warned that its third-quarter loss per share would be wider than expected as revenue dries up in the face of an industrywide capital spending drought.
The company now expects to lose 5 cents to 7 cents a share in the quarter, slightly wider than its May forecast of a loss of 5 cents to 6 cents. Analysts polled by Thomson Financial/First Call are looking for a loss of 5 cents.
Revenue in the quarter is expected to fall to $235 million to $245 million from $547.5 million last year, missing the consensus estimate of $282.93 million.
In a press release, ADC said it was making progress in lowering its cost structure in the face of further reductions in telecommunications capital spending. "Given continued industry weakness, we are redoubling our efforts to further gain market share in our key products, continue to lower our breakeven point and further strengthen our balance sheet," the company said.
ADC plans to bring its quarterly break-even point down to revenue of $250 million from its current level of $300 million by October of 2002. The company said it will consolidate and close facilities, increase outsourcing wherever possible, divest low selling product lines, and reduce its workforce to achieve this goal, which will result in restructuring charges going forward that have yet to be determined.
Shares of ADC quickly fell about 5.4% to $2.10 in premarket trading on the news after closing at $2.22 Tuesday.