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): January 17, 2017

ADTRAN, Inc.
(Exact name of registrant as specified in its charter)

 
					
Delaware	 	0-24612	 	63-0918200	
(State of Incorporation)	 	(Commission file number)	 	(I.R.S. Employer
Identification Number)	
901 Explorer Boulevard, Huntsville, Alabama 35806-2807
(Address of principal executive offices, including zip code)
(256) 963-8000
(Registrant’s telephone number, including area code)

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 Instruction 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))	

 

Item 2.02	Results of Operations and Financial Condition.	
On January 17, 2017, ADTRAN, Inc. announced its financial results for the fiscal quarter ended December 31, 2016 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 February 2, 2017. The ex-dividend date is January 31, 2017 and the payment date is February 16, 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 December 31, 2016 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 January 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 January 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 INDEX

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

EXHIBIT 99.1
ADTRAN, Inc.
REPORTS RESULTS for the FOURTH QUARTER 2016
and DECLARES QUARTERLY CASH DIVIDEND
HUNTSVILLE, AL.—January 17, 2017—ADTRAN, Inc. (NASDAQ:ADTN) reported results for the fourth quarter 2016. For the quarter, sales were $162,986,000 compared to $139,013,000 for the fourth quarter of 2015. Net income was $7,572,000 compared to $5,718,000 for the fourth quarter of 2015. Earnings per share, assuming dilution, were $0.16 compared to $0.12 for the fourth quarter of 2015. Non-GAAP earnings per share were $0.21 compared to $0.16 for the fourth quarter of 2015. The reconciliation between GAAP earnings per share, diluted, and non-GAAP earnings per share, diluted, is in the table provided.
ADTRAN Chief Executive Officer Tom Stanton stated, “Our revenue and EPS performance for the quarter exceeded expectations with total revenue increasing 17% over the same period last year. The solid fourth quarter and full year performance was a result of strong growth in our domestic business, driven by our leading market positions in CAF II and ultra-broadband solutions, continued growth in our services business, and the rebound of our international business. Our services and international businesses grew 55% and 46% respectively over the same period last year. Global demand for broadband continued to grow as we bolstered our market positions in the U.S and Europe. We continue to be encouraged by the positive momentum we are experiencing as service providers seek transformation to grow revenue, reduce costs, and accelerate service delivery and deployment.”
The Company also announced that its Board of Directors declared a cash dividend for the fourth quarter of 2016. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on February 2, 2017. The ex-dividend date is January 31, 2017, and the payment date is February 16, 2017.
The Company confirmed that its fourth quarter conference call will be held Wednesday, January 18, 2017, at 9:30 a.m. Central Time. This conference call will be web cast live through StreetEvents.com. To listen, simply visit the Investor Relations site at www.adtran.com or www.streetevents.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 will be available for seven days at www.streetevents.com. In addition, 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 at www.adtran.com for at least 12 months following the call.
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 info@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, 2015. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.

CONTACT:
Roger Shannon
Senior Vice President & CFO
256-963-8775	  	INVESTOR SERVICES/ASSISTANCE:
Gayle Ellis
Investor Services
256-963-8220	

Condensed Consolidated Balance Sheet
(Unaudited)
(In thousands)

 	  	December 31,
2016	 	  	December 31,
2015	 	
Assets	  				  				
Cash and cash equivalents	  	$	79,895	  	  	$	84,550	  	
Short-term investments	  	 	43,188	  	  	 	34,396	  	
Accounts receivable, net	  	 	92,346	  	  	 	71,917	  	
Other receivables	  	 	15,137	  	  	 	19,321	  	
Income tax receivable, net	  	 	760	  	  	 	—  	  	
Inventory	  	 	105,117	  	  	 	91,533	  	
Prepaid expenses and other current assets	  	 	16,459	  	  	 	10,145	  	
	  	 	 	 	  	 	 	 	
Total Current Assets	  	 	352,902	  	  	 	311,862	  	
			
Property, plant and equipment, net	  	 	84,469	  	  	 	73,233	  	
Deferred tax assets, net	  	 	38,036	  	  	 	37,015	  	
Goodwill	  	 	3,492	  	  	 	3,492	  	
Other assets	  	 	12,234	  	  	 	9,276	  	
Long-term investments	  	 	176,102	  	  	 	198,026	  	

Total Assets	  	$	667,235	  	  	$	632,904	  	

Liabilities and Stockholders’ Equity	  				  				
Accounts payable	  	$	77,342	  	  	$	48,668	  	
Unearned revenue	  	 	16,326	  	  	 	16,615	  	
Accrued expenses	  	 	12,434	  	  	 	12,108	  	
Accrued wages and benefits	  	 	20,433	  	  	 	12,857	  	
Income tax payable, net	  	 	—  	  	  	 	2,395	  	
	  	 	 	 	  	 	 	 	
Total Current Liabilities	  	 	126,535	  	  	 	92,643	  	
			
Non-current unearned revenue	  	 	6,333	  	  	 	7,965	  	
Other non-current liabilities	  	 	28,050	  	  	 	24,236	  	
Bonds payable	  	 	26,800	  	  	 	27,900	  	
	  	 	 	 	  	 	 	 	
Total Liabilities	  	 	187,718	  	  	 	152,744	  	
			
Stockholders’ Equity	  	 	479,517	  	  	 	480,160	  	

Total Liabilities and Stockholders’ Equity	  	$	667,235	  	  	$	632,904	  	

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

 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	December 31,	 	 	December 31,	 	
 	  	2016	 	 	2015	 	 	2016	 	 	2015	 	
Sales	  				 				 				 				
					
Products	  	$	126,793	  	 	$	115,699	  	 	$	525,502	  	 	$	527,422	  	
Services	  	 	36,193	  	 	 	23,314	  	 	 	111,279	  	 	 	72,642	  	

Total Sales	  	 	162,986	  	 	 	139,013	  	 	 	636,781	  	 	 	600,064	  	
					
Cost of Sales	  				 				 				 				
Products	  	 	67,790	  	 	 	62,104	  	 	 	270,695	  	 	 	293,843	  	
Services	  	 	24,409	  	 	 	14,470	  	 	 	74,742	  	 	 	39,324	  	

Total Cost of Sales	  	 	92,199	  	 	 	76,574	  	 	 	345,437	  	 	 	333,167	  	
					
Gross Profit	  	 	70,787	  	 	 	62,439	  	 	 	291,344	  	 	 	266,897	  	
					
Selling, general and administrative expenses	  	 	34,438	  	 	 	30,339	  	 	 	131,805	  	 	 	123,542	  	
Research and development expenses	  	 	32,077	  	 	 	29,300	  	 	 	124,804	  	 	 	129,876	  	

Operating Income	  	 	4,272	  	 	 	2,800	  	 	 	34,735	  	 	 	13,479	  	
					
Interest and dividend income	  	 	1,226	  	 	 	1,273	  	 	 	3,918	  	 	 	3,953	  	
Interest expense	  	 	(142	) 	 	 	(148	) 	 	 	(572	) 	 	 	(596	) 	
Net realized investment gain	  	 	1,769	  	 	 	1,907	  	 	 	5,923	  	 	 	10,337	  	
Other expense, net	  	 	(273	) 	 	 	(617	) 	 	 	(651	) 	 	 	(1,465	) 	
Gain on bargain purchase of a business	  	 	(8	) 	 	 	—  	  	 	 	3,542	  	 	 	—  	  	

Income before provision for income taxes	  	 	6,844	  	 	 	5,215	  	 	 	46,895	  	 	 	25,708	  	
Provision for income taxes	  	 	728	  	 	 	503	  	 	 	(11,666	) 	 	 	(7,062	) 	

Net Income	  	$	7,572	  	 	$	5,718	  	 	$	35,229	  	 	$	18,646	  	

Weighted average shares outstanding – basic	  	 	48,383	  	 	 	49,552	  	 	 	48,724	  	 	 	51,145	  	
Weighted average shares outstanding – diluted (1)	  	 	48,757	  	 	 	49,643	  	 	 	48,949	  	 	 	51,267	  	
					
Earnings per common share – basic	  	$	0.16	  	 	$	0.12	  	 	$	0.72	  	 	$	0.36	  	
Earnings per common share – diluted (1)	  	$	0.16	  	 	$	0.12	  	 	$	0.72	  	 	$	0.36	  	
 
(1)  	Assumes exercise of dilutive stock options calculated under the treasury stock method.	

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

 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	December 31,	 	 	December 31,	 	
 	  	2016	 	 	2015	 	 	2016	 	 	2015	 	
Net Income	  	$	7,572	  	 	$	5,718	  	 	$	35,229	  	 	$	18,646	  	

Other Comprehensive Income (Loss), net of tax:	  				 				 				 				
					
Unrealized losses on available-for-sale securities	  	 	(1,366	) 	 	 	(455	) 	 	 	(1,528	) 	 	 	(7,032	) 	
Defined benefit plan adjustments	  	 	(1,225	) 	 	 	1,651	  	 	 	(1,122	) 	 	 	1,862	  	
Foreign currency translation	  	 	(1,771	) 	 	 	73	  	 	 	(569	) 	 	 	(3,724	) 	

Other Comprehensive Income (Loss), net of tax	  	 	(4,362	) 	 	 	1,269	  	 	 	(3,219	) 	 	 	(8,894	) 	

Comprehensive Income, net of tax	  	$	3,210	  	 	$	6,987	  	 	$	32,010	  	 	$	9,752	  	

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

 	  	Twelve Months Ended	 	
 	  	December 31,	 	
 	  	2016	 	 	2015	 	
Cash flows from operating activities:	  				 				
Net income	  	$	35,229	  	 	$	18,646	  	
Adjustments to reconcile net income to net cash provided by operating activities:	  				 				
Depreciation and amortization	  	 	14,407	  	 	 	14,245	  	
Amortization of net premium on available-for-sale investments	  	 	643	  	 	 	2,402	  	
Net realized gain on long-term investments	  	 	(5,923	) 	 	 	(10,337	) 	
Net loss on disposal of property, plant and equipment	  	 	22	  	 	 	644	  	
Gain on bargain purchase of a business	  	 	(3,542	) 	 	 	—  	  	
Stock-based compensation expense	  	 	6,695	  	 	 	6,712	  	
Deferred income taxes	  	 	(2,685	) 	 	 	(692	) 	
Tax impact from stock option exercises	  	 	—  	  	 	 	(40	) 	
Excess tax benefits from stock-based compensation arrangements	  	 	(2	) 	 	 	(3	) 	
Change in operating assets and liabilities:	  				 				
Accounts receivable, net	  	 	(21,302	) 	 	 	14,918	  	
Other receivables	  	 	4,101	  	 	 	11,704	  	
Inventory	  	 	(10,887	) 	 	 	(6,877	) 	
Prepaid expenses and other assets	  	 	(7,108	) 	 	 	(5,070	) 	
Accounts payable	  	 	26,722	  	 	 	(5,826	) 	
Accrued expenses and other liabilities	  	 	8,792	  	 	 	(10,289	) 	
Income tax payable/receivable, net	  	 	(3,162	) 	 	 	(11,590	) 	
	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	42,000	  	 	 	18,547	  	

Cash flows from investing activities:	  				 				
Purchases of property, plant and equipment	  	 	(21,441	) 	 	 	(11,753	) 	
Proceeds from disposals of property, plant and equipment	  	 	—  	  	 	 	183	  	
Proceeds from sales and maturities of available-for-sale investments	  	 	225,075	  	 	 	280,435	  	
Purchases of available-for-sale investments	  	 	(209,172	) 	 	 	(188,921	) 	
Acquisition of business	  	 	(943	) 	 	 	—  	  	
	  	 	 	 	 	 	 	 	
Net cash provided by (used in) investing activities	  	 	(6,481	) 	 	 	79,944	  	

Cash flows from financing activities:	  				 				
Proceeds from stock option exercises	  	 	4,717	  	 	 	961	  	
Purchases of treasury stock	  	 	(25,817	) 	 	 	(66,160	) 	
Dividend payments	  	 	(17,583	) 	 	 	(18,449	) 	
Payments on long-term debt	  	 	(1,100	) 	 	 	(1,100	) 	
Excess tax benefits from stock-based compensation arrangements	  	 	2	  	 	 	3	  	
	  	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	(39,781	) 	 	 	(84,745	) 	

Net increase (decrease) in cash and cash equivalents	  	 	(4,262	) 	 	 	13,746	  	
Effect of exchange rate changes	  	 	(393	) 	 	 	(2,635	) 	
Cash and cash equivalents, beginning of period	  	 	84,550	  	 	 	73,439	  	

Cash and cash equivalents, end of period	  	$	79,895	  	 	$	84,550	  	

Supplemental disclosure of non-cash investing activities	  				 				
Purchases of property, plant and equipment included in accounts payable	  	$	2,103	  	 	$	598	  	

Supplemental Information
Restructuring Expenses
(Unaudited)
(In thousands)
Restructuring expenses were recorded in the following Consolidated Statements of Income categories for the three and twelve months ended December 31, 2016 and 2015:

 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	December 31,	 	 	December 31,	 	
 	  	2016	 	  	2015	 	 	2016	 	  	2015	 	
Restructuring expense included in cost of sales	  	$	14	  	  	$	5	  	 	$	1,321	  	  	$	112	  	
					
Selling, general and administrative expense	  	 	—  	  	  	 	8	  	 	 	637	  	  	 	846	  	
Research and development expense	  	 	—  	  	  	 	13	  	 	 	—  	  	  	 	2,108	  	

Restructuring expense included in operating expenses	  	 	—  	  	  	 	21	  	 	 	637	  	  	 	2,954	  	

Total restructuring expense	  	 	14	  	  	 	26	  	 	 	1,958	  	  	 	3,066	  	
Provision for income taxes	  	 	(4	) 	  	 	(10	) 	 	 	(607	) 	  	 	(1,196	) 	

Total restructuring expense, net of tax	  	$	10	  	  	$	16	  	 	$	1,351	  	  	$	1,870	  	

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 twelve months ended December 31, 2016 and 2015 for all three transactions are as follows:

 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	December 31,	 	 	December 31,	 	
 	  	2016	 	  	2015	 	 	2016	 	  	2015	 	
Bluesocket, Inc. acquisition	  				  				 				  				
Amortization of acquired intangible assets	  	$	158	  	  	$	174	  	 	$	662	  	  	$	817	  	

NSN BBA acquisition	  				  				 				  				
Amortization of acquired intangible assets	  	 	221	  	  	 	227	  	 	 	901	  	  	 	928	  	
Amortization of other purchase accounting adjustments	  	 	30	  	  	 	48	  	 	 	224	  	  	 	443	  	
Acquisition related professional fees, travel and other expenses	  	 	—  	  	  	 	14	  	 	 	—  	  	  	 	75	  	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Subtotal NSN BBA acquisition	  	 	251	  	  	 	289	  	 	 	1,125	  	  	 	1,446	  	

CommScope acquisition	  				  				 				  				
Amortization of acquired intangible assets	  	 	673	  	  	 	—  	  	 	 	785	  	  	 	—  	  	
Amortization of other purchase accounting adjustments	  	 	42	  	  	 	—  	  	 	 	126	  	  	 	—  	  	
Acquisition related professional fees, travel and other expenses	  	 	29	  	  	 	—  	  	 	 	74	  	  	 	—  	  	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Subtotal CommScope acquisition	  	 	744	  	  	 	—  	  	 	 	985	  	  	 	—  	  	

Total acquisition related expenses, amortizations and adjustments	  	 	1,153	  	  	 	463	  	 	 	2,772	  	  	 	2,263	  	
Provision for income taxes	  	 	(429	) 	  	 	(158	) 	 	 	(991	) 	  	 	(767	) 	

Total acquisition related expenses, amortizations and adjustments, net of tax	  	$	724	  	  	$	305	  	 	$	1,781	  	  	$	1,496	  	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
The acquisition related expenses, amortizations and adjustments above were recorded in the following Consolidated Statements of Income categories for the three and twelve months ended December 31, 2016 and 2015:

 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	December 31,	 	 	December 31,	 	
 	  	2016	 	  	2015	 	 	2016	 	  	2015	 	
Revenue (adjustments to deferred revenue recognized in the period)	  	$	—  	  	  	$	16	  	 	$	—  	  	  	$	212	  	
Cost of goods sold	  	 	43	  	  	 	3	  	 	 	232	  	  	 	55	  	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Subtotal	  	 	43	  	  	 	19	  	 	 	232	  	  	 	267	  	

Selling, general and administrative expenses	  	 	70	  	  	 	18	  	 	 	131	  	  	 	92	  	
Research and development expenses	  	 	1,040	  	  	 	426	  	 	 	2,409	  	  	 	1,904	  	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Subtotal	  	 	1,110	  	  	 	444	  	 	 	2,540	  	  	 	1,996	  	

Total acquisition related expenses, amortizations and adjustments	  	 	1,153	  	  	 	463	  	 	 	2,772	  	  	 	2,263	  	
Provision for income taxes	  	 	(429	) 	  	 	(158	) 	 	 	(991	) 	  	 	(767	) 	

Total acquisition related expenses, amortizations and adjustments, net of tax	  	$	724	  	  	$	305	  	 	$	1,781	  	  	$	1,496	  	

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

 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	December 31,	 	 	December 31,	 	
 	  	2016	 	  	2015	 	 	2016	 	  	2015	 	
Stock-based compensation expense included in cost of sales	  	$	107	  	  	$	78	  	 	$	389	  	  	$	280	  	
					
Selling, general and administrative expense	  	 	1,019	  	  	 	1,035	  	 	 	3,341	  	  	 	3,261	  	
Research and development expense	  	 	968	  	  	 	811	  	 	 	2,965	  	  	 	3,171	  	

Stock-based compensation expense included in operating expenses	  	 	1,987	  	  	 	1,846	  	 	 	6,306	  	  	 	6,432	  	

Total stock-based compensation expense	  	 	2,094	  	  	 	1,924	  	 	 	6,695	  	  	 	6,712	  	
Tax benefit for expense associated with non-qualified options	  	 	(320	) 	  	 	(242	) 	 	 	(963	) 	  	 	(862	) 	

Total stock-based compensation expense, net of tax	  	$	1,774	  	  	$	1,682	  	 	$	5,732	  	  	$	5,850	  	

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

 	  	Three Months Ended	 	  	Twelve Months Ended	 	
 	  	December 31,	 	  	December 31,	 	
 	  	2016	 	    	2015	 	  	2016	 	  	2015	 	
GAAP earnings per common share – diluted	  	$	0.16	  	    	$	0.12	  	  	$	0.72	  	  	$	0.36	  	
					
Restructuring expense	  	 	—  	  	    	 	—  	  	  	 	0.03	  	  	 	0.04	  	
Acquisition related expenses, amortizations and adjustments	  	 	0.01	  	    	 	0.01	  	  	 	0.04	  	  	 	0.03	  	
Stock-based compensation expense	  	 	0.04	  	    	 	0.03	  	  	 	0.12	  	  	 	0.11	  	
Gain on bargain purchase of a business	  	 	—  	  	    	 	—  	  	  	 	(0.07	) 	  	 	—  	  	

Non-GAAP earnings per common share – diluted	  	$	0.21	  	    	$	0.16	  	  	$	0.84	  	  	$	0.54	  	

EXHIBIT 99.2
Product and Segment Revenues
(New Reporting Structure)
(Unaudited)
(In thousands)

 	  	Three Months Ended	 	  	Twelve Months Ended	 	
 	  	December 31,	 	  	December 31,	 	
 	  	2016	 	  	2015	 	  	2016	 	  	2015	 	
Segment Revenues:	  				  				  				  				
Network Solutions	  	$	126,793	  	  	$	115,699	  	  	$	525,502	  	  	$	527,422	  	
Services & Support	  	 	36,193	  	  	 	23,314	  	  	 	111,279	  	  	 	72,642	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	162,986	  	  	$	139,013	  	  	$	636,781	  	  	$	600,064	  	

Category Revenues:	  				  				  				  				
Access & Aggregation	  	$	119,667	  	  	$	96,684	  	  	$	436,372	  	  	$	405,698	  	
Customer Devices	  	 	31,395	  	  	 	28,274	  	  	 	137,608	  	  	 	125,565	  	
Traditional & Other Products	  	 	11,924	  	  	 	14,055	  	  	 	62,801	  	  	 	68,801	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	162,986	  	  	$	139,013	  	  	$	636,781	  	  	$	600,064	  	

Sales by Geographic Region:	  				  				  				  				
United States	  	$	123,702	  	  	$	112,022	  	  	$	501,337	  	  	$	419,366	  	
International	  	 	39,284	  	  	 	26,991	  	  	 	135,444	  	  	 	180,698	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	162,986	  	  	$	139,013	  	  	$	636,781	  	  	$	600,064