ADC to exit optical components

2 August 2002 -- ADC is to decide by the end of its fiscal year (end-October) whether to sell or close its optical components business.

2 August 2002 -- After lowering its target quarterly break-even sales point from USD300m to USD$250m, Minneapolis-based telecoms equipment maker ADC Telecommunications Inc is to decide by the end of its fiscal year (end-October) whether to sell or close its optical components business.

This comprises its line of passive and active optical components, including tunable and pump lasers and facilities in Canberra in Australia, Jarfalla in Sweden, and Vadnais Heights and Shakopee in Minnesota, USA.

ADC will also stop the development and marketing of its Avidia DSL Access Multiplexer (DSLAM), focusing instead on its next-generation iAN Broadband Access Gateway DSL access platform.

So far in fiscal 2002 ADC has closed 41 facilities, outsourced some manufacturing operations, and cut jobs. It expects to reduce staffing in fiscal 2002 from 12,500 by about 3,300 (26%) to 9,200.

www.adc.com

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