Strong Guidance Lifts ADC

ADC Telecom (ADCT Quote) posts strong fiscal first-quarter numbers and guides higher for the year.

The Minneapolis telecom networking shop posted pro forma earnings of 14 cents a share, excluding charges such as amortization and stock option compensation. That number compares with an adjusted profit of 9 cents a year ago. Analysts were looking for a 6-cent-a-share adjusted profit, according to Reuters Research.

Sales for the quarter were $297.2 million, which is down from the prior quarter's $307.4 million but up from the year-ago level of $272.8. Analysts had been looking for sales of $263 million.

"We are pleased with this performance in the face of several customer timing variables, including merger integration in the U.S. and regulatory reviews in other countries," CEO Bob Switz said in a press release.

Looking ahead, the company expects earnings from continuing operations to be about 86 cents a share on sales in a range between $1.26 billion and $1.29 billion in fiscal 2007.

Analysts had expected sales of about $1.27 billion in the fiscal year ending in October.

ADC shares rose 87 cents, or 6%, to $16.14 in after-hours trading Monday.