Net income for the quarter was $3,959,000 compared to $16,795,000 for the first quarter of 2000. Earnings per share, assuming dilution, was $.10 compared to $.42 for the first quarter of 2000. Gross margin improved to 43% compared to 39% in the fourth quarter of 2000.
ADTRAN President and Chief Operating Officer Howard Thrailkill stated, While our enterprise business recorded significant sequential growth, our carrier business was slowed by seasonal patterns and market cross-currents, causing overall revenue to be less than expected. We were pleased to see gross margin improve as new generation HDSL2 products began to ship in volume, sales of systems products increased and component prices returned to more normal levels.
