The Minneapolis-based networking gearmaker posted an adjusted profit of $37 million, or 28 cents a share, for the fiscal fourth quarter ended Oct. 31. Those numbers compare with pro forma earnings of 18 cents a share a year ago. Analysts were looking for an adjusted profit of 18 cents, according to Thomson First Call.
Total sales for the quarter were $307.4 million, up from $294 million in the same period a year ago. The analyst consensus called for sales of $303 million.
"In the face of challenging market conditions, we achieved year-over-year sales growth of 5% in the fourth fiscal quarter of 2006," CEO Bob Switz said in a press release.
But looking ahead, the company said it sees slumping demand for products like access gear related to the fiber expansion by the big phone companies such as
. The company says it is uncertain how long its customers will take to work down their inventory levels.
The company also said some customers -- presumably AT&T -- have deferred spending as they await merger approval. AT&T is planning to merge with
As a result, ADC says it "expects sales in our first fiscal quarter of 2007 to be down from the fourth quarter of 2006 by around 15% due to the timing issues noted above."
So for the 2007 fiscal year, ADC estimates that adjusted full-year profit should be around 58 cents a share and that total sales will be somewhere in a range of $1.26 billion to $1.29 billion. That is well below analysts' estimates, which call for pro forma earnings of $1.01 on sales of $1.34 billion.
ADC shares fell 58 cents to $13.53 in after-hours trading Tuesday.