UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 17, 2017
 
ADTRAN, Inc.
(Exact name of Registrant as Specified in Its Charter)

Delaware	000-24612	63-0918200	
(State or Other Jurisdiction
of Incorporation)	(Commission File Number)	(IRS Employer
Identification No.)	
 	 	 	
901 Explorer Boulevard
Huntsville, Alabama	 	35806-2807	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s Telephone Number, Including Area Code: (256) 963-8000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 
Item 2.02 Results of Operations and Financial Condition.
 
On October 17, 2017, ADTRAN, Inc. announced its financial results for the fiscal quarter ended September 30, 2017 and certain other information.
 
ADTRAN also announced that its Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid to shareholders of record at the close of business on November 1, 2017. The ex-dividend date is October 31, 2017 and the payment date is November 15, 2017.
 
A copy of ADTRAN's press release announcing such financial results and other information is attached as Exhibit 99.1 hereto and incorporated by reference herein.
 
In addition, ADTRAN has posted supplemental information regarding revenues by segment and category for the fiscal quarter ended September 30, 2017 on the Investor Relations page of its website, www.adtran.com . A copy of the supplemental information is attached as Exhibit 99.2 hereto and incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.
 
(d)  Exhibits.
 
The following exhibits are furnished as part of this Current Report on Form 8-K.

Exhibit Number	Description	
99.1	Press Release dated October 17, 2017	
99.2	Revenues by segment and category classification	

 

 
SIGNATURES
 
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on October 18, 2017.
ADTRAN, Inc.
(Registrant) 

By : /s/ Roger D Shannon
Roger D. Shannon
Senior Vice President of Finance,
Chief Financial Officer, Corporate Secretary and Treasurer
(Principal Accounting Officer)

 

EXHIBIT 99.1
 
ADTRAN, Inc. Reports 28% Increase in Earnings for the Third Quarter 2017 and Declares Quarterly Cash Dividend
Earnings per share increases 27% versus Q3 2016, and the company reports record Services revenues
HUNTSVILLE, Ala. --(BUSINESS WIRE)—October 17, 2017-- ADTRAN, Inc. (NASDAQ:ADTN) reported results for the third quarter 2017. For the quarter, sales were $185.1 million compared to $168.9 million for the third quarter of 2016. Net income was $15.9 million compared to $12.4 million for the third quarter of 2016. Earnings per share, assuming dilution, were $0.33 compared to $0.26 for the third quarter of 2016. Non-GAAP earnings per share were $0.37 compared to $0.26 for the third quarter of 2016, an increase of 42%. The reconciliation between GAAP earnings per share, diluted, and non-GAAP earnings per share, diluted, is in the table provided.
ADTRAN Chairman and Chief Executive Officer Tom Stanton stated, “We are very pleased with the company’s performance in the third quarter as we continued to see strong sales in our domestic ultra-broadband solutions and services, which have more than doubled from the same period last year. Total company revenues grew by 10% compared to the same period last year as a result of strength in both our Network Solutions segment and a record performance in our services revenues, which again grew at a double-digit pace. We were also pleased to see growth in our Customer Devices category in the quarter. Our customers are increasingly relying on ADTRAN to help them plan, provision and deploy network assets to the best effect, ensuring the network is prepared for the emergence of exciting applications and mission critical services.”
The Company also announced that its Board of Directors declared a cash dividend for the third quarter of 2017. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on November 1, 2017. The ex-dividend date is October 31, 2017, and the payment date is November 15, 2017.
The Company confirmed that its third quarter conference call will be held Wednesday, October 18, 2017, at 9:30 a.m. Central Time. ADTRAN will webcast this conference. To listen, simply visit the Investor Relations site at www.investors.adtran.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, as well as the text of the Company's earnings release, will be available on the Investor Relations site approximately 24 hours following the call and will remain available for at least 12 months.
ADTRAN, Inc. is a leading global provider of networking and communications equipment. ADTRAN’s products enable voice, data, video and Internet communications across a variety of network infrastructures. ADTRAN solutions are currently in use by service providers, private enterprises, government organizations, and millions of individual users worldwide. For more information, please visit www.adtran.com.
For more information, contact the company at 800 9ADTRAN (800 923-8726) or via email at  investor.relations @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, 2016. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release. 

Condensed Consolidated Balance Sheet
(Unaudited)
(In thousands)

	September 30,	 	 	December 31,	 	
 	2017	 	 	2016	 	
Assets	 	 	 	 	 	 	 	
Cash and cash equivalents	$	128,253	 	 	$	79,895	 	
Short-term investments	 	31,385	 	 	 	43,188	 	
Accounts receivable, net	 	101,613	 	 	 	92,346	 	
Other receivables	 	18,541	 	 	 	15,137	 	
Income tax receivable, net	 	—	 	 	 	760	 	
Inventory, net	 	116,230	 	 	 	105,117	 	
Prepaid expenses and other current assets	 	23,127	 	 	 	16,459	 	
Total Current Assets	 	419,149	 	 	 	352,902	 	
 	 	 	 	 	 	 	 	
Property, plant and equipment, net	 	85,665	 	 	 	84,469	 	
Deferred tax assets, net	 	37,130	 	 	 	38,036	 	
Goodwill	 	3,492	 	 	 	3,492	 	
Other assets	 	13,135	 	 	 	12,234	 	
Long-term investments	 	136,987	 	 	 	176,102	 	
Total Assets	$	695,558	 	 	$	667,235	 	
 	 	 	 	 	 	 	 	
Liabilities and Stockholders' Equity	 	 	 	 	 	 	 	
Accounts payable	$	73,127	 	 	$	77,342	 	
Unearned revenue	 	13,651	 	 	 	16,326	 	
Accrued expenses	 	15,099	 	 	 	12,434	 	
Accrued wages and benefits	 	15,345	 	 	 	20,433	 	
Income tax payable, net	 	7,696	 	 	 	—	 	
Total Current Liabilities	 	124,918	 	 	 	126,535	 	
 	 	 	 	 	 	 	 	
Non-current unearned revenue	 	4,918	 	 	 	6,333	 	
Other non-current liabilities	 	34,756	 	 	 	28,050	 	
Bonds payable	 	26,800	 	 	 	26,800	 	
Total Liabilities	 	191,392	 	 	 	187,718	 	
 	 	 	 	 	 	 	 	
Stockholders' Equity	 	504,166	 	 	 	479,517	 	
 	 	 	 	 	 	 	 	
Total Liabilities and Stockholders' Equity	$	695,558	 	 	$	667,235	 	

Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)

	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2017	 	 	2016	 	 	2017	 	 	2016	 	
Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Products	 	$	145,467	 	 	$	136,277	 	 	$	444,607	 	 	$	398,709	 	
Services	 	 	39,645	 	 	 	32,613	 	 	 	95,457	 	 	 	75,086	 	
Total Sales	 	 	185,112	 	 	 	168,890	 	 	 	540,064	 	 	 	473,795	 	
Cost of sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Products	 	 	73,528	 	 	 	70,988	 	 	 	229,845	 	 	 	202,905	 	
Services	 	 	25,086	 	 	 	22,094	 	 	 	65,374	 	 	 	50,333	 	
Total Cost of Sales	 	 	98,614	 	 	 	93,082	 	 	 	295,219	 	 	 	253,238	 	
Gross Profit	 	 	86,498	 	 	 	75,808	 	 	 	244,845	 	 	 	220,557	 	
Selling, general and administrative expenses	 	 	34,652	 	 	 	33,716	 	 	 	104,102	 	 	 	97,367	 	
Research and development expenses	 	 	33,528	 	 	 	31,962	 	 	 	98,945	 	 	 	92,727	 	
Operating Income	 	 	18,318	 	 	 	10,130	 	 	 	41,798	 	 	 	30,463	 	
Interest and dividend income	 	 	952	 	 	 	910	 	 	 	2,857	 	 	 	2,692	 	
Interest expense	 	 	(139	)	 	 	(143	)	 	 	(417	)	 	 	(430	)	
Net realized investment gain	 	 	1,009	 	 	 	1,316	 	 	 	2,869	 	 	 	4,154	 	
Other expense, net	 	 	(933	)	 	 	(246	)	 	 	(1,686	)	 	 	(378	)	
Gain on bargain purchase of a business	 	 	—	 	 	 	3,550	 	 	 	—	 	 	 	3,550	 	
Income before provision for income taxes	 	 	19,207	 	 	 	15,517	 	 	 	45,421	 	 	 	40,051	 	
Provision for income taxes	 	 	(3,309	)	 	 	(3,102	)	 	 	(10,471	)	 	 	(12,394	)	
Net Income	 	$	15,898	 	 	$	12,415	 	 	$	34,950	 	 	$	27,657	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding – basic	 	 	47,870	 	 	 	48,470	 	 	 	48,110	 	 	 	48,839	 	
Weighted average shares outstanding – diluted	 	 	48,531	 	 	 	48,678	 	 	 	48,618	 	 	 	49,036	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings per common share – basic	 	$	0.33	 	 	$	0.26	 	 	$	0.73	 	 	$	0.57	 	
Earnings per common share – diluted	 	$	0.33	 	 	$	0.26	 	 	$	0.72	 	 	$	0.56	 	
 
(1) Assumes exercise of dilutive stock options calculated under the treasury stock method.

Consolidated Statements of Comprehensive Income
(Unaudited)
(In thousands)

	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2017	 	 	2016	 	 	2017	 	 	2016	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	$	15,898	 	 	$	12,415	 	 	$	34,950	 	 	$	27,657	 	
Other Comprehensive Income, net of tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net unrealized gains (losses) on available-for-sale securities	 	 	804	 	 	 	258	 	 	 	2,512	 	 	 	(162	)	
Net unrealized gains (losses) on cash flow hedges	 	 	142	 	 	 	—	 	 	 	(196	)	 	 	—	 	
Defined benefit plan adjustments	 	 	73	 	 	 	36	 	 	 	214	 	 	 	103	 	
Foreign currency translation	 	 	1,541	 	 	 	575	 	 	 	5,402	 	 	 	1,202	 	
Other Comprehensive Income, net of tax	 	 	2,560	 	 	 	869	 	 	 	7,932	 	 	 	1,143	 	
Comprehensive Income, net of tax	 	$	18,458	 	 	$	13,284	 	 	$	42,882	 	 	$	28,800	 	

Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

	 	Nine Months Ended	 	
 	 	September 30,	 	
 	 	2017	 	 	2016	 	
Cash flows from operating activities:	 	 	 	 	 	 	 	 	
Net income	 	$	34,950	 	 	$	27,657	 	
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	 	12,034	 	 	 	10,260	 	
Amortization of net premium on available-for-sale investments	 	 	352	 	 	 	489	 	
Net realized gain on long-term investments	 	 	(2,869	)	 	 	(4,154	)	
Net (gain) loss on disposal of property, plant and equipment	 	 	(10	)	 	 	21	 	
Gain on bargain purchase of a business	 	 	—	 	 	 	(3,550	)	
Stock-based compensation expense	 	 	5,573	 	 	 	4,601	 	
Deferred income taxes	 	 	—	 	 	 	(463	)	
Changes in operating assets and liabilities:	 	 	 	 	 	 	 	 	
Accounts receivable, net	 	 	(6,975	)	 	 	(29,370	)	
Other receivables	 	 	(2,924	)	 	 	7,475	 	
Inventory	 	 	(9,483	)	 	 	(683	)	
Prepaid expenses and other assets	 	 	(9,647	)	 	 	(5,180	)	
Accounts payable	 	 	(4,727	)	 	 	16,363	 	
Accrued expenses and other liabilities	 	 	(2,820	)	 	 	7,307	 	
Income tax payable/receivable, net	 	 	8,571	 	 	 	(2,941	)	
Net cash provided by operating activities	 	 	22,025	 	 	 	27,832	 	
 	 	 	 	 	 	 	 	 	
Cash flows from investing activities:	 	 	 	 	 	 	 	 	
Purchases of property, plant and equipment	 	 	(12,304	)	 	 	(12,684	)	
Proceeds from disposals of property, plant and equipment	 	 	16	 	 	 	—	 	
Proceeds from sales and maturities of available-for-sale investments	 	 	137,272	 	 	 	141,103	 	
Purchases of available-for-sale investments	 	 	(79,713	)	 	 	(139,181	)	
Acquisition of business	 	 	—	 	 	 	(943	)	
Net cash provided by (used in) investing activities	 	 	45,271	 	 	 	(11,705	)	
 	 	 	 	 	 	 	 	 	
Cash flows from financing activities:	 	 	 	 	 	 	 	 	
Proceeds from stock option exercises	 	 	6,606	 	 	 	1,076	 	
Purchases of treasury stock	 	 	(17,348	)	 	 	(22,917	)	
Dividend payments	 	 	(13,031	)	 	 	(13,230	)	
Net cash used in financing activities	 	 	(23,773	)	 	 	(35,071	)	
 	 	 	 	 	 	 	 	 	
Net increase (decrease) in cash and cash equivalents	 	 	43,523	 	 	 	(18,944	)	
Effect of exchange rate changes	 	 	4,835	 	 	 	686	 	
Cash and cash equivalents, beginning of period	 	 	79,895	 	 	 	84,550	 	
 	 	 	 	 	 	 	 	 	
Cash and cash equivalents, end of period	 	$	128,253	 	 	$	66,292	 	
 	 	 	 	 	 	 	 	 	
Supplemental disclosure of non-cash investing activities:	 	 	 	 	 	 	 	 	
Purchases of property, plant and equipment included in accounts payable	 	$	272	 	 	$	1,174	 	

Supplemental Information
Restructuring Expenses
(Unaudited)
(In thousands)

Restructuring expense was recorded in the following Consolidated Statements of Income categories for the three and nine months ended September 30, 2017 and 2016:
 
	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2017	 	 	2016	 	 	2017	 	 	2016	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring expense included in cost of sales	 	$	—	 	 	$	1,307	 	 	$	—	 	 	$	1,307	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Selling, general and administrative expense	 	 	93	 	 	 	637	 	 	 	93	 	 	 	637	 	
Research and development expense	 	 	122	 	 	 	—	 	 	 	122	 	 	 	—	 	
Restructuring expense included in operating expenses	 	 	215	 	 	 	637	 	 	 	215	 	 	 	637	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total restructuring expense	 	 	215	 	 	 	1,944	 	 	 	215	 	 	 	1,944	 	
Provision for income taxes	 	 	(84	)	 	 	(603	)	 	 	(84	)	 	 	(603	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total restructuring expense, net of tax	 	$	131	 	 	$	1,341	 	 	$	131	 	 	$	1,341	 	

Supplemental Information
Acquisition Related Expenses, Amortizations and Adjustments
(Unaudited)
(In thousands)

On August 4, 2011, we closed on the acquisition of Bluesocket, Inc., on May 4, 2012, we closed on the acquisition of the Nokia Siemens Networks Broadband Access business (NSN BBA), and on September 13, 2016, we closed on the acquisition of CommScope’s active fiber business (CommScope). Acquisition related expenses, amortizations and adjustments for the three and nine months ended September 30, 2017 and 2016 for all three transactions are as follows:
 
	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2017	 	 	2016	 	 	2017	 	 	2016	 	
Bluesocket, Inc. acquisition	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Amortization of acquired intangible assets	 	$	158	 	 	$	158	 	 	$	474	 	 	$	504	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NSN BBA acquisition	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Amortization of acquired intangible assets	 	 	95	 	 	 	225	 	 	 	432	 	 	 	680	 	
Amortization of other purchase accounting adjustments	 	 	1	 	 	 	114	 	 	 	39	 	 	 	194	 	
Subtotal - NSN BBA acquisition	 	 	96	 	 	 	339	 	 	 	471	 	 	 	874	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CommScope acquisition	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Amortization of acquired intangible assets	 	 	219	 	 	 	112	 	 	 	1,513	 	 	 	112	 	
Amortization of other purchase accounting adjustments	 	 	4	 	 	 	84	 	 	 	85	 	 	 	84	 	
Acquisition related professional fees, travel and other expenses	 	 	—	 	 	 	45	 	 	 	8	 	 	 	45	 	
Subtotal - CommScope acquisition	 	 	223	 	 	 	241	 	 	 	1,606	 	 	 	241	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total acquisition related expenses, amortizations and
   adjustments	 	 	477	 	 	 	738	 	 	 	2,551	 	 	 	1,619	 	
Provision for income taxes	 	 	(178	)	 	 	(261	)	 	 	(957	)	 	 	(562	)	
Total acquisition related expenses, amortizations and
   adjustments, net of tax	 	$	299	 	 	$	477	 	 	$	1,594	 	 	$	1,057	 	
 
The acquisition related expenses, amortizations and adjustments above were recorded in the following Consolidated Statements of Income categories for the three and nine months ended September 30, 2017 and 2016:
 
	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2017	 	 	2016	 	 	2017	 	 	2016	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of goods sold	 	$	5	 	 	$	169	 	 	$	86	 	 	$	189	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Selling, general and administrative expenses	 	 	50	 	 	 	54	 	 	 	164	 	 	 	61	 	
Research and development expenses	 	 	422	 	 	 	515	 	 	 	2,301	 	 	 	1,369	 	
Total acquisition related expenses, amortizations and adjustments
   included in operating expenses	 	 	472	 	 	 	569	 	 	 	2,465	 	 	 	1,430	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total acquisition related expenses, amortizations and adjustments	 	 	477	 	 	 	738	 	 	 	2,551	 	 	 	1,619	 	
Provision for income taxes	 	 	(178	)	 	 	(261	)	 	 	(957	)	 	 	(562	)	
Total acquisition related expenses, amortizations and adjustments,
   net of tax	 	$	299	 	 	$	477	 	 	$	1,594	 	 	$	1,057	 	

Supplemental Information
Stock-based Compensation Expense
(Unaudited)
(In thousands)

	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2017	 	 	2016	 	 	2017	 	 	2016	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Stock-based compensation expense included in cost of sales	 	$	97	 	 	$	88	 	 	$	281	 	 	$	282	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Selling, general and administrative expense	 	 	994	 	 	 	765	 	 	 	3,018	 	 	 	2,322	 	
Research and development expense	 	 	743	 	 	 	639	 	 	 	2,274	 	 	 	1,997	 	
Stock-based compensation expense included in operating expenses	 	 	1,737	 	 	 	1,404	 	 	 	5,292	 	 	 	4,319	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stock-based compensation expense	 	 	1,834	 	 	 	1,492	 	 	 	5,573	 	 	 	4,601	 	
Tax benefit for expense associated with non-qualified options, PSUs,
   RSUs and restricted stock	 	 	(402	)	 	 	(218	)	 	 	(1,215	)	 	 	(643	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stock-based compensation expense, net of tax	 	$	1,432	 	 	$	1,274	 	 	$	4,358	 	 	$	3,958	 	

Reconciliation of GAAP net income per share, diluted, to
Non-GAAP net income per share, diluted
(Unaudited)

	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2017	 	 	2016	 	 	2017	 	 	2016	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP earnings per common share - diluted	 	$	0.33	 	 	$	0.26	 	 	$	0.72	 	 	$	0.56	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring expense	 	 	—	 	 	 	0.03	 	 	 	—	 	 	 	0.03	 	
Acquisition related expenses, amortizations and adjustments	 	 	0.01	 	 	 	0.01	 	 	 	0.03	 	 	 	0.02	 	
Stock-based compensation expense	 	 	0.03	 	 	 	0.03	 	 	 	0.09	 	 	 	0.08	 	
Gain on bargain purchase of a business	 	 	—	 	 	 	(0.07	)	 	 	—	 	 	 	(0.07	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP earnings per common share - diluted	 	$	0.37	 	 	$	0.26	 	 	$	0.84	 	 	$	0.62	 	

EXHIBIT 99.2
 
Segment and Category Revenues
(Unaudited)
(In thousands)
 
	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2017	 	 	2016	 	 	2017	 	 	2016	 	
Segment Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Network Solutions	 	$	145,467	 	 	$	136,277	 	 	$	444,607	 	 	$	398,709	 	
Services & Support	 	 	39,645	 	 	 	32,613	 	 	 	95,457	 	 	 	75,086	 	
Total	 	$	185,112	 	 	$	168,890	 	 	$	540,064	 	 	$	473,795	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Category Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Access & Aggregation	 	$	135,959	 	 	$	120,618	 	 	$	394,741	 	 	$	316,705	 	
Customer Devices	 	 	35,582	 	 	 	32,984	 	 	 	105,683	 	 	 	106,213	 	
Traditional & Other Products	 	 	13,571	 	 	 	15,288	 	 	 	39,640	 	 	 	50,877	 	
Total	 	$	185,112	 	 	$	168,890	 	 	$	540,064	 	 	$	473,795	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales by Geographic Region:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
United States	 	$	147,875	 	 	$	127,667	 	 	$	413,852	 	 	$	377,635	 	
International	 	 	37,237	 	 	 	41,223	 	 	 	126,212	 	 	 	96,160	 	
Total	 	$	185,112	 	 	$	168,890	 	 	$	540,064	 	 	$	473,795