Struggling broadband-equipment provider ADC Telecommunications Inc. has added
some more detail in its cost-cutting measures as it tries to reach a quarterly
breakeven sales level.
The Minneapolis-based broadband-network provider said it will lower its
quarterly breakeven sales point from the original $300 million to $250 million.
To do so, it will exit entirely its optical-component business, either selling
or shutting down the existing product lines.
It has hired financial consultant firm Lehman Bros. Inc. to oversee this
process, with a final disposition set by Oct. 31.
ADC also will close down development and marketing for its 'Avidia'
digital-subscriber-line-access multiplexer (DSLAM) product, focusing its efforts
on a next-generation broadband-access gateway for DSL systems.
Plant closures are also part of the plan, with a total of 41 facilities
already shuttered in 2002. That will continue as ADC moves manufacturing
operations to an outsource basis.
And work-force reductions are continuing -- the company's head count has
dropped from 12,500 in November to 9,200 currently, with more to come, according
to the vendor.
ADC is set to release its earnings at market close