ADC Telecom Shares Fall After 3Q Loss
MINNEAPOLIS (
) -- The boogeyman -- also called the global recession -- reared its ugly head in another quarterly earnings report. This time,
ADC Telecom
(ADCT) - Get Report
took a hit in its third quarter, as sales plunged 26% and charges impacted the bottom-line.
Following the earnings announcement after the market close yesterday, investors sent shares down 35 cents, or 4.2%, to $7.94 just after the opening bell today.
ADC Telecom, which makes equipment and software for telecom networks, posted an $800,000 loss, or 1 cent per share, compared to a $15.1 million net income, or 13 cents per share, in the year-earlier quarter. But after excluding certain impacts, like $10.9 million in charges and items from discontinued operations, the company said its adjusted earnings came to 17 cents per share.
Sales fell to $283.4 million in the quarter against a year-earlier top-line showing of $381.8 million.
Looking ahead to the fourth quarter, the company said that sales would range between $160 million to $175 million, with a GAAP bottom-line ranging from a 6-cent loss to 2 cents in earnings. But ADC Telecom chief financial officer James Mathews also added that a change to the fiscal calendar will shorten its fourth quarter to two months from the typical three, thereby excluding a historically strong October showing.
Around the sector, American depositary shares for
Alcatel-Lucent
(ALU)
were slipping 28 cents, or 7.8%, at $3.33 in the morning.
Ciena
(CIEN) - Get Report
shares were changing hands at $12.24, or down 12 cents, while
Tellabs
(TLAB)
was adding 3 cents at $6.16.
-- Written by Sung Moss in New York
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