Antec Shares Pummeled
Duluth, Ga. -- Antec Corp. shares were hammered lastWednesday, even though its third-quarter earnings came in about as expected.
After closing at $59.56 Tuesday, Antec's share priceslid as low as $41.75 before closing at $44.63, down 21 percent. Early Thursday, itbounced back a bit, rising $1 shortly before noon.
Analysts cited investor jitters about Antec's shareprice and an upcoming profit margin pinch because the company is increasing production oflower-margin products. Antec said its gross-profit margin declined to 21.1 percent from22.4 percent in the second quarter.
The company said third-quarter revenue rose to $237.2million in the quarter, up 58 percent from the same period a year ago, and net incomedoubled, to $10.8 million from $5 million.
Sales to key customer AT&T Broadband & InternetServices rose 153 percent from the prior year's third quarter, to $105 million, anddomestic sales to other customers rose 33 percent, the company said.
The quarterly profit translated to 27 cents per share,which was the analysts' consensus, although some investors clearly expected more.
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