ADC Sells Photonics Biz

ADC sells its Australian photonic components operations to Verrillon; closes its Minnesota and Sweden facilities, laying off 72

November 1, 2002

3 Min Read

MINNEAPOLIS -- ADC (Nasdaq:ADCT; today announced continued progress on its cost reduction and restructuring efforts aimed to lower the company's overall cost structure and improve profitability.ADC reiterated its guidance for fourth quarter results of 2002 and the earnings outlook for 2003 on October 14, 2002. The company reaffirmed that guidance today and announced the following progress on its cost reduction actions:

  • ADC has completed the sale and closure of its photonic components business unit. ADC announced its intent to withdraw from the photonic components manufacturing business in August 2002. ADC today announced the sale of its photonic components operations in Canberra, Australia to Verrillon, Inc. Terms of the sale were not disclosed. The Canberra facility designs and manufactures passive photonic components, including splitters, combiners, and wavelength division multiplexers. Approximately 55 employees work at this facility and will transfer to the new company.ADC also announced that it has ceased operations at its Vadnais Heights, Minn. and Jarfalla, Sweden facilities. The Vadnais Heights facility developed and manufactured pump lasers and micro-optic products, while the Swedish facility was used for the development and manufacture of tunable lasers. ADC intends to sell off any remaining assets and will market the facility in Vadnais Heights for lease or sale. Approximately 72 positions will be eliminated at the Vadnais Heights facility, effective immediately.The photonic components divestitures do not impact ADC's traditional fiber and copper connectivity businesses. ADC will continue to offer the industry's leading fiber and copper connectivity products.

  • ADC will cease development, marketing and sales activity related to its iAN(TM) (intelligent Access Network) Broadband Access Gateway platform. The iAN platform addressed U.S.-based telecommunications service providers' efforts to use existing copper plant as they begin the transition of voice networks to an intelligent broadband network that enables the delivery of new services and features to customers.The company will retain all intellectual property rights to the iAN platform and will continue to monitor U.S. market conditions for a possible reentry into the market at a later date. The company reiterates its commitment to the development, marketing and support of the BroadAccess platform, ADC's international version of the iAN platform."While the iAN platform offers tremendous capability to the traditional wireline communications provider, the current economic environment in the U.S. telecommunications industry has significantly delayed planned investments in next generation broadband access technologies," said Rick Roscitt, chairman and CEO of ADC. "We continue to believe that the industry will move to this type of technology in the future, and ADC will monitor our presence in this sector and respond when conditions are more favorable to these types of investments."In a separate release:NORTH GRAFTON, Mass. -- Verrillon, Inc. today announced that is has acquired ADC’s (NASDAQ: ADCT: passive photonic components business unit in Canberra, Australia in association with the existing management team. Terms of the deal were not disclosed. “The combination of the two businesses is unique,” said Bill Beck, Verrillon’s President and CEO. “No other major passive component manufacturer has an integrated specialty optical fiber capability.”The name of the Canberra, Australia business unit will revert to AOFR, the company’s name prior to being acquired by ADC in 1995. AOFR will operate as a subsidiary of Verrillon, Inc.Under the deal, ADC transferred to Verrillon its development, production and testing capabilities for tap couplers, splitters, combiners, wavelength division multiplexers, and fiber Bragg gratings. In addition, ADC and AOFR have entered into a supply agreement. ADC Telecommunications Inc.Verrillon Inc.

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