| Balance Sheet
Exiting 3Q09, ADCT had cash and cash equivalents of $511.6 million versus $462.3 million in 2Q09. Accounts receivable totaled $173.7 million versus $178.2 million in 2Q09. Inventories were $140.0 million versus $149.4 million in 2Q09. DSO was 55.2 days in 3Q09, down from 58.3 days in 2Q09. Annualized inventory turns in the quarter were 5.3x versus 5.0x in 2Q09.
On the liabilities side, long-term notes payable was $651.0 million versus $650.4 million in 2Q09.
Cash Flow
Cash flow from operating activities from continuing operations was $49.2 million in 3Q09 versus $24.5 million in 2Q09. Capital expenditure was $7.2 million in 3Q09 versus $10.7 million in 2Q09. As reported by the Company, free cash flow was $40.3 million in 3Q09 versus $13.7 million in 2Q09.
Cost Reduction Initiatives
During 3Q09, ADCT realized approximately $16.0 million in cost savings as a result of its restructuring actions and recorded roughly $5.3 million as charges during the quarter. Going forward, management expects to record additional charges of $15.0 million to $25.0 million in the remainder of 2009 and throughout 2010.
On August 12, 2009, ADCT expanded the scope of its restructuring initiative announced on June 3, 2009 in the Europe, Middle East, Africa (EMEA) region to include the United States, Latin America and the Asia Pacific region. Over the next several quarters the Company plans to let go 350-400 full-time employees.
Restructuring initiatives in the EMEA region includes steps to restructure business to streamline operations, reduce costs, and better align the business with market opportunities in the region. The Company's restructuring plan primarily includes early retirement, voluntary resignations, and other reductions in force in the Company's EMEA-based Global Connectivity Solutions (GCS) business unit and Global Go-to-Market organization.
Others
On August 5, 2009, ADCT announced that Grand River Mutual Telephone Corp. has standardized on ADCT's equipment to overbuild its existing copper network with Fiber-to-the-Home (FTTH). The first phase of the network upgrade, which began in April in Bethany and Princeton, Missouri and Leon, Iowa, is expected to be completed by the summer of 2010.
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