Communications Equipment Makers to Benefit from Rising Capital Spending by Telecom Service Providers

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Communications Equipment Makers to Benefit from Rising Capital Spending by Telecom Service Providers

The Provides Stock Research onADTRAN Inc. and Sonus Networks Inc.

New York City, New York -- Telecommunications service providers have been investing heavily as they look to keep pace with rising network utilization loads. The increasing capital spending by service providers offers a significant opportunity to communications equipment companies such as ADTRAN Inc. (NASDAQ: ADTN) and Sonus Networks Inc. (NASDAQ: SONS).

Access our free reports onADTRAN Inc. and Sonus Networks Inc.Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at

The growth in the communications equipment industry is being driven by increasing demand for high-speed Internet. The demand is expected to continue, driven by growth in wireless data and video. Telecommunications service providers will have to continue to boost capital spending in order to upgrade their networks. For communications equipment industry, the increasing capital spending from service providers represents an excellent opportunity.

Last week, Sonus Networks released results of a new report, “Enterprises Place 2013 Unified Communications Bets: How Many Horses in This Race?”, which showed the market outlook for enterprise Unified Communications remains strong. The report, which was commissioned by Sonus and conducted by independent Webtorials Editorial and Analyst Division, showed that 78% of the respondents had either fully or partially deployed Unified Communications solutions.Sonus Networks research is available today at

On Wednesday, Sonus Networks announced that Spain’s leading telecommunications provider, Ibercom selected the Sonus SBC 5200 to secure its network border, enable enterprise SIP trunking and provide SIP interconnected to carrier partners. Serge Adam, Vice President, EMEA at Sonus Networks, said that the Sonus SBC portfolio is proving that it is the reliable choice for service providers and enterprises looking to expand their business opportunities, while protecting their legacy investments.

Investors, meanwhile, are waiting for Sonus Networks’ financial results for the fourth quarter. The company will release its quarterly results on February 28, 2013. Back in November 2012, the company had forecasted fourth quarter revenue at $77 million to $81 million. For the full-year 2012, the company forecasted total revenue of $256 million to $260 million. Our free research report onADTRAN Inc.can be downloaded upon registration at

Elsewhere in the industry, ADTRAN reported its financial results for the fourth quarter for 2012 last month. The company reported fourth quarter sales of $139.76 million, down from $175.29 million reported for the same period in the previous year. The company’s net income for the quarter was $3.961 million, or $0.06 per share, compared to $31.16 million, or $0.48 per share, reported for the same period in the previous year.

Tom Stanton, CEO of ADTRAN, said that the company’s fourth quarter results came in largely as expected with both its carrier and enterprise division performing to forecast. Stanton noted that the company’s focus remains on capitalizing on the significant network upgrades that lie ahead of it while maintaining tight cost control as it navigates through the current environment.

On Wednesday, ADTRAN announced that Glandorf Telephone Company will be using its Total Access 5000 broadband platform to enable high-speed broadband and video service to households in Northwest Ohio. ADTN’s Total Access 5000 platform enables increased bandwidth for next-generation data and video services for residential customers.



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