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UPDATE 1-ADC Q4 results beat Street; sees weak Q1 revenue

Thu Nov 19, 2009 6:04pm EST

Stocks

   

* Sees Q1 rev $250-$275 mln vs est $274 mln

Stocks  |  Media  |  Technology

* Sees carrier spending falling worse than in past

* Q4 adjusted EPS $0.06 vs est $0.04

* Q4 rev $183.9 mln vs est $170.5 mln

* Shares fall 14 pct in extended trading

Nov 19 (Reuters) - Network equipment maker ADC Telecommunications Inc (ADCT.O) forecast a worse-than-expected first-quarter revenue as it sees carrier spending declining, sending its shares down more than 14 percent.

The company forecast first-quarter sales of $250 million to $275 million, compared with analysts' expectation of $274 million.

Under normal seasonality patterns, ADC would expect first-quarter revenue to fall in the low single digits, but the wider decline in carrier spending prompted the weaker outlook, the company said.

ADC, which makes broadband data access and other communications equipment, also posted quarterly results that beat Wall Street expectations, helped by an increase in European revenues.

The company's fiscal 2009 fourth quarter has been an unusual two-month period given that ADC is transitioning from an October-end to a September-end fiscal year.

For the fourth quarter ended Sept. 30, the company posted a loss from continuing operations of $19.2 million, or 20 cents a share. Excluding items, it earned 6 cents a share.

Revenue for the quarter was $183.9 million.

Analysts were expecting a profit of 4 cents a share, on revenue of $170.5 million, according to Thomson Reuters I/B/E/S.

For the current quarter, ADC expects a loss of 15 cents to 5 cents a share, including items.

Shares of the Minneapolis, Minnesota-based company were trading down about 11 percent at $5.91 in trading after the bell. They closed at $6.64 Thursday on Nasdaq. (Reporting by Sudipto Ganguly in Bangalore; Editing by Maju Samuel)



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