MINNEAPOLIS-ADC has released updated third-quarter (ended July 31) earnings expectations and has laid out future plans to reduce operating expenses.
The company said it now expects a loss of 5 cents per share in the third quarter, the low end of its previously stated guidance. In addition, ADC said its third-quarter revenue will not meet previously stated guidance of $600 million.
ADC also said it will begin reducing expenses by $50 million per quarter beginning in the fiscal fourth quarter, which ends October 31. Cost cutting measures will include 2,500 layoffs, adding to the 7,000 positions ADC has cut since November 2000.
“In looking forward, we are ahead of plan in our overall cost reductions to date and have made enormous progress in our goal to return to profitability and positive cash flow,” explained an optimistic Rick Roscitt, chairman and chief executive officer. “However, given the slow industrywide recovery of revenue growth, we do believe that it is prudent to remove additional costs from our operations in the fourth quarter and beyond.”
