UPDATE 1-Adtran Q2 tops view, sees sequential rise in Q3 revenue
* Sees Q3 revenue up sequentially by 3 pct to 5 pct
* Sees gross margins in high 50s for rest of 2009
* Q2 sales $121.5 mln vs $ 131.2 mln last year
* Q2 EPS $0.30 vs $0.34 last year
July 15 (Reuters) - Adtran Inc (ADTN.O) posted second-quarter earnings that beat market estimates and forecast a 3 percent to 5 percent sequential rise in third-quarter revenue.
The company, which provides networking and communications equipment, said second-quarter results were driven by increased sales at its broadband access, optical access and internetworking businesses.
Adtran, which had a gross margin of 59 percent in the second quarter, expects it to remain in the high 50s for the rest of the year.
Adtran, which competes with larger firms like Cisco Systems (CSCO.O), Alcatel-Lucent (ALUA.PA) and Juniper Networks JNPR.O, posted a second-quarter net income of $18.9 million, or 30 cents a share, compared with $22.4 million, or 34 cents a share, last year.
Sequential revenue growth projection of 3 percent to 5 percent would imply revenue of $125.1 million to $127.6 million for the third quarter.
Analysts expect revenue of $126.3 million for the period.
Sales for the second quarter fell by about 7 percent to $121.5 million even as it beat analysts' expectations of $118 million, according to Reuters Estimates.
Adtran's stock, which has risen about 35 percent over the last six months, was trading flat at $21.75 late afternoon on Nasdaq. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Maju Samuel)
