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B R E A K F A S T W I T H T H E F O O L Wednesday, November 29, 2000 benjamin.rogers@enron.com _________________________________________________________________ REGISTER TO BECOME A FOOL -- GET FREE STUFF! http://www.fool.com/m.asp?i=217676 _________________________________________________________________ Sponsored By: NDB Apply Now and get $75 in Free Trade Commissions when you open your account with National Discount Brokers / ndb.com. Another way we take you under our wing. http://www.lnksrv.com/m.asp?i=217677 "Democracy is a device that ensures we shall be governed no better than we deserve." -- George Bernard Shaw ADC'S SOLID Q4 Broadband equipment company ADC reported strong growth in Q4. By LouAnn Lofton Broadband networking equipment maker ADC (Nasdaq: ADCT) reported fourth-quarter and fiscal year-end results yesterday after the market's close. Strong broadband connectivity sales led to net income growth (excluding charges) of 94%, beating estimates. ADC's sales for the fourth quarter were $1.03 billion, ahead of last year's $634 million by 63%. Pro forma operating income increased 121% to $206 million, from $93 million. Pro forma net income for the quarter was $138 million versus the year-ago $71 million. On a per-share basis, ADC earned $0.18. Analysts as polled by First Call/Thompson Financial expected $0.17 a share. ADC's broadband connectivity sales grew 102% compared to last year. The company's international sales increased 63% to $227 million. North America and Europe continue to be ADC's largest sales regions. Looking ahead to the next fiscal year, ADC expects full-year earnings per share to be between $0.68 and $0.70, which is in-line with current estimates. The company sees its sales for the year coming in between $4.15 billion and $4.30 billion. ADC does expect first-quarter earnings to come in shy of current estimates by a penny. The company pointed to seasonal trends as the reason for this. ADC's chairman and CEO, William J. Cadogan, said of the results, "We were firing on all cylinders as each of our three major business groups and international hit all-time high sales in the quarter. Our outstanding employees were key contributors in ADC surpassing the significant milestone of one billion dollars in sales for the first time in a quarter." News to Go _________________________________________________________________ NEWS TO GO Argentinians won't be getting any more Wendy's (NYSE: WEN) Spicy Chicken Sandwiches starting soon. The fast-food company said yesterday that it is immediately closing all 18 of its restaurants in Argentina. They've been unprofitable for more than a year. The company will take a onetime charge in the fourth quarter of between $17 million and $22 million, or $0.08-0.11 a share. CEO Jack Schuessler said, "The economic and competitive conditions we faced in Argentina were just too difficult to overcome, despite the efforts of our management team and a dedicated crew at the stores." Internet consulting company iXL (Nasdaq: IIXL) said on Tuesday that it will lay off 850 employees and close seven offices. iXL cut 350 jobs back in September. The latest round of job cuts represent about 35% of iXL's staff. iXL will take a charge in the fourth quarter for the restructuring, and expects to be profitable by early 2001. The company has about 300 clients, and says it plans to start focusing heavily on its top 75 clients. Bill Getch, an iXL spokesman, said, "Our larger clients, they want deeper engagements.... But they're taking much more time to select and contract a lot of that work. So the sales cycle has extended. If you've built a large infrastructure and the sales cycle has lengthened... then you either increase the pipeline fast enough to sustain that infrastructure or you reduce that infrastructure." Pork processor Smithfield Foods (NYSE: SFD) reported second-quarter earnings yesterday. The company's net income doubled to $44.6 million, or $0.81 a share, from last year's $22.2 million, or $0.48 a share. Smithfield, therefore, beat the consensus estimate of $0.77 a share. The company's results were driven by live hog prices that were 20% higher in the second quarter than they were in the previous second quarter. Sales increased to $1.4 billion from $1.2 billion in the year-ago period. BFGoodrich (NYSE: GR) is selling its performance materials division to an investor group for $1.4 billion, the company said today. This completes BFGoodrich's move from a tire and chemical company to an industrial products and aerospace company. BFGoodrich will get $1.2 billion in cash and $200 million in debt securities for the business. Possible uses for the proceeds from the sale are debt repayment, acquisitions, and share repurchases, according to the company. Check out all of yesterday's market Foolishness with a single click. http://www.fool.com/m.asp?i=217678 _________________________________________________________________ EDITORS' PICK People don't stop eating when the economy is bad. Jeff Fischer looks at food and beverage companies from an investor's perspective. http://www.fool.com/m.asp?i=217679 _______________________________________________________________ -News & Commentary http://www.fool.com/m.asp?i=217680 -Fool Community http://www.fool.com/m.asp?i=217681 -Post of the Day http://www.fool.com/m.asp?i=217682 -Latest Fribble http://www.fool.com/m.asp?i=217683 -Latest Market Numbers http://www.fool.com/m.asp?i=217684 ____________________________________________________________ My Portfolio: http://www.fool.com/m.asp?i=217685 My Discussion Boards: http://www.fool.com/m.asp?i=217686 My Fool: http://www.fool.com/m.asp?i=217687 Fool.com Home: http://www.fool.com/m.asp?i=217688 My E-Mail Settings: http://www.fool.com/m.asp?i=217689 Sponsored By: NDB Apply Now and get $75 in Free Trade Commissions when you open your account with National Discount Brokers / ndb.com. Another way we take you under our wing. http://www.lnksrv.com/m.asp?i=217690 17 INDUSTRIES WORTH A LOOK See which industries our writers think will be hot next year with Industry Focus 2001. http://www.lnksrv.com/m.asp?i=217691 TEN SECRETS TO RETIRING EARLY Read a free preview of this report on Soapbox.com http://www.lnksrv.com/m.asp?i=217692 FOOL DIRECT E-MAIL SERVICES Need to change your address or unsubscribe? You can also temporarily suspend mail delivery. Click here: http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers @enron.com< Have ideas about how we can improve the Fool Direct or new e-mail products you'd like to see? Try our discussion board: http://www.fool.com/m.asp?i=217693 ____________________________________________________ © Copyright 2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. . MsgId: msg-9507-2000-11-29_9-20-14-3361418_2_Plain_MessageAddress.msg-09:25:22(11-29- 2000) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com
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