ANTEC expects not to meet 1998 estimates
ROLLING MEADOWS, Ill., Feb 3 (Reuters) - ANTEC Corp reported a fourth-quarter net loss and said Tuesday that it does not expect to meet current analyst's estimates for full year 1998 revenues and earnings.
''However, we are now taking steps to quickly return the company to profitability in the first half of 1998 and to accelerate the company towards strong profitability in the second half of 1998,'' said president Bob Stanzione.
ANTEC said it will consolidate its Rolling Meadows, Ill., corporate and administrative functions into either the Atlanta Technology Center or the Englewood, Colo., TeleWire Supply division headquarters in 1998 and 1999, it said.
It also said it expects to consolidate its two main facilities in Atlanta, as well as certain international operating and administrative functions in Miami and Chicago into Atlanta, ANTEC said.
As a result, the company said it will take a charge of $10 to $12 million in the first quarter of 1998 reflecting severance, move and real estate costs.
''ANTEC anticipates that these moves will reduce annual operating costs by as much as $10 million; however, the impact of these savings is not expected to be realized in full until 1999,'' said the communication networks firm.
Bob Stanzione, ANTEC president and chief operating officer said in a statement that later-than-expected resumption of sales to Tele-Communications Inc (Nasdaq:LBTYA - news; TCOMA - news) and possible weakness in Asia Pacific sales were the main reasons for the expected earnings shortfall.
According to First Call, analysts' consensus estimate for ANTEC's fiscal 1998 earnings is $0.68 a share.
Earlier, the company posted a fourth quarter loss of $0.11 per share diluted versus a profit of $0.04 in the year ago period. For fiscal 1997, it lost $0.55 a share, including a pre-tax charge of $0.46 a share related to an acquisition. |
