BUSINESSWEEK'S HOT GROWTH COMPANIES

Hot Growth Special Report 2006 >

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85

ADTRAN (ADTN)

Adtran has learned how to turn phone wires into gold. Founded in 1986 following the breakup of AT&T into the Baby Bells, the Huntsville (Ala.)-company now makes more than 1,000 devices used by the Baby Bells and other telecommunications providers for everything from basic telephone service to Internet access to video services. Among Adtran's hot products: Network routers that sell for thousands less than those offered by Cisco Systems, a value proposition that has won Adtran many converts among small and midsize businesses. Adtran's profits have risen an average 55% over each of the past three years, to $101.2 million in 2005, on record sales of $513.2 million. Recently, Adtran's share price has dipped amid concerns as to whether it can sustain that heady growth. But some analysts believe the company still has room to run, as telecom providers such as AT&T and Verizon continue building out their DSL high-speed networks to more homes.

Company Info

2005 Rank

NR

Market Value*
($ Millions)

1,928.9

Sales*
($ Millions)

517.3

Sales Growth
(3-yr. avg. annual)

14.1 %

Profits*
($ Millions)

102.2

Profit Growth
(3-yr. avg. annual)

55.6 %

Return on Inv. Capital (3-yr.)

14.2 %

Share Price
12-Mo. Hi/Lo

33/20

Share Price
As of 4/28/06

25

Return on Equity

18.4 %

P/E Ratio

19

No. of Employees

1,594

Industry Communications Equipment
CURRENT
MARKET INFO

ADTN >

COMPANY WEB SITE >
Location Huntsville, Ala.
Phone 256 963-8000
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

ADTRAN engages in the design, development, manufacture, marketing, and servicing of network access products to the telecommunications services providers and enterprise end users in the U.S. and internationally. Its product lines include Systems, High Bit-rate Digital Subscriber Line (HDSL/T1), and Digital Business Transport (DBT). Systems product line includes broadband access platforms, OSP digital subscriber line access multiplexers, Internet protocol access routers, Ethernet switches, optical access multiplexers and service units, fixed wireless radios, M13/STS-1 multiplexers, narrowband access platforms, IMA concentrators, integrated access devices, and Internet security/firewall appliances and related access equipment. HDSL/T1 product line includes carrier-based HDSL, HDSL2, and HDSL4 solutions for the central office, outside plant, and customer premises; TDM-based SHDSL solutions; license-free wireless radios; and enterprise-based T1 and T3 data service units/channel service units and multiplexers. DBT product line consists of various products used to deploy integrated services digital network, digital data service, and frame relay services. The company provides its services to large and small independent telephone companies, competitive service providers, Internet service providers, long distance service providers, wireless service providers, and incumbent carriers and competitive service providers. It also serves private and public organizations in various markets, including finance, retail, food service, government, education, health-care, manufacturing, military, transportation, hospitality, and energy/utility. ADTRAN was incorporated in 1985 and has its headquarters in Huntsville, Ala.


Data provided by Capital IQ
 
Thomas R. Stanton

Thomas R. Stanton, 41

Chief Executive Officer and Director


Total Compensation*

$ 628,008

Total Options Value*

$ 9,104,559

* Fiscal Year 2005

DEGREES HELD
Auburn University - BS


Executive Bio

Thomas Stanton has been a director and CEO of Adtran since September, 2005. Stanton served as senior vice-president of Adtran from 2001 until September, 2005. Prior to that, he held various positions at Carrier Networks, a division of Adtran, including general manager and vice-president.


Management Team

Key Executives

Thomas R. Stanton; Mark C. Smith; Danny J. Windham; Robert A. Fredrickson; Steven L. Harvey; Everette R. Ramage; Kevin W. Schneider; P. Steven Locke

Board Directors

H. Fenwick Huss; Mark C. Smith; Danny J. Windham; Thomas R. Stanton; W. Frank Blount; William L. Marks; Roy J. Nichols; James L. North


Executive Data provided by Capital IQ