I picked this up from prnews wire to-day. This may be the culprit. However, things may get better in future. Good luck!
ANTEC Announces Increased Quarterly Earnings and Improved Gross Margins
ROLLING MEADOWS, Ill., Oct. 22 /PRNewswire/ -- ANTEC Corporation
(Nasdaq: ANTC) today reported net income of $6.1 million or $0.26 per share
for the third quarter 1996. This compares to a ($0.52) loss per share in the
third quarter of 1995. These results include a pre-tax $3.8 million ($0.10
per share) non-operating gain from the sale of its Canadian distribution
business in this quarter and the one-time pre-tax charge of $21.7 million
incurred in the third quarter of last year in connection with the
reorganization of the Company's operations to reduce costs and refocus
marketing and development efforts. Excluding these non-recurring items,
earnings per share for the quarter increased 220% to $0.16 compared to
$0.05 in last year's quarter. Operating income for the current quarter
increased 66% to $9.5 million versus $5.7 million in the third quarter of
1995, excluding the non-recurring charge. These results were achieved on
third quarter revenues of $158 million down 4.6% from the third quarter of
1995.
"We are pleased with the financial results for the quarter, but we
experienced softer than anticipated overall sales levels. We expect that the
fourth quarter will also be softer than anticipated," said John Egan, ANTEC
President and CEO. "However, the management and financial controls that we
put in place last year continue to worked very well and enabled our earnings
levels to improve in the third quarter."
As a result of the operating controls implemented last year, expense
indicators continued to show improvement. SG&A expense declined more than
10 percent to $28.4 million versus $31.7 million in last year's third quarter.
Interest and other expense declined 23% from $2.7 million in last year's third
quarter to $2.0 million primarily attributable to reductions in debt levels
required for inventory and accounts receivable.
At the same time, gross profit margin percent increased 1.5 percentage
points (or 6%), to 24.8% compared to last year's level of 23.3%. This
improvement reflects a higher mix of manufactured product sales as compared
to distributed product sales.
ANTEC Corporation is an international communications technology company
headquartered in Rolling Meadows, IL with major offices in Atlanta and Denver.
ANTEC specializes in the design and engineering of hybrid fiber/coax (HFC)
architectures used in today's broadband networks and the engineering,
manufacturing, product development and distribution of products for these
networks.
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 acceptance of product under cancelable orders, performance of new
products, ability of ANTEC to deliver new products in a timely and profitable
manner, developments and competition in customers' markets, general economic
conditions, availability and cost of capital, other demands and opportunities
for capital (such as acquisitions), regulatory developments, and other factors
more fully described in ANTEC's reports to the Securities and Exchange
Commission, including its report on Form 10K for 1996.
ANTEC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
Three months ended Nine months ended
Sept. 30, Sept. 30,
1996 1995 1996 1995
Net sales $157,956 $165,520 $483,132 $489,699
Cost of sales 118,815 126,926 367,919 372,544
Gross profit 39,141 38,594 115,213 117,155
Operating expenses:
Selling general and
administrative
expenses 28,372 31,660 85,226 90,705
Amortization of
goodwill 1,245 1,189 3,734 3,555
Non-recurring items 0 21,681 0 21,681
29,617 54,530 88,960 115,941
Operating income
(loss) 9,524 (15,936) 26,253 1,214
Other expense (income):
Interest expense and
other, net 2,039 2,660 6,957 8,352
Gain on sale of
Canadian business (3,835) 0 (3,835) 0
Income (loss) before
income taxes 11,320 (18,596) 23,131 (7,138)
Income tax expense
(benefit) 5,222 (6,668) 11,465 (686)
Net income (loss) $6,098 ($11,928) $11,666 ($6,452)
Net income (loss)
per common and
common equivalent
share: $0.26 ($0.52) $0.50 ($0.28)
Weighted average common
and common equivalent
shares: 23,432 22,904 23,486 23,018 |
