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January 28, 1998

ADC TELECOMMUNICATIONS SHARE PRICE COLLAPSES

By CBR Staff Writer

ADC Telecommunications Inc the Minneapolis-based provider of networking hardware for the telecommunications industry has seen its share price hit the skids and fall 37.5% to $17.50 this week, as a result of two successive profit warnings. Since the start of the year the stock has plummeted 57.3%, after a first quarter profit warning announced on 13 January, with earnings predicted as well below of the analysts estimates of $0.26 per share. The company has now been forced to admit that its earnings will be worse even than the analysts downgraded estimate, with revenue growing 10% to 15% with earnings flat compared with the first quarter of 1997. The company believes that its performance has been affected by a historic low seasonal demand for its products, the Asian financial crisis, and a slow down in demand from communications companies.

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