Adtran Inc (NASDAQ:ADTN) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 10:30 am ET

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Adtran Inc (NASDAQ:ADTN) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Thank you for standing by, and welcome to ADTRAN's Second Quarter 2020 Earnings Release Conference Call. [Operator Instructions] During the course of the conference call, ADTRAN representatives expect to make forward-looking statements, which reflect management best judgment based on factors currently known. However, these statements involve risks and uncertainties, including the continued spread and the extent of the impact of the COVID-19 global pandemic, the ability of component supplies to align with customer demand, the successful development and market acceptance of our products, competition in the market for such products, the product and channel mix, component costs, manufacturing efficiencies and other risks detailed in our annual report on Form 10-K for the year ended December 31, 2019. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements, which may be made during the call.

It is now my pleasure to turn the call over to Tom Stanton, Chief Executive Officer of ADTRAN. Sir, please go ahead.

Executive
Thomas R. Stanton

Thank you, Tamia. Good morning, everyone. We appreciate you joining us for our second quarter 2020 conference call. With me today is ADTRAN's CFO, Mike Foliano. Following my opening remarks, Mike will review the quarterly financial performance in detail, and then we'll take your questions. To begin, I'd like to address the ongoing COVID-19 pandemic. Given our global operations, we have been carefully monitoring the COVID environment in all regions where our employees and customers reside. We continue to strive to deliver the right solution to help people stay connected through these difficult times. ADTRAN has been extremely proactive in taking significant measures to protect our employees, partners and customers, and I want to thank our employees for the diligence they're using to keep themselves and others safe. One thing that is abundantly clear thus far through the pandemic is the vital importance of high-speed broadband connectivity. And ADTRAN is committed to providing an exceptional broadband experience to help drive the global economic recovery. Whether it's work on home, school from home, enabling virtual health care, keeping businesses running or keeping families connected, we are doing what we can to make that experience exceptional. 2020 continues to be a pivotal year for the company. The fiber investment cycle has continued to accelerate globally aided by government actions to encourage broadband service providers to limit and/or ban the threat of high-risk vendors in their critical infrastructure. This timing aligns well with these operators' plan to transition to next-generation software-defined architectures, creating tremendous new opportunities for ADTRAN in our SDX and Mosaic Cloud platforms.

Furthermore, the need for network and home virtualization to provide better connectivity, enable remote customer connections and changes and provide a better integrated experience is fueling our momentum with our Mosaic software subscription services. During the quarter, we made tremendous progress in capturing new customer opportunities with next-generation platforms, subscription software and services. We exited the first half of 2020 with very strong momentum in our fiber business with a good mix of awards in both