ADC lowered its Q3 guidance and said it would lay off an additional 2,500 workers. It will close several facilities and sell two of its units for an undisclosed sum.
Chair and CEO Rick Roscitt said the company doesn't expect to reach its stated $600 million, low-end guidance. ADC also announced its anticipated pro forma loss of 5 cents a share.
The company expects to reduce its annual operating expenses by $200 million, starting in its fourth quarter, which ends Oct 31, 2001, it says. Both quarters will have nonrecurring and restructuring charges related to cost-cutting, although ADC hadn't determined those yet.
Cost reduction includes cutting about 2,500 positions above the 7,000 already cut since November, the company says. By the end of October, it will have reduced its workforce by 40 percent.
It also will eliminate some product lines and sell others. The company says it's agreed to sell its Access Products Division and Broadband Wireless Group to Platinum Equity for an undisclosed amount. The sales will close at the end of this month and include facilities in Portland, Ore., and McMurray, Pa. ADC says the sales will include its ATM concentrators and multiplexers, service delivery units and data service units and channel service units.
Finally, ADC says it is closing facilities or curtailing operations in Copenhagen, Denmark, and El Paso, Texas. It has stopped construction on manufacturing facilities in Shakopee, Minn.; Juarez, Mexico; and Glenrothes, Scotland.