Reliability also has downside

Reliability also has downside    Customers satisfied with their products because they are reliable and have the features they want is a good thing, but there’s also a downside if you are the firm handling returns.
   ATC Technology Corp., parent of ATC Logistics and Electronics, said Thursday it is forecasting full-year 2010 revenue of $475 million to $500 million and earnings per diluted share from continuing operations of $1.75-$1.95, down from previous guidance for revenue of $515 million to $550 million and earnings per diluted share of $2.13-$2.45.
   “As we have progressed through the first quarter, we are seeing lower than anticipated returns volume with AT&T,’ said Todd R. Peters, President and chief executive officer. ‘We believe the continued adoption of smart phones is impacting our returns volume as these phones typically generate lower returns due to increased customer acceptance, improved quality and longer customer retention periods as compared to other phones. Furthermore, we have fewer service opportunities related to the iPhone, which is a growing part of the AT&T subscriber base. Our updated guidance also reflects the impact of scope and timing changes related to new programs with existing and potential new customers.”
   In addition to the decline in returns volume with AT&T, the company said it is seeing reductions in scope and timing of certain anticipated new logistics programs, and the impact of slower than expected launches of new engine programs in the drivetrain business.
   American Shipper featured an article on ATC Logistics and Electronics in its November issue, pages 30-32.