Auric, another warning in the edge of the network. These guys are big but more exposed than CSCO and ALA as a % of total revenues.
Perhaps there will be some life in a GSPN short in the near future.
ADCT warns:
Friday January 19, 4:53 am Eastern Time
ADC quarterly earnings to miss estimates
(UPDATE: Adds details, stock activity, previous MINNEAPOLIS)
NEW YORK, Jan 19 (Reuters) - Telecommunications equipment maker ADC
Telecommunications Inc. (NasdaqNM:ADCT - news) early on Friday said its fiscal
first-quarter earnings would fall short of Wall Street estimates because its customers have been spending less.
The Minneapolis-based company said it expected to post pro forma earnings in the range of five and seven cents a share for
the three months ended Jan. 31. That compared with the consensus analysts' estimate of 12 cents a share, according to market
research firm First Call/Thomson Financial.
The telecommunications industry has been hit hard by a slowdown in the U.S. economy, forcing companies to slash their
workforces and reduce their earnings targets.
Motorola Inc. (NYSE:MOT - news), one of the world's top mobile-phone makers, said this week it was shutting down
operations at its Harvard, Ill. campus, eliminating 2,500 jobs.
Ditech Communications Corp. (NasdaqNM:DITC - news), a global telecommunications equipment provider, earlier this month
warned its fiscal third-quarter earnings would miss estimates, in part because of lower customer spending.
ADC on Jan. 5 said it was laying off 400 systems integration workers, representing less than 2 percent of its workforce.
The company said it expects first-quarter sales of $800 million, compared with sales of $594 million in the year-ago period.
The company also cut its growth targets for the year.
International sales growth is strong, with quarterly international sales expected to account for 25 to 30 percent of total sales,
compared with 22 percent of total sales in last year's first quarter.
ADC said it expects revenue and pro forma earnings per share to increase by 15 percent in 2001, compared with earlier
estimates of 25 to 30 percent.
For the first quarter and the year, sales from its broadband connectivity operations are expected to be 50 to 55 percent of total
sales, the company said.
Broadband access and transport operations sales are expected to account for 25 to 30 percent of global sales. Sales from
integrated solutions operations should be 15 to 20 percent of total sales, ADC said.
The company also said it expects to take undetermined, non-recurring charges in the first and second quarters because of the
staff reductions and changes in product lines.
ADC shares closed up $2-9/16 at $21-5/16 in Thursday trading on the Nasdaq, below their 52-week high of $49 and above a
yearly low of $15-1/8.
biz.yahoo.com |
