MINNEAPOLIS-ADC Telecommunications Inc. released its fiscal third-quarter results Tuesday, reporting net income of $23.9 million, or 20 cents per, a considerable increase from last year’s third-quarter net loss of $14.3 million, or 12 cents per share.
However, the company’s outlook fell short of Wall Street expectations, causing its stock to drop 6 percent overnight from its Tuesday closing price of $22.69 per share on the Nasdaq to an opening price of $21.34 this morning.
“Our 40-percent year-over-year sales growth in the July 2005 fiscal quarter compared to an estimate of approximately 15 percent growth in aggregate capital spending at the largest U.S. telco and wireless carriers for the June 2005 calendar quarter,” said Robert Switz, president and chief executive of ADC.
“Strong contributions from our global connectivity solutions (excluding OmniReach sales), as well as from OmmiReach Fiber-to-X products, Digivance wireless systems and professional services drove this significant growth. We will continue our focus on sales growth and lowering our cost of operations as we execute on our plans for long-term profitable growth.”
The company’s revenue for the fiscal third quarter is $314.6 million, a 40-percent increase from last year’s fiscal third-quarter revenues of $224.9 million.
ADC said its 2005 fiscal fourth-quarter estimates for sales and earnings are $315 million to $325 million from continuing operations of 24 cents to 28 cents per share, which falls short of analyst sales forecasts of $322.1 million and 30 cents per share earnings.
