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FINAL RESULTS FOR FISCAL 1991 ANNOUNCED BY ADC TELECOMMUNICATIONS

 FINAL RESULTS FOR FISCAL 1991 ANNOUNCED BY ADC TELECOMMUNICATIONS
 MINNEAPOLIS, Dec. 16 /PRNewswire/ -- ADC Telecommunications, Inc. (NASDAQ: ADCT) announced final results today for its fiscal year ended Oct. 31, 1991. The results for the quarter and year ended Oct. 31, 1991, compared to the quarter and year ended Oct. 31, 1990, are as follows (dollars in thousands, except EPS):
 Quarters Ended Years Ended Percent Increase
 10/31/91 10/31/90 10/31/91 10/31/90 Qtr. Year
 Orders $72,682 $75,928 $284,993 $265,272 (4.3) 7.4
 Net sales 74,852 71,750 293,839 259,802 4.3 13.1
 Net income $4,579 $6,469 $22,025 $22,903 (29.2) (3.8)
 EPS $.34 $.49 $1.65 $1.73 (30.6) (4.6)
 Orders and net sales for the quarter ended Oct. 31, 1991, are down from the same 1990 quarter in all but the company's internetworking markets, primarily reflecting recessionary influences in the telecommunications industry. Sales of internetworking products by Fibermux Corporation, which was acquired on May 6, 1991, represents the major portion of the 13.1 percent increase in consolidated net sales and 7.4 percent increase in consolidated orders for the year ended Oct. 31, 1991. Due to the acquisition date, net sales and orders of internetworking products into the private market are not included in 1990 results.
 "We expect that net sales and orders will continue to be impacted by the effects of recession in the public network market until our customers in that market recover from this business cycle," stated William J. Cadogan, president and chief executive officer.
 "The earnings decrease for the quarter and year resulted from operating expense levels established at higher planned sales levels and the goodwill and interest costs associated with the Fibermux acquisition. Although we intend to continue significant investments in engineering and development programs that will maintain and strengthen our product and market positions, we will pursue expenditure reductions in other areas of the company," added Cadogen.
 ADC Telecommunications, Inc. designs, manufactures and markets a wide variety of cable management, transmission and networking products used by telephone companies, broadcast networks and large private telecommunications networks.
 Net sales for the quarters and years ended Oct. 31, 1991, and 1990, classified by product group, detailed statements of income for the quarters and years ended Oct. 31, 1991, and 1990, and balance sheets as of Oct. 31, 1991, and 1990, follow.
 NET SALES BY PRODUCT GROUP
 (Dollars in thousands)
 Quarters Ended
 10/31/91 10/31/90
 Product Group Net Sales Percent Net Sales Percent
 Cable Management (1) $40,978 54.8 $49,388 68.8
 Transmission (2) 13,116 17.5 14,512 20.2
 Networking (3) 20,758 27.7 7,850 11.0
 Total $74,852 100.0 $71,750 100.0
 Years Ended
 10/31/91 10/31/90
 Product Group Net Sales Percent Net Sales Percent
 Cable Management (1) $188,270 64.1 $181,612 69.9
 Transmission (2) 51,355 17.5 44,915 17.3
 Networking (3) 54,214 18.4 33,275 12.8
 Total $293,839 100.0 $259,802 100.0
 (1) Net sales of cable management products reflect the recession in the public network market that noticeably impacted the company's business in the third and fourth quarters of 1991.
 (2) The 1991 annual increase in transmission product net sales is primarily attributable to newer products and the inclusion of ALS product revenues for the entire year, offset by the anticipated, continuing decline in net sales of the coaxial multiplexing device sold to a large computer manufacturer. Net sales of ALS products were included in the company's 1990 results for only the four month period following the ALS acquisition in July 1990. The fourth quarter 1991 decrease in net sales of transmission products also reflects the second half impact of the recessionary trends in the public network market.
 (3) The increases in net sales of networking products primarily reflect the Fibermux acquisition. Fibermux product revenues were included in net sales for the networking product group for only six months in 1991.
 Net sales of fiber optic products represented 20.9 percent and 10.9 percent of total net sales in 1991 and 1990, respectively.
 ADC TELECOMMUNICATIONS AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME -- UNAUDITED
 (In thousands, except per share statistics)
 Quarters Ended Years Ended
 10/31/91 10/31/90 10/31/91 10/31/90
 Net sales $74,852 $71,750 $293,839 $259,802
 Cost of products sold 37,577 36,865 148,614 133,802
 Gross profit 37,275 34,885 145,225 126,000
 Gross profit percentage 49.8 48.6 49.4 48.5
 Expenses:
 Selling $15,244 $11,597 $53,577 $45,297
 Development and
 product engineering 8,549 7,782 32,315 25,462
 General and
 administrative 4,838 4,457 20,792 17,496
 Total expenses 28,631 23,836 106,684 88,255
 Operating income 8,644 11,049 38,541 37,745
 Other income
 (expense), net:
 Interest (419) 309 (108) 1,255
 Other (780) (576) (2,028) (828)
 Income before income
 taxes 7,445 10,782 36,405 38,172
 Provision for income
 taxes 2,866 4,313 14,380 15,269
 Net income $4,579 $6,469 $22,025 $22,903
 Average common shares
 outstanding 13,428 13,289 13,369 13,265
 Earnings per share $.34 $.49 $1.65 $1.73
 Orders $72,682 $75,928 $284,993 $265,272
 CONSOLIDATED BALANCE SHEETS -- OCT. 31
 (In thousands)
 ASSETS 1991 1990
 Current assets:
 Cash and cash equivalents $30,109 $25,978
 Accounts receivable, net of reserves
 of $1,146 and $757 41,373 37,338
 Inventories, net of reserves
 of $3,171 and $2,489 40,427 33,845
 Prepaid income taxes and other 7,621 5,364
 Total current assets 119,530 102,525
 Property and equipment:
 Land and buildings 24,702 20,259
 Machinery and equipment 78,716 63,596
 Furniture and fixtures 13,361 11,110
 Accumulated depreciation and
 amortization (58,971) (49,581)
 Total property and equipment 57,808 45,384
 Other assets, principally goodwill 69,831 33,756
 Total $247,169 $181,665
 LIABILITIES AND STOCKHOLDERS' INVESTMENT
 Current liabilities:
 Current maturities of long-term debt $1,412 $1,257
 Accounts payable 10,167 10,140
 Accrued compensation and benefits 17,568 18,624
 Accrued income taxes 1,084 1,302
 Other accrued liabilities 10,294 6,012
 Total current liabilities 40,525 37,335
 Deferred income taxes 4,636 5,476
 Long-term debt, less current
 maturities above 43,634 4,841
 Total liabilities 88,795 47,652
 Stockholders' investment:
 Common stock (13,429 and 13,289 shares
 issued and outstanding) 2,686 2,658
 Paid-in capital 22,285 20,093
 Retained earnings 133,743 111,718
 Deferred compensation (340) (456)
 Total stockholders' investment 158,374 134,013
 -0- 12/16/91
 /CONTACT: Aimee Gallogly of ADC Telecommunications, 612-946-3338/
 (ADCT) CO: ADC Telecommunications ST: Minnesota IN: TLS SU: ERN


KH -- MN015 -- 2659 12/16/91 16:35 EST
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