Well, when the blew earnings, that didn't help. Here's DLJ's most recent report:
ANTEC CORP. (ANTC: $19.75)*+ 12/03/98
ANTEC's 4Q To Miss, But LAN City Moves Into The Picture
Earnings Per Share Old New P/E Ratios
(FY:Dec.) 1999E $1.00 $ 19.8
1998E 0.42 0.30 65.8
1997A (0.07) -179.5
Rating: TOP PICK Change: None 12-Mo. Target: $30
ANTEC Corporation made two significant announcements this morning, the first expressing caution regarding fourth quarter results, but the second very positive for the longer term results. Citing a continuing slump in international demand, and labor shortages for system installations domestically, the company now believes that fourth quarter revenues will be in the $130 million to $135 million range, up a respectable 13-17% but below our existing $152 million forecast. Earnings are expected to be in the $0.02-$0.04 share range versus a loss of $0.07 a year ago and our previous estimate of $0.14. On the plus side, the company has reached an agreement with Northern Telecom to fold Nortel's cable modem business (formerly LAN City) into the Arris Interactive joint venture. As part of the agreement, ANTEC will receive exclusive rights to LAN City's modem products in the US. This transaction is expected to be accretive throughout 1999. To be conservative, we are maintaining our $1.00 estimate for 1999, but believe there is meaningful upside to that number. While the near term earnings miss is a disappointment it does not reflect waning customer demand nor market share shifts. Furthermore, we believe the news is more than offset by the positive implications of the cable modem business. (M.M.)
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© 1997 Donaldson, Lufkin & Jenrette Securities Corporation as to the information and opinions expressed herein.
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