UPDATE 1-Adtran sees Q2 revenue rising sequentially; shares jump
* Sees Q2 gross margin in the high 50 pct levels
* Shares rise 10 pct
By Shrutika Verma
BANGALORE, April 15 (Reuters) - Networking and communications equipment provider Adtran Inc (ADTN.O: Quotazione) said it expects second-quarter revenue to rise in the mid-to-high single-digit range sequentially, despite a slowdown in carrier spending.
Shares of the company, which on Tuesday reported a strong first quarter, rose 10 percent to $20.12 in afternoon trade Wednesday on Nasdaq.
The company's Tier 1 customer base, which includes AT&T Inc (T.N: Quotazione) and Verizon Communications Inc (VZ.N: Quotazione), is driving growth for its products, Kaufman Brothers analyst Colby Synesael said by phone.
In the first quarter, AT&T and Verizon contributed 29 percent and 11 percent, respectively, to the company's total revenue of $110.4 million.
Late Tuesday, Adtran, which competes with Cisco Systems (CSCO.O: Quotazione) and Juniper Networks JNPR.O, reported first-quarter earnings of 24 cents a share, beating Wall Street estimate of 22 cents, according to Reuters Estimates. [ID:nWNAB3365]
The Huntsville, Alabama-based company expects second-quarter margins to be in the high 50 percent levels, a company executive said in a conference call with analysts. Continua...