ADC Telecommunications fiscal 2nd-quarter loss narrows from year-ago quarter hurt by charge

ADC Telecommunications fiscal 2Q loss narrows

MINNEAPOLIS — ADC Telecommunications Inc. said Wednesday that its loss narrowed in its fiscal second quarter, compared with a year ago when the networking equipment maker’s results were weighed down by charges.

ADC posted a net loss of $12.5 million, or 13 cents per share, for its quarter ended April 2. Excluding one-time items, the company said net income from continuing operations was 10 cents per share.

Analysts surveyed by Thomson Financial forecast net income of 6 cents per share. Analyst estimates typically exclude one-time items.

In the year-ago quarter, ADC posted a net loss of $443.1 million, or $4.59 per share, largely on a $408 million impairment charge.

Revenue rose 7 percent to $274 million from $256.6 million. Analysts predicted revenue of $273 million.

ADC said customers have increased planning and proposals, indicating upcoming spending to upgrade networks.

For the fiscal third quarter that ends July 2, ADC said it expects revenue of $290 million to $310 million. Analysts forecast revenue of $293.4 million.

ADC also predicted quarterly income of 10 cents to 20 cents per share, including expected amortization expense of 5 cents per share but excluding other items the company can’t yet estimate.

Analysts project income of 15 cents per share.

Shares of ADC rose 46 cents, or 6 percent, to $8.19 in extended trading. The stock earlier slid 30 cents, or 3.7 percent, to close at $7.73. The stock has ranged from $5.18 to $9.78 over the past year.