Citing higher demand from communications companies, ADC Telecommunications Inc. reported second-quarter profit and sales that topped analysts' estimates.
ADC revenue, earnings beat estimates
The Eden Prairie maker of communications gear saw sales of more than $400 million.
June 5, 2008 at 4:56AM
Excluding costs such as stock-based compensation, earnings for the Eden Prairie maker of telephone networking equipment were 39 cents a share for the quarter ended May 2, ADC said Wednesday. That beat the 30-cent average of estimates compiled by Bloomberg.
ADC also raised its annual sales forecast. Demand for the company's fiber-optic products is rising as customers such as Verizon Communications Inc. build networks to offer television and faster Internet service. Verizon, the second-largest U.S. phone company after AT&T, plans to expand its FiOS TV service in cities such as Boston and New York.
The company's sales of $403.4 million also topped the $383.6 million average estimate of analysts. Net income dropped to $16.3 million, or 14 cents a share, from $92.1 million, or 72 cents a share, a year earlier, when the company sold stock in BigBand Networks Inc.
ADC wrote down the value of its auction-rate securities by $18 million in the quarter, near the upper range of its previous estimate.
Shares rose 40 cents Wednesday, or 2.6 percent, to $16.04 in extended trading after closing at $15.64. The stock has shown little change this year.
The company now predicts revenue of $1.52 billion to $1.54 billion, up from an earlier estimate of as much as $1.51 billion. Analysts project sales of $1.5 billion.
BLOOMBERG NEWS
2nd quarter FY2008, 5/2
2008 2007 % chg. Revenue $403.4 $349.3 +15.5 Cont. ops. 16.5 93.4 -82.3 Disc. ops -0.2 -1.3 -- Extra* -- 0.2 -- Income 16.3 92.1 -82.3 Earn/share 0.14 0.72 -80.6 6 months
Revenue $741.9 $646.5 +14.8 Cont. ops. -11.5 103.1 -- Disc. ops 0.5 -7.4 -- Extra* -- -4.9 -- Income -11.0 95.7 -- Earn/share -0.09 0.78 -- Figures in millions except for earnings per share.
* Extra is gain/loss on sale of discontinued operations.
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