ADC Telecom Goes To Confession (ADCT)

October 22, 2008 by Douglas A. McIntyre

Adc_logoADC Telecom (NASDAQ: ADCT) is trimming its fiscal revenue guidance and throwing out almost every other bit of key restructuring and financial data to offer some stability to the situation.  The telecom infrastructure equipment provider now sees sales from continuing operations for its 2008 fiscal year to be $1.47 to $1.495 billion rather than guidance offered on September 4, 2008 in a range of $1.5 to $1.52 billion.  the company said it is also now planning for lower revenues in 2009. 

As far as earnings, it sees a GAAP loss in a range of -$0.24 EPS to-$0.04 EPS after restructuring charges of $0.11 to $0.21 off of the EPStargets.

The company had $694 million of total cash and cash equivalents as ofSept. 26, 2008 and plans to be cash flow positive in both 2008 and 2009.

ADC plans to divest the its EMEA Professional Services business and todiscontinue certain outdoor wireless product families in its NetworkSolutions business unit.  It also sees job cuts in North America aspart of its restructuring.   

In September 2008, ADC completed the first $50 million of sharerepurchases at an average price of $9.81 per share as part of thepreviously announced $150 million program.  The company plans torepurchase the remaining $100 million under a 10b5-1 trading plan.

Shares closed down over 7% at $5.19 today in regular session tradingand shares are down another 3.5% at $5.01 in after-hours trading.  The52-week trading range is $4.81 to $19.28.

Jon C. Ogg
October 22, 2008

ALERT: Today Could Be Your Best Shot At Early Retirement (Sponsored)

If you want to retire before 65, pay attention. Study after study has shown that the longer you stay invested, the better your chances at an early retirement.

Every day that goes by without saving and investing for tomorrow means more to earn and save later. Don’t waste any more time and get started with Robinhood today. The app makes it easy to buy and sell stocks, mutual funds, trade options, and even cryptocurrencies.

Sign up today — click here to start your journey.