ADTRAN Acquires Nokia Siemens Networks Fixed Line Broadband Access Business

The Nokia Siemens Networks Fixed Line Broadband Access Business has been acquired by ADTRAN.

Some 400 employees will make their way to ADTRAN as a result of the deal, particularly those Nokia Siemens Networks workers engaged in engineering, research and development (R&D) and sales, according to TechCrunch.

Financial details on the deal were not immediately available. Listen to a recording of a recent conference call on the transaction here.

ADTRAN provides networking and communications equipment, and offers over 1,700 solutions that are used for voice, data, video and Internet communications, according to a company press release. They are used by service providers, businesses, government agencies and millions of people, according to a report from MobilityTechzone.

Its markets include public and private organizations in education, finance, food service, government, healthcare, hospitality, manufacturing, retail, transportation and the utility/energy sectors, according to a company statement.

Last year, Nokia Siemens Networks announced it will let go of some 17,000 employees by the close of 2013. The employees work around the world in different company locations. Its new focus is on mobile broadband and services. That leads to ADTRAN divesting or selling divisions that do not come under this new direction, according to TechCrunch.

During 2011, ADTRAN saw $717 million in revenue. Last month, ADTRAN reported first-quarter sales were $134,735,000, compared to $165,522,000 for the first quarter of 2011. Net income was $12,960,000 for the quarter compared to $34,258,000 for the first quarter of 2011.

Still, a long-term outlook by the company is positive.

“As expected, we saw an improvement late in the quarter after a slower than normal start in carrier spending,” ADTRAN CEO Tom Stanton said in a company press release. “As a result of this slow start, Broadband Access revenues for the quarter were $49.5 million, in range with the same period last year. Our Internetworking category saw another strong performance with revenues of $41.0 million, an increase of 25 percent from the same period last year. Revenues for our core product areas in total for the quarter were $104.7 million, basically flat compared to the same period last year.”

“Although the quarter did not meet our initial expectations,” Stanton added, “we believe the issues relate to timing, not market positioning, and that our strategic areas of focus are well aligned with global market trends and will provide long-term growth for our company.”