Re: HFC Last Mile Equipment Company - ANTC
Thread,
I linked this post to my previous comments regarding Antec. Looks like they had a very good quarter lead by sales for HFC (hybrid-fiber coax) networking products. I particularly like the comments regarding the Arris Interactive, Cornerstone cable telephone products. It's pretty certain, this product will be key to AT&T's cable telephony roll out.
It's a pretty rare find for a company, this size, in this sector, where their PE is substantially LESS than their sequential revenue growth AND sequential income growth.
It's a tough relationship (AT&T/TCI/Nortel/Antec/Arris/Cornerstone)to figure out, but has been worthwhile for me...so far. All these numbers IMHO, prove that the cable plant is going to win the first leg of the race to deploy broadband services on a mass scale.
MikeM(From Florida)
PS I tried to cut out the fluff in the press release and leave just mainly facts below for easy future reference.
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ANTEC Announces Record Second Quarter Results
Revenues, Earnings, Bookings and Backlog Reach All Time High Levels
DULUTH, Ga., July 21 -- ANTEC Corporation today announced record setting results for the second quarter of 1999. Sales were $196 million, an increase sequentially of 35.2% as compared to the first quarter of 1999. Net income for the quarter was $8.0 million or $.21 per fully diluted share. Net income for the quarter was up 78% sequentially as compared to first quarter 1999.
John Egan, ANTEC Chairman and CEO says, "...Although ANTEC is fortunate to be in a strong growth market, we believe our results exceed overall growth rates in the industry and are a clear indication of the market acceptance of the new products that ANTEC has introduced over the past several quarters....Each of our four major product lines, Digital Systems, Network Technologies, Keptel and Telewire Supply made a strong contribution to our overall results during the quarter," said Bob Stanzione, President and COO, "and I expect those trends to continue throughout the remainder of the year and into 2000.
Digital Systems, which markets the Arris NT joint venture, Cornerstone Voice and Data products, recorded revenue increases of 369% as compared to the same period last year and 114% as compared to the first quarter of 1999. Arris continues to increase its worldwide leadership position in the voice and data over hybrid fiber coax (HFC) market.
"The main focus of Arris and Digital Systems during the quarter has been the delivery and installation of host digital terminals (HDTs) in major market headends throughout the United States in preparation for large scale nationwide deployments of voice, data services and for the introduction of combined Voice/Data products in 2000," said Mike Wearsch, President -- Digital Systems. "By the end of 1999, ANTEC will have installed headend capacity for well over 4.5 million lines of integrated Voice and Data Service."
The Arris Cornerstone Cable Modem received DOCSIS certification by CableLabs and on July 16, 1999 CableLabs qualified the Arris Cornerstone CMTS 1000 Data Headend. With the announcement by Arris of the Packet-Port(R), a DOCSIS-based outdoor voice and data unit, Arris, ANTEC and Nortel Networks now market the only product line that provides constant bit rate (CBR) voice and data as well as CableLabs Certified(R) standard data and internet protocol (IP) telephony in both outdoor and indoor configurations.
ANTEC Network Technologies develops and manufactures 1310nm and 1550nm optical, RF and power solutions for HFC networks. Second quarter 1999 revenues in Network Technologies were up 35.1% sequentially over the first quarter. "Our strong results in the quarter were driven by strong market acceptance of our LaserLink(R) optical products," said Jack Bryant, President -- Network Technologies. "Our market leading TransPlex dense wave division multiplexing (DWDM) products and the introduction and first shipments of a full line 870 mHz RF amplifiers and fiber nodes also contributed to our strength in the quarter. The TransPlex system, which debuted at the 1998 CableTec Expo, has been deployed by AT&T BIS in key markets including Seattle, the San Francisco Bay area, St. Louis, Bellingham, WA, Salt Lake City, Pittsburgh and Chicago.
TransPlex remains the only DWDM transport system operational in Europe with CTC in Barcelona and was the first such system to be deployed in the United States. We were especially pleased with our major infrastructure equipment upgrade win at Bresnan for 1,500 miles of HFC plant. Internationally, we have been selected as a lead provider of all HFC upgrade equipment to Mento (formally CTC) as they build their new two million home network in the Barcelona metropolitan area. In addition, we have won an important order in Hungary with UPC (formally UIH) for a 450,000 home system and will supply Cablevision SA with our HFC upgrade equipment for a 140,000 home network in Rosario, Argentina."
The Company also announced that their TSP line of power supply solutions has met with strong acceptance and shipments of these new power products will commence in the second half of 1999. Demand for voice, data and digital video return path transmission continues to drive fiber deeper into local networks. That trend combined with the interconnection of headends in major metro markets is driving long-term demand for the company's optical product offerings.
Keptel has successfully made the transition from a developer and manufacturer of commodity telephone network interface devices (NIDs) to a major manufacturer and supplier of a variety of high technology products including fiber management and fiber apparatus products for the CLEC and IXC markets. Qwest, ICG, Level3 and others currently use Keptel fiber apparatus products in the building of their networks. In the local telephone exchange market, Keptel is providing new high-value enabling products for DSL deployment. Specifically, Keptel apparatus cases, formerly used for T-1 transport applications, have been modified and are now being used by most telephone companies for their DSL deployments. In addition, Keptel now offers a line of ADSL splitters for use in local exchange applications. ..Keptel's revenues in the quarter were up 23.1% sequentially over the first quarter of 1999.
As previously announced in January of 1999, Rick Hamilton, a veteran of the electronics distribution business, joined ANTEC as President -- Telewire Supply. "In spite of the demands placed on our teams to implement an entirely new operating system during the first half of 1999, Telewire results improved 19.2% from the first to the second quarter of 1999..." |
