ADC Telecommunications 2Q Profit Drops on Higher Costs
ADC Telecommunications said late Wednesday its fiscal second-quarter profit declined, citing a surge in expenses but offered a rosier outlook for the year.
The Minneapolis-based broadband-communications equipment maker said it had a fiscal second-quarter profit of $16.5 million, or 14 cents a share, compared with a year-ago profit of $93.4 million, or 73 cents a share. E
Excluding multiple charges, the company said it had earnings of 39 cents a share, topping the Thomson Reuters average estimate of 30 cents a share.
The costs include the amortization of purchased intangibles, stock options costs, restructuring charges along with 12 cents per share in non-operating impairment of securities available for sale, the company said.
Revenue rose 16 percent from a year ago to $403.4 million, up 19 percent from last year and was also ahead of the consensus forecast of $384.7 million.
The momentum and success we achieved in 2007 has not slowed in the first half of 2008, said Chief Executive Robert Switz.
Our results demonstrate the successful execution of our strategy to position ADC in the high growth segments of fiber-based and wireless communications networks where our customers are investing in the infrastructure that delivers broadband services to business, residential and mobile subscribers.
After rising 0.2 percent during Wednesday's session to close at $15.64, the stock was up another 2.1 percent in after-hours trading.
© Copyright IBTimes 2024. All rights reserved.