Adc Telecommunications Inc (61478) SEC Filing 10-Q Quarterly report for the period ending Friday, July 31, 2009

Exhibit 99.1

ADC Reports Third Quarter 2009 Financial Results

• GAAP EPS from continuing operations of $0.06 per share; adjusted EPS of $0.17 per share in Q3
• Gross margin improves from 32.8% in Q2 to 34.8% in Q3
• Quarterly cash flow from operations of $49 million

MINNEAPOLIS--(BUSINESS WIRE)--September 1, 2009--ADC (NASDAQ: ADCT), today announced unaudited results for its third quarter ended July 31, 2009. The company reported third quarter revenue of $283.4 million and GAAP earnings from continuing operations of $5.6 million, or $0.06 per share. The GAAP earnings include certain after-tax charges of $10.9 million. Excluding these charges, the non-GAAP (adjusted) net earnings for the quarter were $16.5 million, or $0.17 per share.

“As ADC approaches the end of our fiscal 2009, we continue to make very good strategic progress in what remains an uncertain global macroeconomic climate. Highlights in the third quarter included sequential improvements in revenue and margins, strong positive free cash flow and better than expected earnings, demonstrating our ability to achieve improved financial performance,” said Robert E. Switz, chairman, president and chief executive officer of ADC. “As expected, customer spending has been modest. However, we remain well positioned to capitalize on any increase in next generation network investments by our global customer base. In addition, the fundamental changes that we have made to our operations during the past year, as well as our company-wide focus on efficiency have helped create the improvement in profitability seen in this quarter’s results.

“Looking ahead, our actions to realign our business operations and reduce costs are expected to further improve our financial results and increase our earnings potential. We expect these initiatives to position ADC as a company that can compete more effectively across the globe and create long term-value for our customers and shareowners,” said Switz.

Third Quarter Fiscal 2009 Results

• Net sales totaled $283.4 million, compared to $381.8 million for the third quarter of fiscal 2008 and $275.1 million for the second quarter of this fiscal year. The year-over-year decline in sales reflects the impact of the global recession across all of our businesses. The sequential improvement in the third quarter was driven primarily by the company’s Global Connectivity Solutions (GCS) business in the United States and, to a lesser extent, the Asia Pacific region.