ADC Closes Q3

Net Sales from continuing operations were $315 million, up 40% from 3Q04

August 30, 2005

2 Min Read


-- Net Sales from Continuing Operations Were $315 Million, Up 40% from 3Q04

-- KRONE Results Are Included in All Quarters Starting with the Third Quarter of Fiscal 2004

-- Broad-based Year-Over-Year Sales Growth Driven by Sales of Global Connectivity and OmniReach(TM) Fiber-to-the-X Solutions, as well as Digivance(R) Wireless Systems and Professional Services

-- International Sales Were 43% of Total Sales; United States Sales Grew 45% from 3Q04

-- Operating Expenses (Excluding Restructuring and Impairment Charges) at 26.0% of Sales Reduced from 36.1% in 3Q04

-- Operating Margin (Excluding Restructuring and Impairment Charges) Improves to 10.8% from 2.0% in 3Q04

-- $0.28 GAAP Diluted Earnings Per Share from 3Q05 Continuing Operations (Includes $0.01 of Restructuring and Impairment Charges), up from $0.03 in 3Q04

-- Total Cash and Securities (Short- and Long-term) Were $609 Million at Quarter End

ADC (NASDAQ:ADCT)( today announced results for its third fiscal quarter ended July 29, 2005 prepared in accordance with generally accepted accounting principles (GAAP). The results are summarized below for ADC and its operating segments, Broadband Infrastructure and Access, and Professional Services, on a continuing operations basis.

"Similar to our second fiscal quarter results, we continued in the third fiscal quarter to deliver among the strongest year-over-year growth in sales and earnings per share (EPS) from continuing operations compared to most communications equipment suppliers for the comparable period. EPS from continuing operations increased to $0.28 from $0.03 last year. Our strong year-over-year performance in our third quarter was a result of an increase in sales of our broad family of communications infrastructure products and services, as well as improved operating margins (excluding restructuring and impairment charges) to 10.8% of sales compared to 2.0% in the third quarter of 2004," said Robert E. Switz, president and CEO of ADC.

"Our 40% year-over-year sales growth in the July 2005 fiscal quarter compared to an estimate of approximately 15% growth in aggregate capital spending at the largest U.S. telco and wireless carriers for the June 2005 calendar quarter," added Switz. "Strong contributions from our global connectivity solutions (excluding OmniReach sales), as well as from OmniReach Fiber-to-the-X (FTTX) products, Digivance wireless systems and professional services drove this significant growth. We will continue our focus on sales growth and lowering our cost of operations as we execute on our plans for long-term profitable growth."

ADC Telecommunications Inc.

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