Plans to eliminate an additional 3,000 to 4,000 employees

March 28, 2001

1 Min Read

MINNEAPOLIS -- ADC (Nasdaq:ADCT - news, - news), a leading global supplier of fiber optics, network equipment, software and integration services for broadband, multiservice networks, today announced that sales and pro forma earnings per share are expected to be lower than its guidance announced on February 21, 2001 for the second fiscal quarter ending April 30, 2001 and fiscal year 2001. Pro forma earnings exclude non-cash stock compensation expenses, non-recurring charges and restructuring charges, however, do include certain one-time operating charges. ADC also announced plans to eliminate an additional 3,000 to 4,000 employees worldwide from its existing workforce by the end of its fiscal year ending October 31, 2001.

As a result of an extremely challenging economic environment and a further slowdown in capital spending by communications service providers in 2001, ADC now expects sales in the second quarter of 2001 to be approximately $650-700 million (compared to $771 million in the second quarter of 2000) and pro forma diluted loss per share to be $0.10 to $0.15 (compared to pro forma diluted earnings per share of $0.10 in the second quarter of 2000). ADC expects lower operating profit margins in the second quarter primarily as a result of lower sales of broadband connectivity products and increased operating reserves than expected in its February 2001 guidance. ADC plans to increase operating reserves based upon its thorough review of all businesses in recent weeks in response to the more challenging economic environment and the rapid downturn in telecommunications capital spending.

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