ADC Telecom warns on 2Q
Telecom equipment maker to post loss of 10-15 cents per share, cut jobs
March 28, 2001: 6:52 a.m. ET


NEW YORK (Reuters) - ADC Telecommunications Inc., a telecom equipment maker, said Wednesday it plans to cut a further 3,000-4,000 jobs and expects to book a fiscal second-quarter loss, citing a slowdown in spending by its customers.

The Minneapolis-based company, which said it will take non-recurring and restructuring charges of an amount still to be determined, has already eliminated about 3,000 jobs to date in fiscal 2001.

ADC said it now expects second-quarter sales to be about $650-700 million. That's up to 16 percent lower than the $771 million in sales it registered in the year-ago period.

It forecast a loss -- excluding extraordinary charges -- for the period of 10-15 cents per share, compared with a year-ago profit of 10 cents per share.

Analysts were on average expecting the company to show a profit of 9 cents per share, according to market research firm First Call.

"The rapid downturn of telecommunications capital spending is clearly having a greater than anticipated impact on ADC's revenue and profits this year," Richard Roscitt, ADC's newly appointed chairman and chief executive, said in a statement.

ADC, whose products are used for high-speed Internet and voice lines, also warned of lower-than-expected sales and pro forma diluted earnings per share for full fiscal year 2001. But it said it would not provide detailed guidance due to"rapidly changing conditions."

The company said the elimination of 3,000 to 4,000 jobs worldwide would come in addition to the approximately 3,000 employee positions eliminated so far in fiscal year 2001 through reductions in force and attrition.

ADC (ADCT: Research, Estimates) shares finished up 44 cents at $10.56 Tuesday, near a 52-week low of $9.63. The stock has a 52-week high of $49.


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