ORLAND PARK, Ill.-Andrew Corp. said it expects results for the second quarter ended March
31 will fall short of analysts’ expectations because of lower-than-anticipated revenue in January and February.
The
company said it will reduce its cost structure in various locations, which will include a reduction of about 10 percent to
12 percent of its 4,000 employees. The goal will be to reduce annual operating costs, including cost of sales, selling,
general and administrative expenses by at least $17 million.
March quarter sales are expected to be between $160
million and $170 million compared with sales of $197 million in March 1998.
“During the first two months of
the March quarter, revenue was slower than anticipated, mainly in the United States where customer spending in the
wireless infrastructure market continues to slow,” said Floyd English, chairman, president and chief executive
officer of Andrew. “We expect sales in the third and fourth quarter to be stronger than the first half due to normal
business seasonality and to the higher capital expenditure spending plans announced but not yet implemented by some
of our customers.”
