ADC Telecommunications Inc. reported a $442.8 million first-quarter loss Tuesday that included write-offs of $435 million for assets, auction-rate securities and restructuring. Revenue dropped 23 percent to $254 million.
The Eden Prairie firm also said it had eliminated 1,000 jobs in a restructuring prompted by declining revenue, including 600 jobs in the first quarter ended Jan. 30 and 400 in the second quarter. The company now has about 9,400 employees worldwide.
Revenue declined because of reduced capital spending by ADC's big telecommunications customers, including AT&T and Verizon, who together account for more than 35 percent of ADC's revenue.
The company had signaled last month that its results would be less than expected and that there would be layoffs. The actual results were slightly better than analysts' revised estimates. ADC's loss before expenses was 7 cents a share vs. an average analyst estimate of a 10 cent loss. ADC's revenue was slightly better than the average analyst expectation of $252.2 million.
The financial results were released after the market closed. ADC stock closed at $2.50 a share, down 9 cents, or about 3.5 percent.
STEVE ALEXANDER
