To bad I missed this when if hit the wire.
Applies to -- ANTC -- NT
ANTEC Announces Second Quarter Results
ANTEC Announces Second Quarter Results
DULUTH, Ga., Jul 18, 2001 /PRNewswire via COMTEX/ -- ANTEC Corporation (Nasdaq:
ANTC) today announced financial results for second quarter of 2001. Revenues of
$177.2 million in the quarter reflect the widespread slowdown in
telecommunications infrastructure spending and compare with revenues of $212.8
million in the prior quarter and $283.0 million in the second quarter of 2000.
Earnings per diluted share produced a loss of $0.11 excluding unusual pre-tax
items of $5.0 million in previously disclosed severance payments and $4.7
million for a one-time warranty expense. Earnings per diluted share including
the unusual items resulted in a loss of $0.27.
Although backlog at quarter end was down sequentially to $91.5 million compared
to $111.5 million at the end of the first quarter, bookings for the second
quarter were $157.2 million, an increase of about $42.4 million as compared to
the prior quarter. In addition, the Company's inventory investment was reduced
during the quarter by approximately $45.1 million to $232.2 million and its
accounts receivable investment was also reduced by approximately $19.3 million
to a level of $135.2 million during the same period. The Company produced
operating cash flow of $42.2 million and achieved a debt reduction of $40.5
million from $79.0 million to $38.5 million during the second quarter.
International sales of $19.6 million in the second quarter were up approximately
92% sequentially over first quarter 2001 international sales of $10.2 million.
Sales to AT&T Broadband were $54.6 million in the second quarter, as compared to
$90.9 million in the prior quarter. Comparison to the prior quarter is affected
as previously disclosed by an approximate $30.0 million carryover of AT&T sales
from the fourth quarter of 2000.
"Overall business appears to be stabilizing," said Bob Stanzione, ANTEC
President & CEO. "Nevertheless, we continue to focus our ongoing efforts on
improvements to our bottom line, cash management and aggressive R&D investments
in new product development, especially in our next generation IP- based cable
telephony and Internet access systems. We have undertaken numerous actions to
lower our breakeven point and return to profitability by the end of this year.
Most importantly, we are looking forward to becoming an entirely new company
later this month upon the completion of our previously announced acquisition of
Arris Interactive LLC. Our new company will be so fundamentally different that
we will adopt a new name, Arris, and a new Nasdaq trading symbol, ARRS. The new
Arris will possess deep research and development capabilities and a leading
international market position in cable telephony and internet solutions. Our
wide product offerings for broadband network operators worldwide will hold us in
good stead when infrastructure spending growth resumes. As we enter the second
half of the year, I am particularly pleased by our debt reduction progress as
well as other balance sheet improvements," concluded Stanzione.
The Company noted that Arris Interactive had recently announced the introduction
of the CMTS 1500, a DOCSIS 1.1 compatible integrated services terminal. This new
product enables cable operators to economically offer broadband voice over IP
(VoIP) telephony service. Also of note during the quarter were major product
enhancements to their LightPlex(TM) Dense Wave Division Multiplexing product and
to advanced digital return path optical products, which allow operators to
increase the capacity of their existing fiber investments as well as lower the
cost of network operations.
Details of sales, gross profits and R&D in each of the four product categories
are listed below (in thousands). Optical & Broadband Transmission product sales
improved over first quarter 2001 levels, but continue to reflect the slowdown in
infrastructure spending by system operators. Gross profit in the Optical
category was impacted by the warranty expense incurred as described above. As
previously disclosed, the apparent quarter over quarter reduction in sales of
Cable Telephony & Internet Access products was primarily caused by the carryover
of fourth quarter 2000 AT&T Broadband sales into the first quarter of 2001.
Quarter ended June 30, 2001
Cable
Optical & Telephony Outside
Broadband Internet Plant & Supplies &
Transmission Access Powering Services
Sales $34,550 $68,124 $ 28,787 $45,724
Gross Profit $(349) $10,951 $ 3,557 $8,509
R & D $4,443 0 $1,121 0
Quarter ended June 30, 2000
Cable
Optical & Telephony Outside
Broadband Internet Plant & Supplies &
Transmission Access Powering Services
Sales $77,864 $87,537 $45,727 $71,888
Gross Profit $21,345 $12,374 $7,644 $11,463
R & D $4,917 0 $895 0
Quarter ended March 31, 2001
Cable
Optical & Telephony Outside
Broadband Internet Plant & Supplies &
Transmission Access Powering Services
Sales $30,699 $103,004 $36,036 $43,049
Gross Profit $2,316 $16,218 $4,600 $8,957
R & D $4,301 0 $1,308 0
"Continued uncertainty in the industry regarding the timing of resumed spending
causes us to remain cautious concerning guidance beyond the current quarter,"
said Larry Margolis, ANTEC EVP & CFO. "It now appears that revenues for
standalone ANTEC for the third quarter will be similar to second quarter
revenues and we expect that earnings per diluted share on a standalone basis,
excluding any unusual items, will slightly improve in the third quarter as
compared to the second quarter. It should also be noted that beginning in the
third quarter, we will report on a cash earnings basis. As a point of reference,
cash earnings in the second quarter of 2001 would have been a loss of 9 cents
per diluted share excluding unusual items."
On July 2, 2001 ANTEC announced that the Securities & Exchange Commission had
declared effective the amended S-4 Registration Statement for its previously
announced agreement with Nortel Networks Corporation (NYSE: NT; Toronto) to
realign their cable businesses in order to create a new company to lead the
broadband access industry. A special stockholders' meeting is now scheduled for
July 25, 2001 to approve the transaction. Assuming that all approvals are
obtained, the transaction should close by the end of July 2001 and the stock of
the new company will begin trading under the Nasdaq stock symbol of ARRS
immediately thereafter.
ANTEC has scheduled a conference call to discuss second quarter financial
results at 4:30 pm EDT on Wednesday July 18, 2000. The call may be accessed by
dialing 888-868-9080 and asking for the ANTEC Conference Call. The call will
also be webcast at www.streetevents.com using the ticker symbol ANTC. A replay
of the conference call will be available through Monday, July 23, 2001 at
877-519-4471, PIN# 2701557.
ANTEC and the new holding company have filed a registration statement, which
contains a proxy statement/prospectus of ANTEC, and other documents with the
Securities and Exchange Commission. Investors and stockholders are urged to read
the proxy statement/prospectus and any other relevant documents filed with the
SEC because they contain important information. Investors and stockholders are
able to receive the proxy statement/prospectus and other documents filed by
ANTEC and the new holding company free of charge at the SEC's Web site,
www.sec.gov, or from ANTEC Investor Relations at 11450 Technology Circle,
Duluth, Georgia 30097, Attention: James A. Bauer. ANTEC and its directors and
executive officers may be deemed to be participants in the solicitation of
proxies from the stockholders of ANTEC in connection with the realignment.
Information about the directors and executive officers, their ownership of ANTEC
stock and their interests in the realignment is set forth in the proxy
statement/prospectus. Investors may obtain additional information regarding the
directors and executive officers in ANTEC's Annual Report on Form 10-K, as
amended, for the year ended December 31, 2000.
ANTEC Corporation (http://www.antec.com ) is an international communications
technology company serving the broadband information transport industries. ANTEC
specializes in the manufacturing and distribution of products for hybrid
fiber-coax broadband networks, as well as the design and engineering of these
networks. Headquartered in Duluth, Georgia, ANTEC has sales offices in Europe,
Asia/Pacific and Latin America; major offices in Duluth, Georgia and Englewood,
Colorado; and manufacturing facilities in Juarez, Mexico, El Paso, Texas, and
Rock Falls, Illinois.
Forward-looking statements:
Certain information and statements contained in this press release constitute
forward-looking statements with respect to the financial condition, results of
operations, and business of ANTEC. Statements that are based on current
expectations, estimates, forecasts, and projections about the markets in which
the Company operates and management's beliefs and assumptions regarding these
markets are forward-looking statements. The Company cautions that any
forward-looking statements made are not guarantees of future performance.
Statements made in this press release, including those related to:
* projected results for the third quarter 2001;
* the Company's international market position;
* achievement and timing of profitable results based on management's
actions;
* the Company's R&D capabilities;
* the anticipated timing of the close of the proposed transaction; and
* the impact of combining ANTEC with Arris Interactive, L.L.C.
are forward-looking statements. These statements involve risks and uncertainties
that may cause actual results to differ materially from those set forth in these
statements. Among other things,
* projected results for the third quarter 2001 are based on preliminary
estimates, assumptions and projections that management believes to be
reasonable at this time;
* international market position is dependent on global financial economic
conditions, foreign exchange and interest rate fluctuations, as well as
local content requirements, product approvals and competitive
developments;
* because the market in which ANTEC operates is dynamic, actions taken
and contemplated may not achieve the desired impact relative to
changing market conditions and the success of these strategies will be
dependent on the effective implementation of those plans while
minimizing organizational disruption;
* the depth of the Company's R&D capabilities is dependent on its ability
to fund new technologies and react or anticipate movements in industry
standards;
* the gross profit for the product category disclosure was derived from
estimates using standard product margins and an allocation of
manufacturing variances based on several factors, including a
percentage of product category sales;
* the consummation of the transaction is subject to the approval of
ANTEC's shareholders and other standard closing conditions; and
* the process of integrating an acquired business into ANTEC's current
business is risky and may involve unforeseen operating difficulties
including the diversion or dilution of management's time from ongoing
development of the business; possible decline in employee morale and
retention issues; and the need to integrate various management
information systems.
In addition to the factors set forth elsewhere in this release, other factors
that could cause results to differ from current expectations include: the impact
of rapidly changing technologies; the impact of competition on product
development and pricing; the ability of ANTEC to react to changes in general
industry and market conditions including regulatory developments; rights to
intellectual property, market trends and the adoption of industry standards; and
consolidations within the telecommunications industry of both the customer and
supplier base. These factors are not intended to be an all- encompassing list of
risks and uncertainties that may affect the Company's business. Additional
information regarding these and other factors can be found in ANTEC's reports
filed with Securities and Exchange Commission. In providing forward-looking
statements, the Company is not undertaking any obligation to update publicly or
otherwise these statements, whether as a result of new information, future
events or otherwise.
ANTEC CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Net sales $177,185 $283,016 $389,973 $539,587
Cost of sales 154,517 230,190 335,214 435,481
Gross profit 22,668 52,826 54,759 104,106
Operating expenses:
Selling, general,
administrative and
development 36,486 33,906 71,692 64,637
Amortization of
goodwill 1,230 1,230 2,459 2,459
37,716 35,136 74,151 67,096
Operating (loss) income (15,048) 17,690 (19,392) 37,010
Interest expense 2,313 2,541 5,059 5,139
Other (income) expense, net (198) 1,442 55 1,715
Loss (gain) on marketable
securities 402 (5,900) 761 (5,900)
(Loss) income before income
taxes (17,565) 19,607 (25,267) 36,056
Income tax (benefit) expense (7,296) 8,013 (10,498) 14,735
Net (loss) income ($10,269) $11,594 ($14,769) $21,321
Net (loss) income per common
share
Basic $(0.27) $0.31 $(0.39) $0.56
Diluted $(0.27) $0.28 $(0.39) $0.52
Weighted average common
shares
Basic 38,290 37,867 38,271 37,779
Diluted 38,290 44,733 38,271 44,623
Supplemental Information to the Statements of Operations:
Excluding the effects in 2001 of severance expenses, one-time warranty
expense, and mark-to-market adjustments on investments, and the effects in
2000 of pension curtailment gain, additional inventory write-off related
to the restructuring charge, mark-to-market adjustments on investments,
and accrual of LANcity transaction expenses which was later reversed in
the fourth quarter of 2000:
Gross profit $28,643 $56,326 $60,734 $107,606
Operating (loss) income ($5,317) $21,190 ($9,661) $38,402
(Loss) income before income
taxes ($7,432) $18,457 ($14,775) $32,798
Net (loss) income ($4,347) $12,102 ($8,643) $20,494
Net (loss) income per common
share:
Diluted ($0.11) $0.29 ($0.23) $0.50
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SOURCE ANTEC Corporation
CONTACT: Jim Bauer, Investor Relations of ANTEC Corporation,
+1-678-473-2647, or jim.bauer@antec.com
URL: antec.com
prnewswire.com
Copyright (C) 2001 PR Newswire. All rights reserved.
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KEYWORD: Georgia
INDUSTRY KEYWORD: CPR
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SUBJECT CODE: ERN
STOCK SYMBOLS: [(antc)]\ [(nt)] |
