Citing higher demand from communications companies, ADC Telecommunications Inc. reported second-quarter profit and sales that topped analysts' estimates.
Excluding costs such as stock-based compensation, earnings for the Eden Prairie maker of telephone networking equipment were 39 cents a share for the quarter ended May 2, ADC said Wednesday. That beat the 30-cent average of estimates compiled by Bloomberg.
ADC also raised its annual sales forecast. Demand for the company's fiber-optic products is rising as customers such as Verizon Communications Inc. build networks to offer television and faster Internet service. Verizon, the second-largest U.S. phone company after AT&T, plans to expand its FiOS TV service in cities such as Boston and New York.
The company's sales of $403.4 million also topped the $383.6 million average estimate of analysts. Net income dropped to $16.3 million, or 14 cents a share, from $92.1 million, or 72 cents a share, a year earlier, when the company sold stock in BigBand Networks Inc.
ADC wrote down the value of its auction-rate securities by $18 million in the quarter, near the upper range of its previous estimate.
Shares rose 40 cents Wednesday, or 2.6 percent, to $16.04 in extended trading after closing at $15.64. The stock has shown little change this year.
The company now predicts revenue of $1.52 billion to $1.54 billion, up from an earlier estimate of as much as $1.51 billion. Analysts project sales of $1.5 billion.
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