ADC Telecommunications, based in Eden Prarie, Minn., cut its guidance Monday for the first quarter of 2009 and said it will reduce staff again in an effort to trim its costs. ADC let 350 employees go in October and will announce the number of positions affected in this round of belt-tightening at a later time.
The equipment manufacturer said it now expects to earn between $240 million and $255 million in the first quarter, down from prior predictions of revenue between $255 million and $290 million. As expected, the company blamed the lower projections on the slowing economy and tighter budgets for its customers.
It now projects a greater loss for the first quarter than initially expected, between 17 and 23 cents per share, compared to its initial projections of a 5 to 17 cent loss per share.
ADC will announce its first-quarter results officially on Mar. 3. The company's stock lost almost 30 percent of its value after the announcement Monday.
For more:
- see the Minneapolis/St. Paul Business Journal article here
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