ADC sees lighter spending, forecast turns lower

Equipment vendor ADC Telecommunications said this week that its was seeing lower spending from carriers on copper and fiber connectivity products, which drove the company to lower its sales outlook for its fiscal year (ending Oct. 31) to between $1.5 billion and $1.52 billion, from $1.52 billion to $1.54 billion. Though fellow vendor Adtran recently hinted at more cautious spending by carriers, ADC's announcement and the comments AT&T made this week about spending less in the second half of the year than it originally planned are adding more weight to concerns about lower carrier spending becoming a real problem for vendors later this year.

For more:
- see this Associated Press item at CNN Money