|
|
|
|
|
|
|
|
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands) | 2011 | 2010 | ||||||
|
||||||||
Stock-based compensation expense included in
cost of sales
|
$ | 91 | $ | 68 | ||||
|
||||||||
|
||||||||
Selling, general and administrative expense
|
1,007 | 750 | ||||||
Research and development expense
|
991 | 871 | ||||||
|
||||||||
Stock-based compensation expense included in
operating expenses
|
1,998 | 1,621 | ||||||
|
||||||||
|
||||||||
Total stock-based compensation expense
|
2,089 | 1,689 | ||||||
Tax benefit for expense associated with
non-qualified options
|
(440 | ) | (177 | ) | ||||
|
||||||||
Total stock-based compensation expense, net of tax
|
$ | 1,649 | $ | 1,512 | ||||
|
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Expected volatility
|
— | 41.29 | % | |||||
Risk-free interest rate
|
— | 2.52 | % | |||||
Expected dividend yield
|
— | 1.59 | % | |||||
Expected life (in years)
|
— | 5.22 | ||||||
Weighted-average estimated value
|
$ | — | $ | 7.86 |
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
|
— | $ | — | |||||||||||||
Options cancelled/forfeited
|
(23 | ) | $ | 25.07 | ||||||||||||
Options exercised
|
(1,653 | ) | $ | 19.42 | ||||||||||||
|
||||||||||||||||
Options outstanding, March 31, 2011
|
4,558 | $ | 24.41 | 6.80 | $ | 82,295 | ||||||||||
|
||||||||||||||||
Options exercisable, March 31, 2011
|
2,318 | $ | 23.08 | 5.05 | $ | 44,921 | ||||||||||
|
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, March 31, 2011
|
87 | $ | 28.46 | |||||
|
|
Amortized | Gross Unrealized | Carrying | ||||||||||||||
(In thousands) | Cost | Gains | Losses | Value | ||||||||||||
|
||||||||||||||||
Deferred compensation plan assets
|
$ | 5,738 | $ | 839 | $ | — | $ | 6,577 | ||||||||
Corporate bonds
|
183,761 | 668 | (294 | ) | 184,135 | |||||||||||
Municipal fixed-rate bonds
|
133,700 | 371 | (53 | ) | 134,018 | |||||||||||
Municipal variable rate demand notes
|
58,710 | — | — | 58,710 | ||||||||||||
Fixed income bond fund
|
527 | 232 | — | 759 | ||||||||||||
Marketable equity securities
|
11,940 | 32,993 | (132 | ) | 44,801 | |||||||||||
|
||||||||||||||||
Available-for-sale securities held at fair value
|
$ | 394,376 | $ | 35,103 | $ | (479 | ) | $ | 429,000 | |||||||
|
||||||||||||||||
Restricted investment held at cost
|
48,250 | |||||||||||||||
Other investments held at cost
|
2,103 | |||||||||||||||
|
||||||||||||||||
Total carrying value of available-for-sale investments
|
$ | 479,353 | ||||||||||||||
|
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 March 31, 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
|
$ | 14,276 | $ | 14,276 | $ | — | $ | — | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
Deferred compensation plan assets
|
6,577 | 6,577 | — | — | ||||||||||||
Available-for-sale debt securities
|
||||||||||||||||
Corporate bonds
|
184,135 | — | 184,135 | — | ||||||||||||
Municipal fixed-rate bonds
|
134,018 | — | 134,018 | — | ||||||||||||
Municipal variable rate demand notes
|
58,710 | — | 58,710 | — | ||||||||||||
Fixed income bond fund
|
759 | 759 | — | — | ||||||||||||
Available-for-sale marketable equity
securities
|
||||||||||||||||
Equity securities — technology industry
|
31,201 | 31,201 | — | — | ||||||||||||
Equity securities — other
|
13,600 | 13,600 | — | — | ||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
429,000 | 52,137 | 376,863 | — | ||||||||||||
|
||||||||||||||||
Total
|
$ | 443,276 | $ | 66,413 | $ | 376,863 | $ | — | ||||||||
|
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 | $ | — | ||||||||
|
|
March 31, | December 31, | |||||||
(In thousands) | 2011 | 2010 | ||||||
Raw materials
|
$ | 42,446 | $ | 43,897 | ||||
Work in process
|
3,807 | 2,871 | ||||||
Finished goods
|
32,781 | 27,506 | ||||||
|
||||||||
Total
|
$ | 79,034 | $ | 74,274 | ||||
|
|
Stockholders’ | ||||
(In thousands) | Equity | |||
Balance, December 31, 2010
|
$ | 572,322 | ||
Net income
|
34,258 | |||
Dividend payments
|
(5,775 | ) | ||
Dividends accrued for unvested restricted stock units
|
(10 | ) | ||
Net change in unrealized gains and losses on marketable securities (net of deferred
taxes)
|
(2,651 | ) | ||
Reclassification adjustment for amounts included in net income (net of deferred taxes)
|
(159 | ) | ||
Foreign currency translation adjustment
|
87 | |||
Proceeds from stock option exercises
|
31,815 | |||
Tax benefits from stock option exercises
|
9,942 | |||
Stock-based compensation expense
|
2,089 | |||
|
||||
Balance, March 31, 2011
|
$ | 641,918 | ||
|
Record Date | Payment Date | Per Share Amount | Total Dividend Paid | |||||||||
|
||||||||||||
February 3, 2011
|
February 17, 2011 | $ | 0.09 | $ | 5,775 |
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands) | 2011 | 2010 | ||||||
|
||||||||
Net income
|
$ | 34,258 | $ | 18,194 | ||||
Net change in unrealized gains and
losses related to marketable
securities, net of deferred tax
benefit (expense) of $673 and $(2,772)
for the three months ended March 31,
2011 and 2010, respectively
|
(2,651 | ) | 4,622 | |||||
Reclassification adjustment for
amounts included in net income, net of
deferred tax benefit of $43 and $31
for the three months ended March 31,
2011 and 2010, respectively
|
(159 | ) | (52 | ) | ||||
Foreign currency translation adjustment
|
87 | 168 | ||||||
|
||||||||
Total comprehensive income
|
$ | 31,535 | $ | 22,932 | ||||
|
|
Three Months Ended | ||||||||||||||||
March 31, 2011 | March 31, 2010 | |||||||||||||||
(In thousands) | Sales | Gross Profit | Sales | Gross Profit | ||||||||||||
Carrier Networks
|
$ | 132,360 | $ | 79,498 | $ | 99,524 | $ | 59,266 | ||||||||
Enterprise Networks
|
33,162 | 19,297 | 27,503 | 16,062 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 165,522 | $ | 98,795 | $ | 127,027 | $ | 75,328 | ||||||||
|
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands) | 2011 | 2010 | ||||||
Carrier Systems
|
$ | 86,750 | $ | 58,093 | ||||
Business Networking
|
36,363 | 26,457 | ||||||
Loop Access
|
42,409 | 42,477 | ||||||
|
||||||||
Total
|
$ | 165,522 | $ | 127,027 | ||||
|
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands) | 2011 | 2010 | ||||||
|
||||||||
Growth Products
|
||||||||
Broadband Access (included in Carrier Systems)
|
$ | 51,782 | $ | 36,362 | ||||
Optical Access (included in Carrier Systems)
|
20,916 | 11,259 | ||||||
Internetworking (NetVanta & Multi-service Access
Gateways) (included in Business Networking)
|
32,883 | 22,183 | ||||||
|
||||||||
Total
|
105,581 | 69,804 | ||||||
|
||||||||
Traditional Products
|
||||||||
HDSL (does not include T1) (included in Loop Access)
|
40,945 | 39,930 | ||||||
Other products (excluding HDSL)
|
18,996 | 17,293 | ||||||
|
||||||||
Total
|
59,941 | 57,223 | ||||||
|
||||||||
|
||||||||
Total
|
$ | 165,522 | $ | 127,027 | ||||
|
Three Months Ended | ||||||||
March 31, | March 31, | |||||||
(In thousands) | 2011 | 2010 | ||||||
United States
|
$ | 153,113 | $ | 120,300 | ||||
International
|
12,409 | 6,727 | ||||||
|
||||||||
Total
|
$ | 165,522 | $ | 127,027 | ||||
|
|
Three Months Ended March 31, | ||||||||
(In thousands) | 2011 | 2010 | ||||||
Balance at beginning of period
|
$ | 3,304 | $ | 2,833 | ||||
Plus: Amounts charged to cost and expenses
|
835 | 771 | ||||||
Less: Deductions
|
(620 | ) | (703 | ) | ||||
|
||||||||
Balance at end of period
|
$ | 3,519 | $ | 2,901 | ||||
|
|
|
|