MINNEAPOLIS (AP) -- Communications equipment maker ADC Telecommunications Inc. has lowered earnings and sales expectations for the current fiscal year, citing lower demand.
ADC now expects earnings of 18 cents to 26 cents per share for the fiscal year ending Oct. 31, compared with its previous guidance in the range of 31 cents to 39 cents per share.
The company expects sales for the fiscal year in the range of $1.5 billion to $1.52 billion, compared with the previous guidance of $1.52 billion to $1.54 billion. Year-over-year sales growth now is estimated at 13 percent to 15 percent.
ADC said Tuesday its revised outlook largely reflects lower U.S. sales of copper and fiber connectivity products as customers review their budgets and adjust ordering. That also has affected demand for ADC products used as components by other equipment manufacturers.
"We remain firmly committed to managing our business strategically for the long term, but the inherent short-lead time nature of our business sometimes results in quarter-to-quarter market-related movements, up or down, in our sales expectations," said Robert E. Switz, president and chief executive of ADC.
ADC, which plans to announce results on Sept. 4 for the quarter ending Aug. 1, said third- and fourth-quarter sales will both likely be 3 percent to 5 percent lower than the second quarter.
ADC reported second-quarter sales of $403 million. Analysts polled by Thomson Financial have estimated sales of $404 million in the third quarter and $386 million in the fourth.
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