OVERLAND PARK, Ill.—Buffeted by the reduced equipment spending of telecommunications carriers, Andrew Corp., Overland Park, Ill., reported second-quarter net income of $3.3 million on sales of $199.7 million, declines of 60 percent and 16 percent, respectively, from the same period a year ago. Net income per share also declined by 60 percent, to 4 cents.
Except for the Asia-Pacific region, the sales decrease for the second quarter, which ended March 31, affected all major geographic areas, the company said in releasing its results after the close of trading April 18.
A significant drop in sales of equipment housing offset sales growth in power amplifiers, base station and broadcast antennas and related products. Wireless accessory sales also rose.
“Despite reduced worldwide telecommunication equipment spending and global economic uncertainty, we continue to make progress in improving the company’s skill set and market position,” said Floyd English, chairman and chief executive officer.
“As our announced acquisition of Celiant Corp., a supplier of power amplifiers, demonstrates, we are moving forward with a number of initiatives aimed at continuing to increase our addressed markets, strengthen our technology portfolio and accelerate our product diversification strategy.”
In February, Andrew announced a definitive agreement to acquire Celiant, based in Warren, N.J., for $203 million and 16.3 million shares of Andrew common stock. When the transaction closes, Andrew said it believes it will become the largest independent supplier of power amplifiers.
