Harmonic (Nasdaq: HLIT) confirmed Monday that it too would be hit by the decision of AT&T's (NYSE: T) Broadband division to stop accepting shipments from suppliers. Revenue is expected to be as much as $3 million lower for the quarter.
AT&T Broadband's decision to halt delivery of pending orders caused several key suppliers for its high-speed Internet access service to plummet Friday. CommScope Inc. (NYSE: CTV), unchanged at 18.13, Antec Corp. (Nasdaq: ANTC), down 0.38 to 9.06, C-COR.net (Nasdaq: CCBL), up 0.5 to 10.13, and Scientific-Atlanta Inc. (NYSE: SFA), unchanged at 49.19, were mixed in early trading Monday. AT&T was up 0.25 to 19.56.
Shares in Harmonic, which makes fiber optic, digital video and IP data delivery , were down 1.31 to 10.13. Harmonic had already drifted lower in November as the company restated results.
Harmonic said its revenues for the current quarter will be reduced by about $2 million to $3 million because of AT&T Broadband's decision not to accept deliveries of its products for the balance of the fourth quarter, along with those of other suppliers.
On Friday, AT&T Broadband spokesman Steve Lang said the request from its high-speed Internet division was "absolutely not'' the result of reduced demand but a normal, seasonal budget decision. The company already had enough supply of components on hand to last through the end of the year without taking additional deliveries, he said.
Antec, which makes optical transmission and cable maintenance products, said AT&T's action would hurt its fourth-quarter earnings, but said that it was too early to determine the full financial impact.
CommScope, maker of equipment used for high-speed telecommunications networks, said it stood by fourth-quarter earnings projections despite AT&T's decision. It did lowered its sales and earnings targets for 2001, however, citing a general slowdown in orders. Merrill Lynch downgraded its rating on CommScope to "accumulate" from "buy" for the intermediate term after the AT&T news.
• Antec, Commscope pounded on AT&T delays
• Scientific-Atlanta dinged as AT&T Broadband delays spending
• Harmonic drifts lower following 3Q restatement>