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Technology Stocks : Advanced Fibre (AFCI) ** IPO -- Ignore unavailable to you. Want to Upgrade?

To: Don S.Boller who wrote (525)	6/30/1998 4:25:00 PM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 3299

>THEY ALWAYS KNOW MORE THAN WE DO did they know about this one? after the close. Advanced Fibre Communications Indicates Second Quarter Results Below Expectations and Announces CEO Resignation June 30, 1998 04:10 PM PETALUMA, Calif., June 30 /PRNewswire/ -- Advanced Fibre Communications, Inc. (AFCI) today said that second quarter financial results would not meet published analyst expectations. AFC intends to release final results for the second quarter in mid-July. The Company also announced that Carl Grivner, AFC's President and Chief Executive Officer, has resigned from the Company to become Chief Executive, Western Hemisphere Operations for Cable & Wireless plc. Don Green, AFC's Chairman and founder, has assumed the role of CEO, a position he previously held until June of last year. "Second quarter sales and earnings will be below expectations," said Don Green, AFC Chairman and acting CEO. Green indicated that, based on preliminary information, revenues would likely be between $82M and $85M, with earnings per share between $.07 and $.09. "Despite this recent disappointment," Green continued, "we expect to experience approximately 60% growth during the first six months of 1998 when compared with the year earlier period." "During the second quarter we experienced a setback in sales in China primarily due to a change in local AFC management that in turn caused us to re-establish local distributor relationships, and due to a delay in the introduction of a digital switch interface. Domestically, the loss of a bid for sales at GTE last fall has resulted in a winding down of sales to that account. In addition, slower than anticipated penetration of the Regional Bell Operating Companies has caused a shortfall in U.S. sales growth." "Although not at the level of published analyst expectations, we expect to have a good, solid second half of the year," said Green. "We also plan to increase spending on research and development for new products and features." In citing the loss of former CEO and President, Carl Grivner, Green said, "Carl has played an important role in AFC to date. As such, we thank him for his many contributions and wish him the best in his new position. I will be running AFC in the near term, until a new CEO is named. We will be considering both external and internal candidates for the position." AFC has engaged the executive recruiting firm of Taylor - Winfield to secure Grivner's replacement. investor.msn.com