ADC Telecommunications Inc. (ADCT) reported a wider proforma net loss for the two-month fourth quarter ended, September 30, impacted by a significant drop in net sales as well as a restructuring expense. The company announced its results on proforma basis due to a change in its fiscal year end to September 30 from October 31. In after hours trade, the stock is down by more than 10%.
The Eden Prairie, Minnesota-based company reported a proforma net loss for the fourth quarter of $20.4 million or $0.21 per share, compared to $5.6 million or $0.05 per share for the year-ago quarter.
Loss from continuing operations was $18.8 million or $0.19 per share, compared to $7.9 million or $0.07 per share in the year earlier period. Loss from discontinued operations was $1.6 million or $0.02 per share, compared with income from discontinued operations of $2.3 million or $0.02 per share for the same period last year.
On adjusted basis, excluding after-tax charges of $25.5 million, non-GAAP net earnings for the quarter was $6.3 million or $0.06 per share.
Proforma net sales for the quarter decreased to $293.6 million from $355.9 million for the prior-year quarter.
Net loss for the two month period was $19.8 million or $0.20 per share on net sales of $183.9 million.
For the two month period, net sales from global connectivity solutions segment was $143.3 million, from network solutions $13.5 million and net sales from professional Services was $27.1 million.
Total operating expenses on proforma basis rose to $113.0 million from $106.2 million for the year-ago period mainly due to an increase in restructuring charges to $26.2 million from $0.2 million last year.
"As the economy slowly recovers, we are well positioned to provide our customers worldwide with industry-leading solutions at competitive prices and lead times as they make the necessary network investments to meet growing bandwidth demand," Robert Switz, chairman, president and chief executive officer said.
For the full year, proforma net loss was $506.3 million or $5.12 per share, compared to $35.8 million or $0.30 per share for the same period last year. For the eleven-month period, net loss was $474.3 million or $4.87 per share compared with proforma net loss of $10.0 million or $0.09 per share for the same period last year.
Net sales for the full year period on proforma basis slipped to $1.15 billion from $1.44 billion last year. For eleven month period net sales dropped to $996.7 million, compared to $1.31 billion in the same period last year on proforma basis.
For the full year, analysts polled by Thomson Reuters had expected the company to report earnings per share of $0.21 on revenues of $986.81 million.
Looking ahead to the first quarter of 2010, the company expects GAAP loss per share in the range of $0.15 to $0.05 and net sales to be in the range of $250 million - 275 million.
Thursday, ADCT closed at $6.64, down $0.26 or 3.77%, on the Nasdaq. In after hours, the stock dropped further $0.69 or 10.39%, trading at $5.95.
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