ADC’s 1Q Sales Up, Income Down2/28/2005 9:49 AM Eastern
ADC posted net sales from continuing operations of $243.4 million in its fiscal first quarter ended Jan. 28, up from $136.7 in the year-ago quarter.
The company’s operating income fell to $2.2 million from $8.4 million in the previous-year period, and income from continuing operations slipped to $13.6 million from $16.3 million.
“Our better-than-expected first-quarter sales of $243 million benefited from the addition of the KRONE acquisition and strong contributions from our ‘OmniReach’ fiber-to-the-X solutions and professional services,” ADC CEO Robert E. Switz said in a prepared statement.
Chief financial officer Gokul Hemmady added, “Going forward, we will focus on improving our gross margins through renegotiated purchasing agreements, moving production of certain products to lower-cost locations and achieving improved fix-cost efficiencies as production volumes increase. We expect these actions, combined with growing sales, should contribute to further earnings growth in 2005.”