HUNTSVILLE (dpa-AFX) – The US telecom equipment supplier ADTRAN slipped deeper into the red in the third quarter due to the takeover of the German company Adva (ADVA SE). In the months of July to September, the loss after minority interests more than quadrupled compared to the same period last year to almost 42 million dollars, the company said on Thursday when it presented detailed quarterly figures in Huntsville. Reasons for the large loss were costs related to the acquisition of Adva, depreciation and expenses for stock compensation programs.
Adjusted for these special items, Adtran earned $7.7 million, up from a loss of nearly $1 million a year earlier. Driven by the takeover – as has been known since October 25 – sales increased sharply to almost 341 million dollars. The proceeds were thus slightly above the range forecast by the group and also above the expectations of the experts. At 38.1 percent, the gross margin adjusted for special items was at the upper end of the company’s own expectations, it said at the end of October.
Adtran had completed the takeover of German competitor Adva (optical) in July and was therefore initially listed in the SDAX. In September, the company was promoted to the MDAX. The US group holds around two thirds of the Adva shares. According to index experts, these are about to return to the SDax. Adva is valued at just over EUR 1 billion after the stock’s recent run; Adtran comes to around 1.6 billion euros.
Adtran had offered Adva shareholders 0.8244 treasury shares. The German company was valued at EUR 17.17 per share when the bid was announced at the end of August. So far, the offer has paid off in full for the Adva shareholders – at least if they didn’t accept it. Adva price is up nearly 60 percent since the announcement. Adtran shares have since become around 16 percent cheaper./zb/stw/stk
Leverage must be between 2 and 20
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