Broadband and high speed data provider
was downgraded from buy to neutral by SunTrust Robinson Humphrey after the company said fourth quarter earnings will be lower, citing "uncertainties" surrounding the pending Comcast/AT&T Broadband merger. Shares were down 26%.
Recently, shares were at $1.92, down 70 cents, on the news.
"In light of possible disruptions in purchasing by the new Comcast/AT&T Broadband, we anticipate that revenues and earnings for the fourth quarter of 2002 and into 2003 will be significantly lower," the company said in a press release, but it did not provide specific forecasts. The company does anticipate a positive cash flow.
On Thursday, the Dulth, Ga.-based company announced its third-quarter earnings. After certain items, the company earned $3.5 million, or 4 cents a share, compared with a loss of $40.7 million, or 50 cents a share, a year earlier.
Before certain items, the company lost $100,000, or breakeven on a per-share basis, compared with earnings of $800,000, or a penny a share, a year ago. On a "cash" basis, the company earned 10 cents a share, or 15 cents a share excluding items.
Revenue was $197.6 million, compared with $194.1 million a year ago. The company said cable telephony and data products were strong.