The Minneapolis-based company, which supplies fibre optics network equipment as well as broadband software and services, said the latest reductions would be made in its fourth quarter and would increase annual savings by $200m to $450m.
ADC also announced the sale of its Access Products Division and Broadband Wireless Group to Platinum Equity, a privately-held technology company. About 350 staff would move as a result of the sale. Financial terms were not disclosed, but ADC said the sale would help strengthen its balance sheet.
It added that it did not expect to reach its $600m estimate for third-quarter revenues and expected to report pro forma earnings of 5 cents per share, at the low end of current forecasts.
In a conference call Rick Roscitt, chairman and CEO of ADC said, We are ahead of plan in our overall cost reductions to date and have made enormous progress in our goal to return to profitability and positive cash flow.
By October 31, the company would have cut about 40% of its November 2000 headcount, ADC said.
