Antec Hurt by AT&T Order Freeze

AT&T Broadband purchases account for a "significant portion" of Antec sales

November 24, 2000

2 Min Read

ANTEC Corporation (Nasdaq: ANTC) today announced it has been notified by AT&T Broadband that, as a result of AT&T Broadband's end-of-year budget balancing process, ANTEC is to hold shipment of all pending orders until further notice.

Although it is too early to estimate the full impact of this action, the delay will have a material adverse impact on revenue and earnings results because AT&T Broadband purchases represent a significant portion of total ANTEC sales. As further details of the situation become available and are reviewed during the next week, ANTEC will provide updated guidance regarding the fourth quarter and full year 2001.

"We are working closely with AT&T Broadband to minimize the impact of this delay in shipments, and we expect the effect mainly in the fourth quarter, with some possible overflow into early next year," said Bob Stanzione, ANTEC president and CEO. "Conversations we have had with AT&T Broadband indicate that the delay will be short term and their commitment to phone service over cable networks remains key to their growth strategy in 2001 and beyond. Further, they have told us that our relationship as a strategic vendor will remain strong, and we expect that our overall level of business with them to continue to grow over the next year. With all of this in mind, we expect that 2001 will be another year of growth of hybrid fiber coax networks worldwide," concluded Stanzione."

AT&T Broadband recently announced that it now has more than 400,000 cable telephony subscribers in service and are on track to meet their subscriber targets for the year.

ANTEC also indicated that it does not anticipate the delay in shipments will have a material effect on the previously announced acquisition of Nortel Network's ownership in the Arris Interactive, LLC, joint venture.

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