On July 17, 2019, after the market closed, ADTRAN disclosed preliminary earnings for the quarter ended June 30, 2019 and disclosed, among other things that "[t]he Company's reported results for the quarter and year to date ended June 30, 2019 are preliminary due to the Company's ongoing assessment of the reasonableness of its current and previously reported excess and obsolete inventory reserves ("E&O reserves") . . . In addition to assessing the reasonableness of its E&O reserves, the Company is also assessing inventory related internal control deficiencies which may result in the identification of material weaknesses. If material changes to our preliminary results do occur, an updated press release will be issued."
The next trading day, ADTRAN shares declined over 23% to close at $12.03 per share on heavier than usually volume.
On August 12, 2019, the Company disclosed that "subsequent to the issuance of the Company's Annual Report on Form 10-K for the year ended December 31, 2018 ("2018 Form 10-K"), the Company's management, in consultation with the Audit Committee of the Board of Directors, concluded that there were two material weaknesses related to internal control deficiencies that existed as of December 31, 2018 and that continued through the end of the second quarter of 2019. . . Due to the Company's ongoing assessment of the accuracy and reasonableness of its current and previously reported E&O Reserves, the Company is not able to complete its interim unaudited financial statements and file the Q2 Form 10-Q on or prior to the due date without unreasonable effort or expense. Upon completion of such assessment, the Company intends to file the Q2 Form 10-Q, as well as the Form 10-K/A, as soon as practicable thereafter."
On October 9, 2010, after the close of trading, the Company disclosed preliminary third quarter revenue and earnings estimates, and stated, in part, that "[b]ased upon preliminary information, revenue for the quarter is expected to be approximately $114 million. Earnings per share for the quarter, assuming dilution, is expected to be a loss of approximately $0.96. Non-GAAP earnings per share for the quarter, assuming dilution, is expected to be a loss of approximately $0.06. Earnings per share is expected to be affected by a one-time, non-cash, valuation allowance of approximately $37 million, that will be recorded to income tax expense in the Company's consolidated income statement to reduce the carrying value of the Company's deferred tax assets."
On October 10, 2019, ADTRAN shares declined as much 23% on heavier than usually volume. TheStreet.com reported that "Adtran (ADTN - Get Report) stock was downgraded to neutral from buy by MKM Partners' analyst Michael Genovese. The stock is a 'show-me story that could take time to bring many investors back from the sidelines,' Genovese said, lowering his price target to $11 from $17. That $11 level is the lowest on Wall Street. . . Based on preliminary information, revenue for the quarter is expected to be about $114 million. The FactSet consensus is $135.8 million."
If you purchased ADTRAN shares, and would like to discuss our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has decades of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about your rights or interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP