Re: AT&T's Ownership of Antec
Thread,
Since Antec Corp (sym: ANTC) is a Last Mile investment idea (100% of their products are HFC related), I thought I would post some information I recently dug up out of the SEC filings. Although they offer a large variety of products, ANTC a pure play in the infrastructure buildout of the broadband HFC networks.
I wanted to find out exactly what happened to TCI's interest in ANTC after AT&T purchased them. Plus I wanted to find out exactly what potential they have to sell products/services to Paul Allen's cable empire once he gets the upgrades rolling.
Below is what I found (I edited slightly) for future reference. I don't quite understand why TCI ownership was transferred to AT&T's Liberty Media Group? But I suppose AT&T is still 20%+ owner of ANTC nonetheless. Probably has something to do with Malone, but I don't recall the details.
As far as Paul Allen's empire, I wanted to see if ALL major MSO's were ANTC customers and it appears they are. Of course this could mean nothing when Paul Allen starts accepting bids for his upgrades. But at least ANTC has their foot in everyone's door already.
MikeM(From Florida)
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As of December 31, 1998, Tele-Communications Inc, was the beneficial owner of approximately 19% of the outstanding ANTEC common stock. TCI's beneficial ownership includes options to acquire an additional 854,341 shares (2.3%).
A significant portion of the Company's revenue is derived from sales to TCI aggregating $142.7 million for the year ended December 31, 1998. The Company had accounts receivable from TCI of approximately $25.0 million at December 31, 1998.
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As of March 31, 1999, Liberty Media Corporation (which is owned by AT&T) was the beneficial owner of approximately 21.1% of the outstanding ANTEC common stock. This beneficial ownership includes options to acquire an additional 854,341 shares. A significant portion of the Company's revenue was derived from sales to AT&T aggregating approximately $37.9 million for the quarter ended March 31, 1999.
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The cable industry is highly concentrated with the majority of U.S. domestic subscribers being served by approximately twenty-five major domestic multi-system operators ("MSOs"). In 1998, over 59% of
the Company's revenues were obtained from sales to the twenty-five largest MSOs.
The Company operates in one business segment, communications. They provide a range of customers with hybrid fiber / coax ("HFC") networks and integrative systems, coupled with a full range of products and services to support those networks and systems. This segment accounts for 100% of the consolidated sales, operating profit and identifiable assets of the Company.
ANTEC is a leading developer, manufacturer and supplier of optical transmission, construction, rebuild and maintenance equipment for the broadband communications industry. ANTEC provides a broad range of products and services to cable system operators and telecommunication providers. ANTEC supplies almost all of the products required in a broadband communication system, including headend, distribution, drop and in-home subscriber products. |
