ADC, the fibre-optic network equipment company saw sales for the second quarter of 2001 decline by 15% from the same quarter's value in the previous. They were in line with the guidance that the company gave last month, coming in at $652m.
The company made a net loss of $115m compared with $72 million in the same quarter last year.
The Chairman and CEO Richard Roscitt said the company is "taking advantage of the downturn to restructure, streamline and prepare ADC for profitable growth in a stronger capital spending environment."
For the next two quarters, the company expects to dispose of non-core businesses. It is predicting sales of between $600m and $650m for the third quarter and, depending on when the businesses are sold, could see a reduction of $50 to $100m in sales in the fourth quarter.
The company is aiming for cost reductions of $50m to allow a return to profitability in the fourth quarter.
"The new ADC is being formed into a stronger global broadband company focused on strategic, long-term growth areas in optics, DSL, IP cable and software supported by core businesses in broadband connectivity products and systems integration services," Roscitt.
Although the company expects long-term growth in broadband, the broadband infrastructure and access division saw sales fall by 24% to $497m from their level in the same quarter last year. The biggest falls were seen in copper systems, including DSL and cable, as well as enterprise access systems.