Higher Taxes Push Andrew Corp into Quarterly Loss

Andrew Corp. has reported total sales of US$503 million and a net loss of US$2 million, for the second quarter fiscal 2007. The company says that wireless Infrastructure sales increased 5% and gross margins improved compared to the prior year second quarter, despite continued challenges in the North American market and relocation and start-up costs associated with the new Joliet, Illinois facility.

Higher income taxes contributed to the loss in the quarter, which compared to net income for the prior year second quarter of $3.6 million.

In addition, the company intends to sell its Satellite Communications business, which comprised 6% of the company?s overall revenues for the second quarter. The company has already received initial indications of interest from several potential buyers.

"As we previously guided, the first half of our fiscal year has been challenging due to consolidation issues with two significant North American customers, volatile commodity costs and a number of important facility start-ups and relocations," said Ralph Faison, president and chief executive officer, Andrew Corporation. "While our revenue growth for the quarter was modest in our seasonally weakest quarter, we are pleased that we have been able to replace reduced revenues of over $130 million to those two customers in the first half of our fiscal year with significant increases in volume with other customers and in other geographies. We also have been able to recover a significant portion of our higher commodity costs incurred during the quarter."

Total orders of $503 million decreased 8% from the prior year second quarter due mainly to a reduction in orders for active products, which was partially offset by an increase in orders for antenna and cable products. Orders were down in the Americas, partially offset by strong orders in Asia Pacific across all product categories."

Posted to the site on 3rd May 2007