Antec Corp.'s exposure to Asia and its reliance on
Tele-Communications Inc. continued to drag down the cable-equipment supplier's results.
Rolling Meadows, Ill.-based Antec warned last week that it
doesn't expect to meet analyst earnings forecasts for 1998. It also formally announced
plans to close its headquarters and to shift jobs to its Atlanta or Englewood, Colo.,
locations this year and next. Antec chief operating officer Robert Stanzione told analysts
last week that the consolidation could lead to about 100 job cuts from its work force of
2,600, a spokesman said.
Antec's share price fell about 13 percent, from $12.06 to
$10.44, on the news.
An Antec spokesman had said previously that the company was
weighing the impact of the move, which would affect 120 headquarters employees. Some key
executives, including executive vice president Gordon Halverson, have already moved.
Senior vice president of administration James Bauer said
last week that the review uncovered areas where jobs could be consolidated or eliminated.
Two Antec facilities in Atlanta are going to be consolidated, and some international
operating and administrative functions in Miami and Chicago will shift to Atlanta.
Bauer said most headquarters employees are still expected
to shift to Atlanta.
Antec expects to take a charge of $10 million to $12
million in the first quarter for moving and severance costs. It expects the consolidation
to save about $10 million per year in operating expenses, but not until next year.
Antec said last week that it lost $4.3 million, or 11 cents
per share of stock, in the fourth quarter, compared with net income of $1.8 million (4
cents) and $140.7 million in revenue in the same period a year ago.
For the year, Antec had $480.1 million in sales and a loss
of $21.4 million (55 cents), including a $28 million pretax charge in the first quarter
connected with its acquisition of TSX Corp. Without the charge, the company's 1997 loss
was $3.6 million (9 cents).
Antec has cited Asian economic problems and a slowdown in
domestic MSO spending due to the large volume of cable-system swaps, sales and joint
ventures in 1997. The company said analysts had thought that TCI's spending would begin to
pick up in the first quarter of 1998, but Antec doesn't think that will happen soon.
Antec's TCI sales amounted to about $46 million last year, down from $148 million in 1996.
Stanzione said in a statement that Antec is 'taking steps
to quickly return the company to profitability in the first half of 1998 and to accelerate
the company toward strong
profitability in the second half of 1998.'