ADC Reports First Quarter 2001 Results.Business Editors & Technology Writers MINNEAPOLIS--(BUSINESS WIRE)--Feb. 21, 2001 Sales of $805 Million, Up 36%; Record First Quarter Sales in All Three Major Business Groups; International Sales, Up 68%; Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.07 ADC (1) See A/D converter. (2) (Apple Display Connector) A peripheral connector from Apple that combines digital video display, USB and power in one cable. (Nasdaq: ADCT ADCT Adaptive Discrete Cosine Transform , www.adc.com), a leading global supplier of fiber optics fiber optics, transmission of digitized messages or information by light pulses along hair-thin glass fibers. Each fiber is surrounded by a cladding having a high index of refractance so that the light is internally reflected and travels the length of the fiber , network equipment, software and integration services for broadband, multiservice networks, today announced record first quarter sales of $805 million for the quarter ended January 31, 2001, an increase of 36% over $594 million in the comparable quarter of 2000. With record first quarter sales in all three major business groups, strong growth in the first quarter of 2001 reflects 57% growth in Broadband Connectivity sales combined with 5% growth in Broadband Access See broadband and wireless broadband. and Transport sales and 44% growth in Integrated Solutions sales. International sales increased 68% to $219 million or 27% of total sales in this year's first quarter compared to 22% of total sales in the first quarter of 2000. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe remained ADC's largest sales regions in the quarter. "In a difficult economic and market environment, ADC's sales growth of 36% was one of our strongest first-quarter sales growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. ever," said William J. Cadogan, retiring chairman of ADC. "We are particularly pleased with the quarter's international sales growth at 68%, worldwide sales growth of fiber-optic connectivity systems/components at 103% and cable telephony See cable telephone. equipment at 140%, as well as the ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale in sales of the Cuda 12000 IP Access Switch. As a result of a challenging economic and market environment in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , sales to domestic customers grew at a lower-than-expected rate of 26% and ADC's first-quarter earnings were effected by lower profit margins on sales. In December and January, we implemented aggressive actions and planned future measures to improve earnings growth in 2001. The actions to date included rationalizing a product line, reducing the number of employees and cutting expenses companywide in order to regain higher rates of profitability without diminishing our long-term growth potential." "My objective as ADC's new chairman and chief executive officer is to build ADC into a high-growth, global broadband solutions company while achieving high-performance, bottom-line results to grow shareowner share·own·er n. See shareholder. Noun 1. shareowner - someone who holds shares of stock in a corporation shareholder, stockholder investor - someone who commits capital in order to gain financial returns value," said Richard R. Roscitt. "ADC acted swiftly to improve profitability at this cyclical time in the United States Time in the United States, by law, is divided into nine standard time zones covering the states and its possessions, with most of the United States observing daylight saving time for part of the year. communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. . ADC has been through these cycles before and our cost reduction actions should provide further bottom-line benefits as U.S. communications capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. increases from present levels. ADC's long-term, global growth potential for building and upgrading broadband communications networks The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. remains strong. I look forward to working with Lynn Davis Lynn Davis can refer to:
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , and ADC's committed team of approximately 21,000 employees worldwide to help make ADC a preeminent global leader in the broadband communications industry." Pro forma results in 2001 and 2000 exclude non-cash stock compensation expenses, non-recurring charges and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. from operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , and exclude the related after-tax amounts from net income and earnings per share. In the first quarter of 2001, ADC recorded charges of $81 million ($54 million after tax or $0.07 per diluted share) primarily for non-cash stock compensation expenses resulting from acquisitions, non-recurring charges related primarily to reducing the number of employees and restructuring charges related to rationalizing a product line. In the first quarter of 2000, ADC recorded only non-cash stock compensation expenses that were less than $1 million. Pro forma operating income increased 22% to $83 million in the first quarter of 2001 compared to $68 million in the prior-year first quarter. Pro forma net income in this year's first quarter was $57 million ($0.07 per diluted share) compared to $54 million ($0.07 per diluted share) in the first quarter of 2000. On a financial reporting basis, which includes the impact of all expenses and charges, net income was $2 million ($0.00 per diluted share) in the first quarter of 2001 compared to $53 million ($0.07 per diluted share) in the first quarter of 2000. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. before interest, taxes, depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) grew 43% to a first quarter record of $134 million ($0.17 per diluted share) in 2001 compared to $94 million ($0.13 per diluted share) in the first quarter of 2000. OUTLOOK ADC, like many of its peers, believes it is appropriate to remain cautious regarding its growth assumptions for both fiscal years 2001 and 2002, until economic and market conditions improve. Based on previously stated intentions of implementing additional actions to improve profitability in 2001, ADC expects to record non-recurring/restructuring charges in the second quarter in amounts that have not yet been determined. For fiscal year 2001, depending on the duration of current economic and market conditions, sales are expected to range from $3.5-$3.8 billion and related pro forma diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of are expected to range from $0.48 to $0.55. Consequently, ADC expects, at this time, to achieve the following sales and pro forma diluted earnings per share for the remaining quarters in fiscal year 2001. -- Second quarter earnings per share of approximately $0.09-$0.10 from sales of approximately $0.825-$0.870 billion. -- Third quarter earnings per share of approximately $0.13-$0.16 from sales of approximately $0.895-$0.985 billion. -- Fourth quarter earnings per share of approximately $0.19-$0.22 from sales of approximately $1.035-$1.140 billion. For fiscal year 2002, ADC currently expects annual growth rates for sales and pro forma diluted earnings per share to be in the range of 10% to 20%, subject to economic and market conditions in fiscal years 2001 and 2002. Sales by business group as a percent of total sales are expected to be in the ranges of 50-55% for Broadband Connectivity, 25-30% for Broadband Access and Transport, and 20-25% for Integrated Solutions for both fiscal years of 2001 and 2002. RECOGNITION OF ADC's PERFORMANCE AND POSITION In 2001, ADC was again named one of America's Most Admired Companies A yearly publication by Fortune Magazine, America's Most Admired Companies consists of corporations that are highly esteemed by the likes of Business Executives, Directors, and Analysts. A survey is taken of close to 3300 professionals who give their opinions on the companies. in FORTUNE's annual survey and was also included in Forbes' Platinum 400 list of the Best Big Companies in America. REVIEW OF BUSINESS GROUPS A review of ADC's performance by its three business groups - Broadband Connectivity, Broadband Access and Transport, and Integrated Solutions - follows. Broadband Connectivity ---------------------- Broadband Connectivity sales in the first quarter of 2001 increased 57% to a first quarter record of $420 million from $267 million in the comparable prior-year quarter. Strong growth in the first quarter of 2001 was a result of record first quarter sales for both fiber- and copper-connectivity systems/components. Sales of fiber-optic systems/components totaled $132 million in the quarter, up 103% from the first quarter of 2000. Pro forma operating income, before goodwill amortization, increased 48% to $150 million in the first quarter of 2001 compared to the same quarter in 2000. Sales were broad based across all types of Internet, data, video and voice service providers, and original equipment manufacturers (OEMs) around the globe. Most Internet and public network traffic flows through ADC's market-leading Broadband Connectivity products. Strong worldwide growth in Broadband Connectivity's systems and components continues as a result of: -- Rapid growth in Internet/data traffic and digital services, which is creating demand for broader bandwidth connections; -- Continued competition among communications service providers A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wireline, wireless, Internet, cable, satellite, and managed services businesses. , which is creating demand to deploy connections for new broadband services See broadband and broadband service provider. using DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary and cable modem cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. technologies in the last mile/kilometer of the network; and -- Increased globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation , which pulls ADC's products into new locations as multinational communications service providers expand into international markets. Broadband Access and Transport ------------------------------ Broadband Access and Transport sales increased 5% to a record first quarter level of $230 million compared to $219 million in the comparable prior-year quarter. Sales in the first quarter of 2001 increased from the prior-year first quarter primarily as a result of record first quarter sales in wireline systems, cable systems and broadband wireless See wireless broadband. systems offset partially by lower sales of enterprise-located access systems. Pro forma operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , before goodwill amortization, was $37 million in the first quarter of 2001 compared to a loss of $33 million in the first quarter of 2000. Sales of Homeworx(TM) products increased 140% in the first quarter of 2001 compared to the comparable prior-year quarter as shipments continued to support deployments of cable telephony services at numerous U.S. customers. Sales of the Cuda(TM) 12000 IP Access Switch continued to ramp up in the quarter and increased 78% over the fourth quarter of 2000. Two large customers recently selected the Cuda 12000 system for deployment reinforcing ADC's dedication to providing the best cable modem termination system A cable modem termination system or CMTS is equipment typically found in a cable company's headend, or at cable company hubsite and is used to provide high speed data services, such as cable internet or Voice over IP, to cable subscribers. (CMTS (Cable Modem Termination System) A computerized device that enables cable modems to send and receive packets over the Internet. It inserts IP packets from the Internet into MPEG frames and transmits them to the cable modems via an RF signal. ) platform in the market. In February 2001, the Cuda 12000 was selected by a Nortel Networks-led consortium to help build one of the world's largest voice over IP (Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. ) networks for Kabel NRW NRW Nordrhein-Westfalen (German Federal State; Capital Düsseldorf) NRW Non-Revenue Water NRW Northern Right Whale NRW Nicolson-Ross-Weir (measurement technique) NRW Nonradioactive Waste GmbH & Co. KG, Germany's largest private cable operator. Deployments are planned to start in mid-2001 and the bulk of the cable network upgrade is planned to be completed by 2003, potentially supplying more than 4.2 million homes in Germany with high-speed interactive communications services. In November 2000, Cox Communications Cox Communications is a privately owned subsidiary of Cox Enterprises providing digital cable television and telecommunications services in the United States. It is the third-largest[2] cable television provider in the United States, serving more than 6. , the fifth largest cable television company in the U.S. with over six million subscribers, approved the Cuda 12000 IP Access Switch as a DOCSIS (Data Over Cable Service Interface Specification) A cable modem standard from the CableLabs research consortium (www.cablelabs.com), which provides equipment certification for interoperability. 1.0 CMTS solution. Cox also awarded ADC with a contract to deploy the Cuda platform in its Mid America Region. The Cuda 12000 is the industry's only next-generation DOCSIS (Data-Over-Cable Service Interface Specifications) and EuroDOCSIS-compliant cable modem termination system and routing platform. The Cuda platform offers the highest DOCSIS/EuroDOCSIS performance of any system in the industry and its powerful distributed architecture supports the intensive quality of service (QoS) needs of next-generation IP services, including primary-line IP cable telephony. GVT GVT Global Virtual Time GVT German Volume Training (high-volume light-weight strength training system) GVT Ground Vibration Test GVT Government Income Trust (stock symbol) GVT Global Virtual Team , a Brazilian alternative service provider, awarded ADC a contract to supply a broadband bundled solution for connecting subscribers in the southern and central regions of Brazil Brazil is currently divided in five regions, by the Instituto Brasileiro de Geografia e Estatistica (IBGE). These divisions are composed by states with similar cultural, economical, historical and social aspects, and although through the scientific point of view information given by this . ADC's bundled solution includes the BroadAccess(TM) Multiservice Access Platform, to deliver narrowband and broadband services ranging from POTS to ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line ; the Avidia(R) system, an integrated DSL access switch/DSLAM; and the BroadWire(TM) ADSL splitter See POTS splitter. , the highest density splitter platform in the industry. ADC's Axity(TM) broadband wireless system was selected by Open Telecom to bring voice and high-speed services to businesses and consumers in Trinidad and the Caribbean. Integrated Solutions -------------------- Integrated Solutions sales grew 44% to a record first quarter level of $155 million over $108 million in the comparable 2000 quarter. Sales increased from the prior-year first quarter as a result of all-time high sales of systems integration services combined with higher sales of software systems resulting from the acquisition of Centigram cen·ti·gram n. A metric unit of mass equal to one hundredth (10-2) of a gram. centigram one-hundredth of a gram; abbreviated cg. Communications completed in July 2000. Pro forma operating loss, before goodwill amortization, was $18 million in the first quarter of 2001 compared to income of $8 million in the first quarter in 2000. Sales of system integration services reached an all-time high in the first quarter of 2001 as a result of record first quarter sales in the United States combined with ADC expanding its presence into Europe with the acquisitions of systems integration businesses in the United Kingdom and France during the autumn of 2000. Strong growth in ADC's Unity(TM) suite of systems integration services span all aspects of the telecom business and network, helping enable communications service providers to maximize both their operations support systems Operations Support Systems (also called Operational Support Systems or OSS) are computer systems used by telecommunications service providers. The term OSS most frequently describes "network systems" dealing with the telecom network itself, supporting processes such (OSS Oss (ôs), city (1994 pop. 62,141), North Brabant prov., S Netherlands; chartered 1399. It is a significant industrial center. Manufactures include meat products, chemicals, pharmaceuticals, electrical equipment, and metalware. ) and network infrastructure investments. ADC's Unity services tie together multi-vendor hardware and software environments to help communications service providers gain a competitive advantage by allowing for quicker time-to-market with new service offerings, improved customer care and lower costs of operations. In February 2001, ADC announced the acquisition of CommTech Corporation (www.comm.com), a provider of end-to-end service order management, provisioning and activation software for communications service providers. The proposed acquisition, which is subject to customary closing conditions, is expected to be accounted for as a pooling-of-interests and completed before March 1, 2001. The acquisition advances ADC's strategy to become the leading provider of end-to-end OSS solutions for broadband multiservice networks by simplifying broadband service delivery and lowering operating costs operating costs npl → gastos mpl operacionales . The integration of CommTech's FastFlow(R) service fulfillment software into ADC's existing Singularit.e(TM) OSS solution of customer management, billing and service assurance software results in the Singularit.e suite becoming one of the most comprehensive OSS solutions available. Singl.eView continued to broaden its worldwide customer base. Singl.eView(TM) is the real-time convergent billing and integrated customer management Integrated customer management (or its acronym, ICM) is a business strategy for improving support by sharing information between discrete departments. ICM brings together three business principles: alignment, agility, and customer-centricity. component of ADC's Singularit.e OSS solution. Singl.eView was selected by riodata, a German DSL operator, for its network that is available in most major German cities. ITXC (Internet Telephony Exchange Carrier Corporation, Princeton, NJ, www.itxc.com) The largest IP exchange carrier in the world. ITXC was acquired by wholesale telco provider Teleglobe Bermuda Ltd. in 2004 and then by Videsh Sanchar Nigam Ltd. , the leading provider of worldwide Internet voice services, deployed the Singl.eView platform for its global voice over the Internet service. Virgin Mobile, one of Australia's newest communications providers, implemented the Singl.eView system to support a low-cost business model and future wireless Web services (1) Loosely, any online service delivered over the Web. Such usage appears in articles from non-technical sources, but not in IT-oriented publications, because definition #2 below describes the correct use of the term. . Comm South Companies, a pioneer in prepaid telecommunications, selected the Singl.eView solution to reduce churn, improve customer relationship management and reduce time-to-market of new products and services for its U.S. residential customers. In February 2001, ADC announced alliances with Siebel Systems Siebel is a brand name of Oracle Corporation. Siebel Systems, Inc., founded by Thomas Siebel in 1993, was principally engaged in the design, development, marketing and support of CRM applications. and Siemens. ADC and Siebel Systems expect to integrate ADC's Singl.eView with Siebel eCommunications, the most complete and comprehensive family of eBusiness applications software designed specifically for the telecommunications industry. ADC expects to work with Siemens Carrier Networks to combine its switching and network technology with ADC's Singl.eView software to give startup and established communications service providers a better way to deliver voice and data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. with convergent customer care and billing. In February 2001, the service assurance portion of ADC's Singularit.e OSS suite won Communications Solutions' Product of the Year award for service assurance capabilities under the "Next-Gen Networks/Services" category. CONFERENCE CALL AND WEBCAST ADC will discuss its first quarter 2001 results and current outlook on a conference call scheduled today, February 21, at 5 p.m. Eastern time. The conference call can be accessed by domestic callers at (800) 399-7506 and by international callers at (706) 634-2489 or on the Internet at www.adc.com/investor. Starting today at 8 p.m. Eastern, the replay of the call can be accessed until February 28th by domestic callers at (800) 642-1687 and by international callers at (706) 645-9291 (conference ID number is 881514) or on the Internet at www.adc.com/investor. About ADC ADC is The Broadband Company(TM). ADC's fiber optics, network equipment, software and integration services make broadband communications a reality worldwide by enabling communications service providers to deliver high-speed Internet See broadband. , data, video and voice services to consumers and businesses. ADC (Nasdaq: ADCT) has annual sales of over $3.4 billion and employs approximately 21,000 people worldwide. ADC's stock is included in the Standard & Poor's 500 Index and the Nasdaq-100 Index. Learn more about ADC Telecommunications ADC Telecommunications (NASDAQ: ADCT) is a communications company located in Eden Prairie, Minnesota, a southwest suburb of Minneapolis. History In 1935, Ralph Allison founded ADC Telecommunications in the basement of his south Minneapolis home, inventing ADC's very , Inc. at www.adc.com. Cautionary Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 All forward looking statements contained herein, particularly those pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to ADC's expectations or future operating results, reflect management's current expectations or beliefs and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act of 1995. ADC Telecommunications cautions readers that future actual results could differ materially from those in forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. depending on the outcome of certain factors. All such forward-looking statements are subject to certain risks and uncertainties, including, but not limited to, demand for ADC's products or services, availability of materials to make products, changing market conditions and growth rates either within ADC's industry or generally within the economy, volatility in the stock market, new competition and technologies, increased costs associated with protecting intellectual property rights, the impact of customer financing activities, ADC's ability to successfully integrate the operations of acquired companies with ADC's historic operations, retention of key employees, fluctuations in ADC's operating results, pressures on the pricing of the products or services ADC offers and the mix of products and services actually sold, and other risks and uncertainties, including those identified in Exhibit 99-a to ADC's Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended October 31, 2000. ADC disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
ADC TELECOMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In Millions, Except Per Share Amounts)
For the Three Months Ended
January 31,
--------------------------------
2001 2000
------------ -------------
NET SALES $ 804.8 $ 593.9
COST OF PRODUCT SOLD 496.1 315.3
GROSS PROFIT 308.7 278.6
------------ -------------
EXPENSES:
Research and development 76.5 75.2
Selling and administration 174.8 129.8
Goodwill amortization 17.6 5.6
Non-recurring charges 33.3 -
Non-cash stock compensation 4.9 0.6
------------ -------------
Total expenses 307.1 211.2
------------ -------------
OPERATING INCOME 1.6 67.4
OTHER INCOME (EXPENSE), NET:
Interest 0.9 4.5
Other 1.8 (3.5 )
------------ -------------
INCOME BEFORE INCOME TAXES 4.3 68.4
PROVISION FOR INCOME TAXES 2.1 15.3
------------ -------------
NET INCOME $ 2.2 (a) $ 53.1 (b)
============ =============
AVERAGE COMMON SHARES OUTSTANDING
(BASIC) 772.7 699.7
============ =============
EARNINGS PER SHARE (BASIC) $ 0.00 (a) $ 0.08 (b)
============ =============
AVERAGE COMMON SHARES OUTSTANDING
(DILUTED) 803.2 730.1
============ =============
EARNINGS PER SHARE (DILUTED) $ 0.00 (a) $ 0.07 (b)
============ =============
(a) Excluding non-recurring charges ($22.7 million, net of tax),
non-cash stock compensation ($4.4 million, net of tax), and
restructuring charges ($27.2 million, net of tax) net income would
have been $56.5 million. Diluted earnings per common share would have
been $0.07.
(b) Excluding non-cash stock compensation ($0.6 million, net of
tax) net income would have been $53.7 million.
SUPPLEMENTARY SCHEDULE
ADC TELECOMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In Millions, Except Per Share Amounts)
For the Three Months Ended
January 31, 2001
------------------------------------------
As Restructuring and Proforma
Reported Other Charges (a) Results (a)
------------------------------------------
NET SALES $ 804.8 $ 804.8
COST OF PRODUCT SOLD 496.1 $ (36.3 ) 459.8
GROSS PROFIT 308.7 36.3 345.0
------------------------------------------
EXPENSES:
Research and development 76.5 76.5
Selling and administration 174.8 (6.8) 168.0
Goodwill amortization 17.6 17.6
Non-recurring charges 33.3 (33.3) -
Non-cash stock compensation 4.9 (4.9) -
------------------------------------------
Total expenses 307.1 (45.0) 262.1
------------------------------------------
OPERATING INCOME 1.6 81.3 82.9
OTHER INCOME (EXPENSE), NET:
Interest 0.9 0.9
Other 1.8 1.8
------------------------------------------
INCOME BEFORE INCOME TAXES 4.3 81.3 85.6
PROVISION FOR INCOME TAXES 2.1 27.0 29.1
------------------------------------------
NET INCOME $ 2.2 $ 54.3 $ 56.5
==========================================
AVERAGE COMMON SHARES
OUTSTANDING
(BASIC) 772.7 772.7 772.7
==========================================
EARNINGS PER SHARE (BASIC) $ 0.00 $ 0.07 $ 0.07
==========================================
AVERAGE COMMON SHARES
OUTSTANDING
(DILUTED) 803.2 803.2 803.2
==========================================
EARNINGS PER SHARE $ 0.00 $ 0.07 $ 0.07
(DILUTED)
==========================================
(a) Excluding non-recurring charges ($22.7 million, net of tax),
non-cash stock compensation ($4.4 million, net of tax), and
restructuring charges ($27.2 million, net of tax) net income would
have been $56.5 million. Diluted earnings per common share would have
been $0.07.
ADC TELECOMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In Millions)
ASSETS
January 31, October 31,
2001 2000
------------- -------------
CURRENT ASSETS:
Cash and cash equivalents $ 153.9 $ 217.3
Short-term investments 557.8 1,136.9
Accounts receivable 622.9 702.7
Inventories 536.9 486.1
Prepaid income taxes and other assets 406.9 107.9
------------- -------------
Total current assets 2,278.4 2,650.9
PROPERTY AND EQUIPMENT, net 682.6 608.6
OTHER ASSETS, principally goodwill 761.0 711.0
------------- -------------
$ 3,722.0 $ 3,970.5
============= =============
LIABILITIES AND SHAREOWNERS' INVESTMENT
CURRENT LIABILITIES:
Accounts payable $ 232.1 $ 211.3
Accrued compensation and benefits 136.5 233.4
Other accrued liabilities 221.4 202.3
Accrued income taxes 353.7 365.8
Note payable and current maturities
of long-term debt 186.5 28.5
------------- -------------
Total current liabilities 1,130.2 1,041.3
LONG-TERM DEBT, less current
maturities 15.0 16.5
------------- -------------
Total liabilities 1,145.2 1,057.8
SHAREOWNERS' INVESTMENT
(780.8 and 770.3 shares outstanding,
respectively) 2,576.8 2,912.7
------------- -------------
$ 3,722.0 $ 3,970.5
============= =============
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