ADC Shares Slump After Lackluster 3Q Results

NEW YORK (AP) — Shares of ADC Telecommunications Inc. slipped Wednesday after third-quarter results signaled little improvement in demand.

ADC reported late Tuesday it lost $800,000, or a penny a share, for the three months ended July 31, reversing a year-earlier profit of $15.1 million, or 13 cents a share. Sales sank 26 percent to $283.4 million from $381.8 million a year earlier.

In a note to investors Wednesday, Robert W. Baird analyst Kenneth Muth reiterated a "Neutral" rating on the company's stock. He said the third-quarter results "did not reveal any incremental positives," with demand still "flattish" and growth opportunities uncertain.

The company's outlook was lackluster as well. ADC projected fourth-quarter sales of $160 million to $175 million, though a shift in its fiscal year will shorten the quarter from three months to two.

Simon Leopold, an analyst with Morgan Keegan, said the forecast implies "weaker sales than expected." He kept a "Market Perform" rating on the stock.

Shares slid 44 cents, or 5.3 percent, to $7.85 in midday trading Wednesday.