ANTC story from Bloomberg
<<Norcross, Georgia, Oct. 20 (Bloomberg) -- Antec Corp. shares fell 21 percent a day after the cable-network equipment maker reported third-quarter gross margins that missed one analyst's forecast.
Antec shares fell 11 15/16 to 44 5/8 in trading of 9.6 million, more than 12 times the three-month daily average.
Antec, which sells to companies such as AT&T Corp. and Nortel Networks Corp., said third-quarter gross margins -- sales less costs -- narrowed by 1.4 percent from the second quarter to 21.1 percent, though net income more than doubled to 27 cents a share. Soundview Technology Group analyst Truc Do had estimated 29 cents.
Do said that while company officials indicated that margin issues are resolved, he is ''taking a more conservative stance'' regarding margins in the fourth quarter.
The Norcross, Georgia-based company said shortages of aluminum castings delayed production and delivery of some products. Do said the company switched manufacturers during the quarter because its previous supplier's aluminum castings were inferior. ''The aluminum castings failed quality inspections. They fired the vendor and hired two more, which delayed manufacturing'' and caused lost revenue, Do said. Notwithstanding those difficulties, he raised his 12-month price target on Antec stock to 75. He had previously set a six-month target of 65, and rates the stock ''strong buy.''
Antec spokesman Jim Bauer said the company's manufacturing and supply problems affected only its network-technology division. A new supplier is in place, correcting manufacturing problems, and margins are expected to improve this quarter, Bauer said. ''Supply problems are behind us,'' he said.
Before today, Antec's shares had almost tripled this year.>>
quote.bloomberg.com ed73664f3a&view=story&version=marketslong99.cfg
|
