ADC meets expectations, lowers guidance

ADC reported a 16% sequential decline in sales for its fiscal third quarter while lowering guidance for its fourth quarter. Leading the decline was the company’s broadband infrastructure and access unit, which saw sales fall 47% to $405 million.

The company posted a pro forma operating loss of $51 million, or 5 cents per share, beating consensus estimates by 1 cent per share on sales of $548 million. Including all charges and one-time items, the company posted a net loss of $58 million, or 7 cents per share.

For the fourth quarter, the company now predicts revenues of $400 million to $450 million, excluding $50 million in revenues from the divestiture of non-essential businesses. Pro forma loss per share is expected to be between 3 cents and 5 cents, worse than the 2-cent loss Wall Street had been predicting. After the report, ADC was downgraded by at least three Wall Street Firms: Thomas Weisel Partners, US Bancorp Piper Jaffray and J.P. Morgan.

--Toby Weber, staff writer