ADC Updates Continued Progress on its Cost Reduction Measures.Business Editors & Technology Writers MINNEAPOLIS--(BUSINESS WIRE)--Nov. 1, 2002 Company Reaffirms Fourth Quarter 2002 Financial Guidance 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) today announced continued progress on its cost reduction and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). efforts aimed to lower the company's overall cost structure and improve profitability. ADC reiterated its guidance for fourth quarter results of 2002 and the earnings outlook for 2003 on October 14, 2002. The company reaffirmed that guidance today and announced the following progress on its cost reduction actions:
-- ADC has completed the sale and closure of its photonic
components business unit. ADC announced its intent to withdraw
from the photonic components manufacturing business in August
2002. ADC today announced the sale of its photonic components
operations in Canberra, Australia to Verrillon, Inc. Terms of
the sale were not disclosed. The Canberra facility designs and
manufactures passive photonic components, including splitters,
combiners, and wavelength division multiplexers. Approximately
55 employees work at this facility and will transfer to the
new company.
ADC also announced that it has ceased operations at its
Vadnais Heights, Minn. and Jarfalla, Sweden facilities. The
Vadnais Heights facility developed and manufactured pump
lasers and micro-optic products, while the Swedish facility
was used for the development and manufacture of tunable
lasers. ADC intends to sell off any remaining assets and will
market the facility in Vadnais Heights for lease or sale.
Approximately 72 positions will be eliminated at the Vadnais
Heights facility, effective immediately.
The photonic components divestitures do not impact ADC's
traditional fiber and copper connectivity businesses. ADC will
continue to offer the industry's leading fiber and copper
connectivity products.
-- ADC will cease development, marketing and sales activity
related to its iAN(TM) (intelligent Access Network) Broadband
Access Gateway platform. The iAN platform addressed U.S.-based
telecommunications service providers' efforts to use existing
copper plant as they begin the transition of voice networks to
an intelligent broadband network that enables the delivery of
new services and features to customers.
The company will retain all intellectual property rights to
the iAN platform and will continue to monitor U.S. market
conditions for a possible reentry into the market at a later
date. The company reiterates its commitment to the
development, marketing and support of the BroadAccess
platform, ADC's international version of the iAN platform.
"While the iAN platform offers tremendous capability to the
traditional wireline communications provider, the current
economic environment in the U.S. telecommunications industry
has significantly delayed planned investments in next
generation broadband access technologies," said Rick Roscitt,
chairman and CEO of ADC. "We continue to believe that the
industry will move to this type of technology in the future,
and ADC will monitor our presence in this sector and respond
when conditions are more favorable to these types of
investments."
The company's decision on iAN does not effect ADC's continued
presence and focus on the wireline communications service
provider market. ADC will continue to deliver a comprehensive
line of last mile DSL and connectivity solutions, including
industry-leading T1 and E1 transport systems, high-performance
customer premise equipment, small subscriber loop access
equipment, Stargazer element management system, broadband
connectivity products, DSL splitters, OSS software, and
integration services.
Also, ADC announced in September and reiterated today its renewed
commitment and further investments in the competitive HDSLx
environment as service providers continue to deliver T1 services
to small- and medium-sized businesses throughout North America.
The company maintains a more than 40 percent market share in the
HDSLx market.
As a result of the actions mentioned above, ADC will take a non-recurring, restructuring charge 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. in its fiscal fourth quarter ending October 31, 2002, the amount of which has not yet been determined. ADC will release its earnings results for the fiscal fourth quarter on Tuesday, December 3, after market close. The company's earnings release will be followed by a conference call at 5:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. on the same date. The conference call will be available to domestic callers by calling 800.399.7506 and to international callers by calling 706.634.2489. More information about ADC's earnings statement and conference call is available at the Calendar of Events at www.adc.com/investor. About ADC ADC is The Broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). Company(TM). ADC offers high-quality, value-added solutions of network equipment, software and systems integration services that enable 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. to deliver high-speed Internet See broadband. , data, video and voice services to consumers and businesses worldwide. ADC (Nasdaq:ADCT) has sales into nearly 100 countries and 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, significant difficulties in forecasting sales and market trends; uncertainties regarding the level of 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. by telecommunications service providers A Telecommunications Service Provider or TSP is a type of Communications Service Provider that has traditionally provided telephone and similar services. This category includes ILECs, CLECs, and mobile wireless companies. , as the majority of ADC's revenues are derived from these companies; the overall demand for ADC's products or services; the demand for particular products or services within the overall mix of products sold, as our products and services have varying profit margins; changing market conditions and 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. either within ADC's industry or generally within the economy; ADC's ability to complete our restructuring initiative and streamline our operations successfully; ADC's ability to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose non-strategic product lines and excess assets on a timely and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. basis; new competition and technologies; increased costs associated with protecting intellectual property rights; the impact of customer financing activities; the retention of key employees; pressures on the pricing of the products or services ADC offers; the availability of materials to make products; variations in the value of assets held or used by ADC in the operation of its business 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, 2001. 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. |
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