Featured Case Study: ADC Telecommunications
ADC Telecommunications used FiREapps to achieve ERP Exposure
Data Visibility to Cut Costs and Reduce FX Risks in Less than 30 Days
- Industry: Telecommunications equipment manufacturing
- Revenues: Approx $1.5 B
- ERP environment: SAP
Summary
By automating the process of calculating FX exposures with FiREapps, the ADC Telecommunications Treasury Team is empowered to view net FX exposures on any given day during the month within just a few minutes, a process that had taken hours in the past. The transparency provided by FiREapps allows the team to monitor their exposures more closely and has contributed to a vast improvement in the company’s hedging program. Overall, the project represented a cost beneficial solution to managing ADC’s FX risk in an uncertain economic environment.
Having just experienced significant corporate staff reductions and mandates to reduce capital spending,
the goal of justifying the on-going cost of the project was critical. Cost- benefit analysis indicates that the
project was a tremendous success, qualitatively and quantitatively. As a result of all the improvements in
hedge coverage from the start of the project, over two fiscal quarters, approximately $2.8 million of FX
revaluation losses have been avoided.
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Industry: Manufacturing
Abstract: A leading provider of innovative merchandising systems for the retail and apparel industries with revenues in excess of US $1B had recently experienced a material impact to earnings as a result of foreign exchange volatility. In an effort to improve earnings predictability and the efficacy of its foreign exchange program, the Treasury department was tasked with finding a fast, yet cost effective solution.
Industry: Enterprise Software
Abstract: A leading provider of demand chain software solutions with revenues of approximately US $400m recently executed an acquisition of an industry rival. As a result the company had the daunting challenge of integrating the people, processes, and systems of the two companies. During this transformation, the client relied on the services and technologies provided by FiREapps™ to eliminate currency risk and integrate the foreign exchange programs across the newly formed entity.
Industry: Manufacturing
Abstract: A leading global provider of electronic payment solutions with operations located in the US, Brazil, China, Hungary, Mexico and the United Kingdom with reported revenues of US$ 260 million in 2002, operating income of USD 1.6 million experienced a material foreign exchange loss of USD 6.0 million and could not explain why.
Industry: High Tech / Software
Abstract: A leading provider of electronic design automation software and services used to design complex integrated circuits for the global semiconductor and electronics industries was interested in increasing efficiencies and improving the overall compliance and effectiveness of its Foreign Exchange Risk Management program
