Yikes

ADC dials down outlook, plans more job cuts
Monday, February 2, 2009, 10:31am CST
Minneapolis
ADC Telecommunications Inc. on Monday lowered its first-quarter guidance and said it’s planning more layoffs in an effort to cut costs. The company's stock tumbled after the announcement.
The Eden Prairie-based company cut 350 jobs worldwide in October, including between 180 and 190 positions in Minnesota. ADC will announce how many additional jobs will be cut at a later date, a company spokesman said.
ADC, which makes equipment for the telecom industry, said it now expects revenue of between $240 million and $255 million in the first quarter, down from earlier projections of between $255 and $290 million. The slowing economy and a drop in customer spending prompted the company to lower its sales estimates, the firm said in a statement.
ADC now expects to record a loss of between 17 and 23 cents per share in the first quarter; previously, it projected a loss of between 5 and 17 cents per share.
Analysts polled by Thomson Reuters expect the company to report a loss of 2 cents per share and revenue of $274.9 million. Those estimates don’t include one-time charges; ADC’s projections include a non-cash amortization expense of 9 cents per share.
The company also said it has ended its $200 million line of credit, which it noted in a statement “has become increasingly costly to maintain.” It expects to end the quarter with more than $500 million in cash.
ADC will announce its first-quarter earnings on March 3. The company’s stock price was down nearly 30 percent in afternoon trading, slipping to $3.56 per share.