What happened

Shares of ADTRAN (NASDAQ:ADTN) have plunged today, down by 14% as of 2:45 p.m. EDT, after the company reported third-quarter earnings yesterday. Both top- and bottom-line results declined meaningfully from a year ago.

So what

Revenue in the third quarter was $140.3 million, down from $185.1 million a year ago. Non-GAAP earnings per share came in at $0.21, also down from $0.37 per share in adjusted profit in the year-ago period. On a GAAP basis, the telecommunications networking equipment company posted net income of $7.6 million, or $0.16 per share.

Fiber-optic networking equipment

Image source: Getty Images.

On the bright side, CEO Tom Stanton noted that gross margin improved on a sequential basis, rising from 39% in the second quarter to 42%. However, gross margin a year ago was 53%.

Now what

"Notwithstanding the G.fast shipment impact, our third quarter results showed strong improvements in gross margins and operating expenses. On a regional basis, sales contributions followed typical seasonal patterns with growth in the Americas, expected seasonal declines in Europe and growth in Asia-Pacific, driven by new customer activity," Stanton said in a statement. "Looking forward, we are very encouraged by the continued momentum in ultra-broadband shipments to both carriers and MSOs globally as service providers continue to evolve their networks to meet changing customer expectations."

ADTRAN also declared a quarterly dividend of $0.09 per share to be paid to shareholders of record as of Oct. 31, 2018.

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.