WESTCHESTER, Ill.—Andrew Corp.’s fourth-quarter results revealed the financial burden the company absorbed in part due to its now-abandoned merger proposed earlier this year by rival ADC Telecommunications Inc.
Andrew reported a quarterly loss of $59.7 million, a disappointing turnaround from the year-ago profit of $7.5 million.
Wireless infrastructure contributed $564 million to the company’s total quarterly revenue of $599 million. Sales were up 16 percent compared with last year’s fourth-quarter revenue of $518.4 million.
“Our fourth quarter financial results reflect strong execution and positive operational improvement despite the uncertainty surrounding the ADC merger agreement and its termination,” stated Ralph Faison, president and chief executive officer of Andrew.
In August, Andrew agreed to pay ADC $10 million to get out of its merger agreement. Among other costs, Andrew said it also doled out $4.7 million related to “intangible amortization” along with $5 million related to restructuring activities. Andrew said it recorded a non-cash charge in the fourth quarter “to provide a full valuation allowance of $83.4 million” on its deferred tax assets.
Wall Street trading pushed Andrew’s stock down 20 cents to $9.59 per share.
