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Thursday October 23 8:02 AM EDT
Company Press Release
ANTEC Announces Third Quarter Earnings in Line with
Expectations
ROLLING MEADOWS, Ill., Oct. 23 -- ANTEC Corporation (Nasdaq:ANTC) today announced
financial results for the third quarter of 1997. Revenues were $120.4 million in the quarter which
resulted in a loss of $2.0 million or $.05 per share. These results compare with third quarter 1996
revenues of $178.3 million and net income of $9.6 million or $.24 per share. Third quarter 1996
results included a pre-tax $3.8 million gain from the sale of its Canadian distribution business. As
previously announced on September 19th, 1997, results in the third and fourth quarter will be
impacted by delays in spending by major customers and the decision to maintain and increase
production capacity to meet anticipated product demand in 1998.
''Although current spending continues at about the same pace as in the third quarter, we continue to
be pleased with the outlook for capital spending by our customers in 1998 as they plan to upgrade
their networks,'' said John Egan, ANTEC CEO & Chairman. ''We've maintained our production
and service capabilities during 1997 so that we can meet the demands for the broadband transport
infrastructure that will be required to bring new products into our customers' markets.''
In September, a Telecommunications Inc. (Nasdaq:TCOMA - news), (TCI) /ANTEC joint venture
company, Integration Technologies, was selected by TCI to manage turnkey upgrade projects in the
Seattle, San Francisco Bay area and Salt Lake City markets. Engineering and design work in those
markets is now underway with product shipment anticipated to begin at the end of the fourth quarter
of 1997 and then accelerating into 1998 and beyond. In addition, other domestic and international
transport providers are in the process of adding additional channel capacity and two-way
capabilities to their networks.
''Through ongoing cost control and new product developments, we've positioned ANTEC to
leverage any top line growth that occurs as a result of infrastructure rebuilds,'' said Egan. ''We
believe that we now have the most complete line of hybrid-fiber coax products from head-end to
home and are well-positioned to meet the anticipated world wide demand.''
The forward looking statements in this report are subject to a number of factors that may cause
actual results to differ materially. Such factors include the implementation of other parties' current
plans, the negotiation and implementation of agreements as currently contemplated, the ability of the
company to profitably engage in new business activities, acceptance of products under cancelable
orders, performance of new products, ability to deliver new products in a timely and profitable
manner, developments and competition in customers' markets, general economic conditions,
availability and cost of capital changes or delays in customers' plans, other demands and
opportunities for capital (such as acquisitions), regulatory developments, and other factors more
fully described in our reports to the Securities and Exchange Commission, including our reports on
Form 10-K.
ANTEC Corporation (http://www.antec.com) is an international communications technology
company serving the broadband information transport industries. Headquartered in Rolling
Meadows, Ill., ANTEC has major divisional offices in Atlanta and Denver; manufacturing facilities in
New Jersey, Texas, Illinois and Juarez, Mexico and sales offices throughout Europe, Asia/Pacific
and Latin America. ANTEC specializes in the manufacturing, materials management and distribution
of products for hybrid/fiber coax (HFC) broadband networks, as well as the design and engineering
of these networks.
ANTEC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1997 1996 1997 1996
Net sales $120,365 $178,329 $364,661 $550,220
Cost of sales 91,049 130,983 275,624 409,027
Gross profit 29,316 47,346 89,037 141,193
Operating expenses:
Selling, general and
administrative expenses 28,253 32,254 82,729 96,264
Amortization of goodwill 1,227 1,245 3,699 3,734
Merger/integration costs 0 0 21,550 0
29,480 33,499 107,978 99,998
Operating income (loss) (164) 13,847 (18,941) 41,195
Other expense (income):
Interest expense and other, net 1,505 1,751 4,546 6,078
Gain on sale of Canadian business 0 (3,835) 0 (3,835)
Income (loss) before income taxes (1,669) 15,931 (23,487) 38,952
Income tax expense (benefit) 330 6,337 (6,347) 14,348
Net income (loss) ($1,999) $9,594 ($17,140) $24,604
Net income (loss) per common and
common equivalent share: ($0.05) $0.24 ($0.44) $0.62
Weighted average common and
common equivalent shares: 38,828 39,609 38,570 39,663
ANTEC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
1997 1996
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $8,783 $27,398
Accounts receivable, net 92,047 106,602
Inventories, primarily finished goods 117,521 138,785
Other current assets 3,184 9,706
Total current assets 221,535 282,491
Property, plant and equipment, net 38,669 35,947
Goodwill, net 160,920 167,128
Deferred income taxes, net 15,656 12,174
Other assets 17,087 13,153
$453,867 $510,893
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $25,115 $54,039
Accrued liabilities 40,194 43,808
Total current liabilities 65,309 97,847
Long-term debt 93,342 102,658
Stockholders' equity 295,216 310,388
$453,867 $510,893
SOURCE ANTEC Corporation |
