702 | 23,532 | 34,376 | 19,927 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 192,194 | $ | 109,476 | $ | 162,957 | $ | 97,299 | ||||||||
|
Nine Months Ended | ||||||||||||||||
September 30, 2011 | September 30, 2010 | |||||||||||||||
(In thousands) | Sales | Gross Profit | Sales | Gross Profit | ||||||||||||
Carrier Networks
|
$ | 435,344 | $ | 252,908 | $ | 345,684 | $ | 206,910 | ||||||||
Enterprise Networks
|
106,599 | 62,190 | 94,661 | 55,046 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 541,943 | $ | 315,098 | $ | 440,345 | $ | 261,956 | ||||||||
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Carrier Systems
|
$ | 119,979 | $ | 76,349 | $ | 319,018 | $ | 207,590 | ||||||||
Business Networking
|
44,919 | 33,830 | 116,981 | 92,452 | ||||||||||||
Loop Access
|
27,296 | 52,778 | 105,944 | 140,303 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 192,194 | $ | 162,957 | $ | 541,943 | $ | 440,345 | ||||||||
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Growth Products
|
||||||||||||||||
Broadband Access (included in Carrier Systems)
|
$ | 86,954 | $ | 45,099 | $ | 215,798 | $ | 126,432 | ||||||||
Optical Access (included in Carrier Systems)
|
22,298 | 18,619 | 65,222 | 46,006 | ||||||||||||
Internetworking (NetVanta & Multi-service Access
Gateways) (included in Business Networking)
|
42,506 | 29,475 | 108,418 | 79,560 | ||||||||||||
|
||||||||||||||||
Total
|
151,758 | 93,193 | 389,438 | 251,998 | ||||||||||||
|
||||||||||||||||
Traditional Products
|
||||||||||||||||
HDSL (does not include T1) (included in Loop Access)
|
25,297 | 49,383 | 100,291 | 131,487 | ||||||||||||
Other products (excluding HDSL)
|
15,139 | 20,381 | 52,214 | 56,860 | ||||||||||||
|
||||||||||||||||
Total
|
40,436 | 69,764 | 152,505 | 188,347 | ||||||||||||
|
||||||||||||||||
|
||||||||||||||||
Total
|
$ | 192,194 | $ | 162,957 | $ | 541,943 | $ | 440,345 | ||||||||
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
United States
|
$ | 170,343 | $ | 154,648 | $ | 484,260 | $ | 416,994 | ||||||||
International
|
21,851 | 8,309 | 57,683 | 23,351 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 192,194 | $ | 162,957 | $ | 541,943 | $ | 440,345 | ||||||||
|
|
Nine Months Ended September 30, | ||||||||
(In thousands) | 2011 | 2010 | ||||||
Balance at beginning of period
|
$ | 3,304 | $ | 2,833 | ||||
Plus: Amounts charged to cost and expenses
|
2,306 | 2,544 | ||||||
Less: Deductions
|
(1,743 | ) | (2,137 | ) | ||||
|
||||||||
Balance at end of period
|
$ | 3,867 | $ | 3,240 | ||||
|
|
|
|
|
|
(In Thousands) | ||||
|
||||
Cash
|
$ | 1,027 | ||
Accounts receivable
|
297 | |||
Inventory
|
792 | |||
Prepaid expenses
|
357 | |||
Property, plant and equipment
|
173 | |||
Deferred tax assets, net
|
11,411 | |||
Accounts payable
|
(441 | ) | ||
Unearned revenue
|
(600 | ) | ||
Accrued expenses
|
(332 | ) | ||
|
||||
Net assets acquired
|
12,684 | |||
|
||||
Customer relationships
|
1,700 | |||
Developed technology
|
3,590 | |||
Intellectual property
|
1,070 | |||
Trade names
|
300 | |||
Goodwill
|
4,445 | |||
|
||||
Total purchase price
|
$ | 23,789 | ||
|
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
|
||||||||||||||||
Stock-based compensation expense included in
cost of sales
|
$ | 100 | $ | 69 | $ | 280 | $ | 210 | ||||||||
|
||||||||||||||||
Selling, general and administrative expense
|
1,090 | 775 | 3,096 | 2,360 | ||||||||||||
Research and development expense
|
1,100 | 886 | 3,079 | 2,657 | ||||||||||||
|
||||||||||||||||
Stock-based compensation expense included in
operating expenses
|
2,190 | 1,661 | 6,175 | 5,017 | ||||||||||||
|
||||||||||||||||
Total stock-based compensation expense
|
2,290 | 1,730 | 6,455 | 5,227 | ||||||||||||
Tax benefit for expense associated with
non-qualified options
|
(302 | ) | (43 | ) | (1,018 | ) | (415 | ) | ||||||||
|
||||||||||||||||
Total stock-based compensation expense, net of tax
|
$ | 1,988 | $ | 1,687 | $ | 5,437 | $ | 4,812 | ||||||||
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Expected volatility
|
38.31 | % | 39.75 | % | 38.31 | % | 40.92 | % | ||||||||
Risk-free interest rate
|
1.00 | % | 1.98 | % | 1.00 | % | 2.47 | % | ||||||||
Expected dividend yield
|
1.19 | % | 1.27 | % | 1.19 | % | 1.51 | % | ||||||||
Expected life (in years)
|
5.14 | 5.38 | 5.14 | 5.19 | ||||||||||||
Weighted-average estimated value
|
$ | 9.52 | $ | 9.72 | $ | 9.54 | $ | 8.29 |
Weighted Avg. | ||||||||||||||||
Remaining | Aggregate | |||||||||||||||
Number of | Weighted Avg. | Contractual | Intrinsic | |||||||||||||
(In thousands, except per share amounts) | Options | Exercise Price | Life In Years | Value | ||||||||||||
Options outstanding, December 31, 2010
|
6,234 | $ | 23.09 | 6.21 | $ | 81,561 | ||||||||||
Options granted
|
992 | $ | 30.47 | |||||||||||||
Options cancelled/forfeited
|
(58 | ) | $ | 26.61 | ||||||||||||
Options exercised
|
(1,752 | ) | $ | 19.36 | ||||||||||||
|
||||||||||||||||
Options outstanding, September 30, 2011
|
5,416 | $ | 25.61 | 7.01 | $ | 24,647 | ||||||||||
|
||||||||||||||||
Options exercisable, September 30, 2011
|
2,221 | $ | 23.30 | 4.63 | $ | 13,700 | ||||||||||
|
Weighted | ||||||||
Average | ||||||||
Number of | Grant Date | |||||||
(In thousands, except per share amounts) | Shares | Fair Value | ||||||
RSUs and restricted stock outstanding, December 31, 2010
|
87 | $ | 28.46 | |||||
RSUs and restricted stock granted
|
— | $ | — | |||||
RSUs and restricted stock vested
|
— | $ | — | |||||
RSUs and restricted stock cancelled/forfeited
|
— | $ | — | |||||
|
||||||||
Unvested RSUs and restricted stock, September 30, 2011
|
87 | $ | 28.46 | |||||
|
|
Amortized | Gross Unrealized | Carrying | ||||||||||||||
(In thousands) | Cost | Gains | Losses | Value | ||||||||||||
Deferred compensation plan assets
|
$ | 6,636 | $ | 113 | $ | (635 | ) | $ | 6,114 | |||||||
Corporate bonds
|
178,560 | 316 | (2,219 | ) | 176,657 | |||||||||||
Municipal fixed-rate bonds
|
140,405 | 578 | (37 | ) | 140,946 | |||||||||||
Municipal variable rate demand notes
|
60,705 | — | — | 60,705 | ||||||||||||
Fixed income bond fund
|
526 | 165 | — | 691 | ||||||||||||
Marketable equity securities
|
12,662 | 22,391 | (1,076 | ) | 33,977 | |||||||||||
|
||||||||||||||||
Available-for-sale securities held at fair value
|
$ | 399,494 | $ | 23,563 | $ | (3,967 | ) | $ | 419,090 | |||||||
|
||||||||||||||||
Restricted investment held at cost
|
48,250 | |||||||||||||||
Other investments held at cost
|
2,152 | |||||||||||||||
|
||||||||||||||||
Total carrying value of available-for-sale investments
|
$ | 469,492 | ||||||||||||||
|
Amortized | Gross Unrealized | Carrying | ||||||||||||||
(In thousands) | Cost | Gains | Losses | Value | ||||||||||||
Deferred compensation plan assets
|
$ | 3,483 | $ | 770 | $ | (7 | ) | $ | 4,246 | |||||||
Corporate bonds
|
126,671 | 630 | (229 | ) | 127,072 | |||||||||||
Municipal fixed-rate bonds
|
71,212 | 268 | (13 | ) | 71,467 | |||||||||||
Municipal variable rate demand notes
|
116,745 | — | — | 116,745 | ||||||||||||
Fixed income bond fund
|
526 | 220 | — | 746 | ||||||||||||
Marketable equity securities
|
11,486 | 36,657 | (133 | ) | 48,010 | |||||||||||
|
||||||||||||||||
Available-for-sale securities held at fair value
|
$ | 330,123 | $ | 38,545 | $ | (382 | ) | $ | 368,286 | |||||||
|
||||||||||||||||
Restricted investment held at cost
|
48,250 | |||||||||||||||
Other investments held at cost
|
2,103 | |||||||||||||||
|
||||||||||||||||
Total carrying value of available-for-sale investments
|
$ | 418,639 | ||||||||||||||
|
Fair Value Measurements at September 30, 2011 Using | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Market for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
(In thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash equivalents
|
||||||||||||||||
Money market funds
|
$ | 7,898 | $ | 7,898 | $ | — | $ | — | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
Deferred compensation plan assets
|
6,114 | 6,114 | — | — | ||||||||||||
Available-for-sale debt securities
|
||||||||||||||||
Corporate bonds
|
176,657 | — | 176,657 | — | ||||||||||||
Municipal fixed-rate bonds
|
140,946 | — | 140,946 | — | ||||||||||||
Municipal variable rate demand notes
|
60,705 | — | 60,705 | — | ||||||||||||
Fixed income bond fund
|
691 | 691 | — | — | ||||||||||||
Available-for-sale marketable equity
securities
|
||||||||||||||||
Equity securities — technology industry
|
22,701 | 22,701 | — | — | ||||||||||||
Equity securities — other
|
11,276 | 11,276 | — | — | ||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
419,090 | 40,782 | 378,308 | — | ||||||||||||
|
||||||||||||||||
Total
|
$ | 426,988 | $ | 48,680 | $ | 378,308 | $ | — | ||||||||
|
Fair Value Measurements at December 31, 2010 Using | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Market for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
(In thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash equivalents
|
||||||||||||||||
Money market funds
|
$ | 14,532 | $ | 14,532 | $ | — | $ | — | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
Deferred compensation plan assets
|
4,246 | 4,246 | — | — | ||||||||||||
Available-for-sale debt securities
|
||||||||||||||||
Corporate bonds
|
127,072 | — | 127,072 | — | ||||||||||||
Municipal fixed-rate bonds
|
71,467 | — | 71,467 | — | ||||||||||||
Municipal variable rate demand notes
|
116,745 | — | 116,745 | — | ||||||||||||
Fixed income bond fund
|
746 | 746 | — | — | ||||||||||||
Available-for-sale marketable equity
securities
|
||||||||||||||||
Equity securities — technology industry
|
35,596 | 35,596 | — | — | ||||||||||||
Equity securities — other
|
12,414 | 12,414 | — | — | ||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
368,286 | 53,002 | 315,284 | — | ||||||||||||
|
||||||||||||||||
Total
|
$ | 382,818 | $ | 67,534 | $ | 315,284 | $ | — | ||||||||
|
|
September 30, | December 31, | |||||||
(In thousands) | 2011 | 2010 | ||||||
Raw materials
|
$ | 43,938 | $ | 43,897 | ||||
Work in process
|
4,806 | 2,871 | ||||||
Finished goods
|
38,569 | 27,506 | ||||||
|
||||||||
Total
|
$ | 87,313 | $ | 74,274 | ||||
|
|
(In thousands) | ||||
Balance, December 31, 2010
|
$ | — | ||
Acquisitions
|
4,445 | |||
Impairment losses
|
— | |||
|
||||
Balance, September 30, 2011
|
$ | 4,445 | ||
|
||||
|
||||
Balance as of September 30, 2011:
|
||||
Goodwill
|
$ | 4,445 | ||
Accumulated impairment losses
|
— | |||
|
||||
Total goodwill
|
$ | 4,445 | ||
|
September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||||||||||
(In thousands) | Value | Amortization | Net Value | Value | Amortization | Net Value | ||||||||||||||||||
Customer relationships
|
$ | 1,793 | $ | 133 | $ | 1,660 | $ | 93 | $ | 60 | $ | 33 | ||||||||||||
Developed technology
|
3,590 | 121 | 3,469 | — | — | — | ||||||||||||||||||
Intellectual property
|
2,480 | 437 | 2,043 | 1,410 | 260 | 1,150 | ||||||||||||||||||
Trade names
|
300 | 11 | 289 | — | — | — | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 8,163 | $ | 702 | $ | 7,461 | $ | 1,503 | $ | 320 | $ | 1,183 | ||||||||||||
|
(In thousands) | Amount | |||
Remainder of 2011
|
$ | 347 | ||
2012
|
1,389 | |||
2013
|
1,389 | |||
2014
|
1,228 | |||
2015
|
1,117 | |||
2016 and thereafter
|
1,991 | |||
|
||||
Total
|
$ | 7,461 | ||
|
|
Stockholders’ | ||||
(In thousands) | Equity | |||
Balance, December 31, 2010
|
$ | 572,322 | ||
Net income
|
107,414 | |||
Dividend payments
|
(17,395 | ) | ||
Dividends accrued for unvested restricted stock units
|
(22 | ) | ||
Net change in unrealized gains (losses) on marketable securities (net of deferred taxes)
|
(11,259 | ) | ||
Reclassification adjustment for amounts included in net income (net of deferred taxes)
|
(682 | ) | ||
Foreign currency translation adjustment
|
(1,031 | ) | ||
Proceeds from stock option exercises
|
33,631 | |||
Tax benefits from stock option exercises
|
10,457 | |||
Stock-based compensation expense
|
6,455 | |||
Purchases of treasury stock
|
(35,178 | ) | ||
|
||||
Balance, September 30, 2011
|
$ | 664,712 | ||
|
Record Date | Payment Date | Per Share Amount | Total Dividend Paid | |||||||||
February 3, 2011
|
February 17, 2011 | $ | 0.09 | $ | 5,775 | |||||||
April 28, 2011
|
May 12, 2011 | $ | 0.09 | $ | 5,821 | |||||||
July 28, 2011
|
August 11, 2011 | $ | 0.09 | $ | 5,799 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Net income
|
$ | 36,213 | $ | 32,084 | $ | 107,414 | $ | 78,029 | ||||||||
Net change in unrealized gains
(losses) related to marketable
securities, net of deferred tax
benefit (expense) of $3,533 and
$(2,538) for the three months ended
September 30, 2011 and 2010,
respectively, and $6,235 and $(1,907)
for the nine months ended September
30, 2011 and 2010, respectively
|
(5,468 | ) | 4,230 | (11,259 | ) | 3,174 | ||||||||||
Reclassification adjustment for
amounts included in net income, net of
deferred tax benefit of $195 and $47
for the three months ended September
30, 2011 and 2010, respectively, and
$381 and $174 for the nine months
ended September 30, 2011 and 2010,
respectively
|
(287 | ) | (80 | ) | (682 | ) | (292 | ) | ||||||||
Foreign currency translation adjustment
|
(1,487 | ) | 1,465 | (1,031 | ) | 863 | ||||||||||
|
||||||||||||||||
Total comprehensive income
|
$ | 28,971 | $ | 37,699 | $ | 94,442 | $ | 81,774 | ||||||||
|
|
Three Months Ended | ||||||||||||||||
September 30, 2011 | September 30, 2010 | |||||||||||||||
(In thousands) | Sales | Gross Profit | Sales | Gross Profit | ||||||||||||
Carrier Networks
|
$ | 152,492 | $ | 85,944 | $ | 128,581 | $ | 77,372 | ||||||||
Enterprise Networks
|
39,702 | 23,532 | 34,376 | 19,927 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 192,194 | $ | 109,476 | $ | 162,957 | $ | 97,299 | ||||||||
|
Nine Months Ended | ||||||||||||||||
September 30, 2011 | September 30, 2010 | |||||||||||||||
(In thousands) | Sales | Gross Profit | Sales | Gross Profit | ||||||||||||
Carrier Networks
|
$ | 435,344 | $ | 252,908 | $ | 345,684 | $ | 206,910 | ||||||||
Enterprise Networks
|
106,599 | 62,190 | 94,661 | 55,046 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 541,943 | $ | 315,098 | $ | 440,345 | $ | 261,956 | ||||||||
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Carrier Systems
|
$ | 119,979 | $ | 76,349 | $ | 319,018 | $ | 207,590 | ||||||||
Business Networking
|
44,919 | 33,830 | 116,981 | 92,452 | ||||||||||||
Loop Access
|
27,296 | 52,778 | 105,944 | 140,303 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 192,194 | $ | 162,957 | $ | 541,943 | $ | 440,345 | ||||||||
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Growth Products
|
||||||||||||||||
Broadband Access (included in Carrier Systems)
|
$ | 86,954 | $ | 45,099 | $ | 215,798 | $ | 126,432 | ||||||||
Optical Access (included in Carrier Systems)
|
22,298 | 18,619 | 65,222 | 46,006 | ||||||||||||
Internetworking (NetVanta & Multi-service Access
Gateways) (included in Business Networking)
|
42,506 | 29,475 | 108,418 | 79,560 | ||||||||||||
|
||||||||||||||||
Total
|
151,758 | 93,193 | 389,438 | 251,998 | ||||||||||||
|
||||||||||||||||
Traditional Products
|
||||||||||||||||
HDSL (does not include T1) (included in Loop Access)
|
25,297 | 49,383 | 100,291 | 131,487 | ||||||||||||
Other products (excluding HDSL)
|
15,139 | 20,381 | 52,214 | 56,860 | ||||||||||||
|
||||||||||||||||
Total
|
40,436 | 69,764 | 152,505 | 188,347 | ||||||||||||
|
||||||||||||||||
|
||||||||||||||||
Total
|
$ | 192,194 | $ | 162,957 | $ | 541,943 | $ | 440,345 | ||||||||
|
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
United States
|
$ | 170,343 | $ | 154,648 | $ | 484,260 | $ | 416,994 | ||||||||
International
|
21,851 | 8,309 | 57,683 | 23,351 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 192,194 | $ | 162,957 | $ | 541,943 | $ | 440,345 | ||||||||
|
|
Nine Months Ended September 30, | ||||||||
(In thousands) | 2011 | 2010 | ||||||
Balance at beginning of period
|
$ | 3,304 | $ | 2,833 | ||||
Plus: Amounts charged to cost and expenses
|
2,306 | 2,544 | ||||||
Less: Deductions
|
(1,743 | ) | (2,137 | ) | ||||
|
||||||||
Balance at end of period
|
$ | 3,867 | $ | 3,240 | ||||
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