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ADC reports first quarter results

ADC Telecommunications Inc. www.adc.com today announced unaudited results for its first quarter ended Jan. 30, 2009...


March 3, 2009  


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ADC Telecommunications Inc. www.adc.com today announced unaudited results for its first quarter ended Jan. 30, 2009. The company reported first quarter revenue of $254 million and a GAAP net loss from continuing operations of $443 million or ($4.45) per share.

 

This GAAP net loss includes after-tax charges of $435 million, including a $409 million non-cash impairment of goodwill and other intangible assets, a $17 million write-down of auction rate securities and other investments, and $9 million of purchased intangible amortization and restructuring charges. The non-GAAP (adjusted) net loss for the quarter was $7 million or ($0.07) per share. All figures quoted are in U.S. dollars.

 

“ADC continues to manage prudently through the global recession,” said Robert Switz, chairman, president and CEO of ADC. “Our restructuring initiatives announced in October 2008 are already providing benefits to ADC as demonstrated by our nearly 31% gross margins for the quarter, which are in line with the previous quarter’s adjusted margins despite a substantial decrease in revenue.

 

“As indicated by slower customer spending during the first quarter, we anticipate that 2009 will continue to be challenging for ADC and our global customer base. However, our technology remains important to the building of fiber-based and wireless next-generation networks.”