ADC shows strong quarter but forced to restate earnings

Infrastructure equipment maker ADC Telecommunications Inc. announced it increased earnings by 9 percent in the past quarter from the same quarter a year ago, but was also forced to restate its earnings for the fiscal year ending Oct. 31, 2006, to include a $6.7 million charge related to the sale of its APS France services business unit.
“Our first-quarter sales and earnings in 2007 were stronger than we expected,” President and CEO Robert Switz said. “There are a growing number of worldwide opportunities to sell our broad range of communications networks infrastructure solutions. Timing variables related to these opportunities, however, may cause our actual results to fluctuate around quarterly expectations. While acknowledging the near-term uncertainty caused by these quarter-to-quarter fluctuations, our primary focus remains on building ADC’s long-term value as a leading global network infrastructure company.”
Revenues for the company’s first quarter reached $297.2 million with a gross margin of 32 percent that helped infuse the company with $31 million in cash, according to Gokul Hemmady, ADC’s CFO.
ADC’s stock was up nearly 6 percent after falling slightly yesterday when the earnings were announced.