EVOLVE For nearly three decades, ADTRAN’s continued  evolution has enabled the company to advance  in a dynamic and challenging marketplace.  A key evolutionary objective for the company has  been to successfully transition our customers from  legacy products to the next-generation core solutions  of the future. In 2013, that strategy proved effective as  core solutions grew to 87 percent of company revenue.  sales when compared to the second half of 2012. For  the full year, international sales were up 24 percent  and company revenue came in at $641.7 million, up  three percent over the previous year. Another evolutionary objective for the company was globalization. While we continued to gain market share with traditional U.S. carrier custom- ers, we also realized significant growth from some  of the largest network operators around the world.  The U.S. carrier market remained soft throughout  the year; however our globalization efforts began to  make a meaningful contribution in the second half.  This resulted in a 48 percent increase in International  The successful transition of our business has enabled  the company to meet the changing needs of our global  customer base. As we strengthened our focus on core  products, we continued to maintain a strong investment  in Research and Development (R&D). This focus on  product development enabled us to capitalize in the  major product initiatives underway in areas such as  Ultra Broadband, IP transition and cloud services.  These initiatives represent significant market op- portunities for our company and our industry as a  whole and we are positioning the company to remain  at the technology forefront as these initiatives evolve.  Our R&D investment paid dividends in 2013 as we  successfully secured several major market wins in  the U.S., Europe and Latin America. It also resulted  in several significant new product announcements  in 2013, including exciting new gigabit services  platforms, the industry’s first advanced services fiber  access gateway for Enterprise and mobile connectiv- ity, packet optical solutions for high-capacity access  aggregation, expansion of our market-leading Carrier  Ethernet portfolio and ProCloud SM , ADTRAN’s first  cloud service offering.  ADTRAN 2013 Annual Report 4 2011 2009 2010 $27.78 $31.83 $84.43 $150.25 $185.75 2012 2013 International  Revenue ($M)