SOURCE: Rothman Research

Rothman Research

March 05, 2010 09:17 ET

Telecommunication Sector Soars Amidst Global Economic Downturn

JOHANNESBURG, SOUTH AFRICA--(Marketwire - March 5, 2010) -  Despite threats of global economic downturn and withering investor confidence caused by the market's volatility, the telecommunication industry continues to hold its ground and even shows promising growth for the next 2 to 3 years based on historical chart movement and forecasted market demand, our telecommunication expert at Rothman Research says.

A thorough study by online research platform provides discerning facts about two telecommunications players, Leap Wireless International (NASDAQ: LEAP) and ADC Telecommunications, Inc. (NASDAQ: ADCT).

*These reports are a must read for everyone trading on the telecoms and can be downloaded absolutely free at or

Telecommunications Industry Association (TIA) expects the worldwide telecom market to grow to US$4.5 trillion by 2011, compared to $3.6 trillion in 2006 where most of the demand coming from the business and consumer sector in the U.S.

Rothman Research stock analyst, Jack Benassi sees "a silver lining for the telecommunication industry in this challenging environment as the valuation level now reflects remedial conditions in the economy."

Eyeing recent strategic maneuvers and technological advancements in the sector like fiber optics and mobile satellite internet as the key drivers for the growth, Rothman Research Benassi foresees Leap Wireless International and ADC Telecommunications Inc. to lead the march and even outgrow the sector. For more information, visit our web site at

Leap Wireless International - a wireless communications provider offering innovative, high-value wireless services. The company provides unlimited access to wireless voice and data services for a flat rate without requiring a fixed-term contract. The Company delivered solid financial performance in what is seasonally the most challenging quarter reflected in 25 percent year-over-year growth in adjusted OIBDA and 35 percent year-over-year increase in total customers.
The study conducted by research firm Rothman Research for this stock is available here for download.

ADC Telecommunications Inc. - plays a crucial role in enabling its customers to deliver dynamic video, voice, data and wireless services that are increasingly essential to businesses and on-the-go consumers. First quarter gross margin was 34.7 percent compared to adjusted gross margins of 29.5 percent during the same quarter of last year and 34.4 percent in the previous quarter. The year-over-year margin increase was driven by the company's successful actions to increase efficiency across its operating cost structure, which offset the negative impact of lower revenue.

ADCT posted a better-than-expected adjusted quarterly profit, helped partly by tighter cost controls. Net sales for first quarter totaled $265.6 million, compared to $299.7 million for the first quarter of fiscal 2009 and $291.2 million for the fourth quarter of 2009.

"Wireless won't be the only focus for telecom carriers in 2010. Major players are expected to continue their move into media, competing with cable companies for the coveted subscriber "triple play" of telephony, broadband and media services. The goal is to bundle multiple communication services to increase subscribers," explains Benassi. A full copy of the Rothman Research report is available at

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