|
|
|
|
|
|
|
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(In thousands) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
|
||||||||||||||||
Stock-based compensation expense included in
cost of sales
|
$ | 73 | $ | 59 | $ | 141 | $ | 130 | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Selling, general and administrative expense
|
835 | 674 | 1,585 | 1,502 | ||||||||||||
Research and development expense
|
900 | 859 | 1,771 | 1,779 | ||||||||||||
|
||||||||||||||||
Stock-based compensation expense included in
operating expenses
|
1,735 | 1,533 | 3,356 | 3,281 | ||||||||||||
|
||||||||||||||||
|
||||||||||||||||
Total stock-based compensation expense
|
1,808 | 1,592 | 3,497 | 3,411 | ||||||||||||
Tax benefit for expense associated with
non-qualified options
|
(195 | ) | (156 | ) | (372 | ) | (296 | ) | ||||||||
|
||||||||||||||||
Total stock-based compensation expense, net of tax
|
$ | 1,613 | $ | 1,436 | $ | 3,125 | $ | 3,115 | ||||||||
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Expected volatility
|
39.94 | % | — | 41.00 | % | 42.79 | % | |||||||||
Risk-free interest rate
|
2.45 | % | — | 2.50 | % | 1.45 | % | |||||||||
Expected dividend yield
|
1.31 | % | — | 1.53 | % | 2.35 | % | |||||||||
Expected life (in years)
|
5.04 | — | 5.18 | 4.88 | ||||||||||||
Weighted-average estimated value
|
$ | 9.39 | $ | — | $ | 8.19 | $ | 4.77 |
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, 2009
|
6,916 | $ | 20.42 | 6.05 | $ | 25,719 | ||||||||||
Options granted
|
14 | $ | 23.64 | |||||||||||||
Options cancelled/forfeited
|
(28 | ) | $ | 21.77 | ||||||||||||
Options exercised
|
(513 | ) | $ | 14.64 | ||||||||||||
|
||||||||||||||||
Options outstanding, June 30, 2010
|
6,389 | $ | 20.88 | 5.76 | $ | 45,000 | ||||||||||
|
||||||||||||||||
Options exercisable, June 30, 2010
|
4,099 | $ | 20.87 | 4.26 | $ | 30,382 | ||||||||||
|
|
Fair Value / | ||||||||||||||||
Amortized | Gross Unrealized | Carrying | ||||||||||||||
(In thousands) | Cost | Gains | Losses | Value | ||||||||||||
|
||||||||||||||||
Deferred compensation plan assets
|
$ | 3,197 | $ | 398 | $ | (85 | ) | $ | 3,510 | |||||||
Corporate bonds
|
75,905 | 921 | (101 | ) | 76,725 | |||||||||||
Municipal fixed-rate bonds
|
112,850 | 490 | (19 | ) | 113,321 | |||||||||||
Municipal variable rate demand notes
|
83,643 | — | — | 83,643 | ||||||||||||
Fixed income bond fund
|
526 | 184 | — | 710 | ||||||||||||
Marketable equity securities
|
10,413 | 22,607 | (674 | ) | 32,346 | |||||||||||
|
||||||||||||||||
Available-for-sale securities held at fair value
|
$ | 286,534 | $ | 24,600 | $ | (879 | ) | $ | 310,255 | |||||||
|
||||||||||||||||
Restricted investment held at cost
|
48,250 | |||||||||||||||
Other investments held at cost
|
2,256 | |||||||||||||||
|
||||||||||||||||
Total carrying value of available-for-sale investments
|
$ | 360,761 | ||||||||||||||
|
Fair Value Measurements at June 30, 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
|
$ | 9,043 | $ | 9,043 | $ | — | $ | — | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Deferred compensation plan assets
|
3,510 | 3,510 | — | — | ||||||||||||
Available-for-sale debt securities
|
||||||||||||||||
Corporate bonds
|
76,725 | — | 76,725 | — | ||||||||||||
Municipal fixed-rate bonds
|
113,321 | — | 113,321 | — | ||||||||||||
Municipal variable rate demand notes
|
83,643 | — | 83,643 | — | ||||||||||||
Fixed income bond fund
|
710 | 710 | — | — | ||||||||||||
Available-for-sale equity securities
|
||||||||||||||||
Equity securities — technology industry
|
22,726 | 22,726 | — | — | ||||||||||||
Equity securities — other
|
9,620 | 9,620 | — | — | ||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
310,255 | 36,566 | 273,689 | — | ||||||||||||
|
||||||||||||||||
Total
|
$ | 319,298 | $ | 45,609 | $ | 273,689 | $ | — | ||||||||
|
Fair Value Measurements at December 31, 2009 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
|
$ | 18,370 | $ | 18,370 | $ | — | $ | — | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Deferred compensation plan assets
|
3,424 | 3,424 | — | — | ||||||||||||
Available-for-sale debt securities
|
||||||||||||||||
Corporate bonds
|
20,414 | — | 20,414 | — | ||||||||||||
Municipal fixed-rate bonds
|
141,285 | — | 141,285 | — | ||||||||||||
Municipal variable rate demand notes
|
84,359 | — | 84,359 | — | ||||||||||||
Fixed income bond fund
|
1,163 | 1,163 | — | — | ||||||||||||
Available-for-sale equity securities
|
||||||||||||||||
Equity securities — technology industry
|
23,491 | 23,491 | — | — | ||||||||||||
Equity securities — other
|
10,044 | 10,044 | — | — | ||||||||||||
|
||||||||||||||||
Available-for-sale securities
|
284,180 | 38,122 | 246,058 | — | ||||||||||||
|
||||||||||||||||
Total
|
$ | 302,550 | $ | 56,492 | $ | 246,058 | $ | — | ||||||||
|
|
June 30, | December 31, | |||||||
(In thousands) | 2010 | 2009 | ||||||
Raw materials
|
$ | 46,337 | $ | 33,930 | ||||
Work in progress
|
5,262 | 2,662 | ||||||
Finished goods
|
20,698 | 16,832 | ||||||
Inventory reserves
|
(8,350 | ) | (7,750 | ) | ||||
|
||||||||
Total
|
$ | 63,947 | $ | 45,674 | ||||
|
|
Stockholders’ | ||||
(In thousands) | Equity | |||
Balance, December 31, 2009
|
$ | 452,515 | ||
Net income
|
45,945 | |||
Dividend payments
|
(11,171 | ) | ||
Dividends accrued for unvested restricted stock units
|
(14 | ) | ||
Net change in unrealized gains and losses on marketable securities (net of deferred taxes)
|
(1,268 | ) | ||
Foreign currency translation adjustment
|
(602 | ) | ||
Proceeds from stock option exercises
|
7,409 | |||
Tax benefits from stock option exercises
|
1,757 | |||
Stock-based compensation expense
|
3,497 | |||
Purchases of treasury stock
|
(10,330 | ) | ||
|
||||
Balance, June 30, 2010
|
$ | 487,738 | ||
|
Record Date | Payment Date | Per Share Amount | Total Dividend Paid | |||||||||
February 4, 2010
|
February 18, 2010 | $ | 0.09 | $ | 5,577 | |||||||
April 29, 2010
|
May 13, 2010 | $ | 0.09 | $ | 5,594 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(In thousands) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
|
||||||||||||||||
Net income
|
$ | 27,751 | $ | 18,839 | $ | 45,945 | $ | 34,023 | ||||||||
Net change in unrealized gains and losses related to:
|
||||||||||||||||
Marketable securities, net of deferred tax benefit
(expense) of $3,404 and $(2,172) for the three months
ended June 30, 2010 and 2009, respectively, and
$631 and $(2,501) for the six months ended June 30,
2010 and 2009, respectively
|
(5,678 | ) | 3,621 | (1,056 | ) | 4,185 | ||||||||||
Impaired marketable securities, net of deferred tax benefit
(expense) of $96 and $34 for the three months ended
June 30, 2010 and 2009, respectively, and $127 and $(930)
for the six months ended June 30, 2010 and 2009,
respectively
|
(160 | ) | (72 | ) | (212 | ) | 1,542 | |||||||||
Foreign currency translation adjustment
|
(770 | ) | 1,622 | (602 | ) | 1,631 | ||||||||||
|
||||||||||||||||
Total comprehensive income
|
$ | 21,143 | $ | 24,010 | $ | 44,075 | $ | 41,381 | ||||||||
|
|
Three Months Ended | ||||||||||||||||
June 30, 2010 | June 30, 2009 | |||||||||||||||
(In thousands) | Sales | Gross Profit | Sales | Gross Profit | ||||||||||||
Carrier Networks
|
$ | 117,579 | $ | 70,273 | $ | 91,766 | $ | 53,508 | ||||||||
Enterprise Networks
|
32,782 | 19,056 | 29,762 | 18,182 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 150,361 | $ | 89,329 | $ | 121,528 | $ | 71,690 | ||||||||
|
Six Months Ended | ||||||||||||||||
June 30, 2010 | June 30, 2009 | |||||||||||||||
(In thousands) | Sales | Gross Profit | Sales | Gross Profit | ||||||||||||
Carrier Networks
|
$ | 217,103 | $ | 129,539 | $ | 178,850 | $ | 107,763 | ||||||||
Enterprise Networks
|
60,285 | 35,118 | 53,042 | 31,387 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 277,388 | $ | 164,657 | $ | 231,892 | $ | 139,150 | ||||||||
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(In thousands) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Carrier Systems
|
$ | 73,148 | $ | 56,210 | $ | 131,241 | $ | 98,939 | ||||||||
Business Networking
|
32,165 | 26,432 | 58,622 | 46,444 | ||||||||||||
Loop Access
|
45,048 | 38,886 | 87,525 | 86,509 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 150,361 | $ | 121,528 | $ | 277,388 | $ | 231,892 | ||||||||
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(In thousands) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
|
||||||||||||||||
Growth Products
|
||||||||||||||||
Broadband Access (included in Carrier Systems)
|
$ | 44,971 | $ | 31,391 | $ | 81,333 | $ | 53,610 | ||||||||
Optical Access (included in Carrier Systems)
|
16,128 | 13,514 | 27,387 | 24,166 | ||||||||||||
Internetworking (NetVanta & Multi-service Access
Gateways) (included in Business Networking)
|
27,902 | 20,427 | 50,085 | 35,742 | ||||||||||||
|
||||||||||||||||
Total
|
89,001 | 65,332 | 158,805 | 113,518 | ||||||||||||
|
||||||||||||||||
Traditional Products
|
||||||||||||||||
HDSL (does not include T1) (included in Loop Access)
|
42,174 | 34,349 | 82,104 | 77,270 | ||||||||||||
Other products (excluding HDSL)
|
19,186 | 21,847 | 36,479 | 41,104 | ||||||||||||
|
||||||||||||||||
Total
|
61,360 | 56,196 | 118,583 | 118,374 | ||||||||||||
|
||||||||||||||||
|
||||||||||||||||
Total
|
$ | 150,361 | $ | 121,528 | $ | 277,388 | $ | 231,892 | ||||||||
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(In thousands) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
United States
|
$ | 142,046 | $ | 115,085 | $ | 262,346 | $ | 218,503 | ||||||||
International
|
8,315 | 6,443 | 15,042 | 13,389 | ||||||||||||
|
||||||||||||||||
Total
|
$ | 150,361 | $ | 121,528 | $ | 277,388 | $ | 231,892 | ||||||||
|
|
Six Months Ended | ||||||||
June 30, | ||||||||
(In thousands) | 2010 | 2009 | ||||||
Balance at beginning of period
|
$ | 2,833 | $ | 2,812 | ||||
Plus: Amounts charged to cost and expenses
|
1,377 | 1,225 | ||||||
Less: Deductions
|
(1,050 | ) | (1,265 | ) | ||||
|
||||||||
Balance at end of period
|
$ | 3,160 | $ | 2,772 | ||||
|
|
|
|