Monday, July 21, 2008

ADC Trims Financial Outlook for Fiscal Year 2008

ADC updated its financial guidance, saying it now expects sales from continuing operations for fiscal 2008 to be in the range of $1.500-$1.520 billion. Previous annual guidance provided on June 4, 2008 was that ADC's fiscal 2008 sales would be in the range of $1.520-$1.540 billion. ADC now expects to have year-over-year sales growth for fiscal year 2008 of 13%-15%.

The company said that compared to previous fiscal 2008 sales guidance, the updated financial outlook primarily reflects lower sales of copper and fiber connectivity products in the United States resulting mainly from customers' recent budget reviews and ordering patterns, as well as the resulting effects on original equipment manufacturers' demand for ADC products.

"We remain firmly committed to managing our business strategically for the long term, but the inherent short-lead time nature of our business sometimes results in quarter-to-quarter market-related movements, up or down, in our sales expectations," said Robert E. Switz, president and CEO of ADC. "Current industry conditions are driving a change in our financial outlook for this fiscal year, but we see no change in our customers' long-term commitment to investing in the network infrastructure required to deliver broadband services to business, residential and mobile subscribers."