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AT&T trims earnings outlook
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August 29, 2000: 6:29 a.m. ET
Consolidation of Excite@Home results into AT&T to cut 3Q by 5 cents a share
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NEW YORK (CNNfn) - AT&T Corp. Monday trimmed the outlook for its third quarter profits by five cents a share, after announcing it plans to fold the results of Internet access provider Excite@Home into its own reports.
AT&T (T: Research, Estimates), which has voting control of Redwood City, Calif.-based Excite@Home, said it has adjusted its third quarter operational earnings per share target to 35-to-38 cents a share from 40-to-43 cents a share.
 Basking Ridge, N.J.-based AT&T also restated operational earnings per share for the first and second quarters to 48 cents and 53 cents, respectively.
In March, AT&T increased its ownership stake in Excite@Home Inc. (ATHM: Research, Estimates) and agreed to extend its distribution agreements with the Internet access provider, accelerating the company's push into the high-speed Internet market.
AT&T at that time said it would absorb Excite@Home's results, and anticipated the 5-cent-a-share dip in operational profits. But on Monday it said the event would occur in the third quarter rather than the fourth quarter, as originally expected. AT&T in March predicted that the addition of Excite@Home's financial results would result in an additional $400 million in revenue this year.
AT&T will have approximately 25 percent of the economic interest in Excite@Home and 74 percent of the voting interest, as compared to the 24 percent economic interest and 56 percent voting interest AT&T had previously.
The two companies on Monday also announced shareholder approval for Excite@Home's new board of directors and governance structure, and completion of extension contracts with Cox Communications and Comcast.
Excite@Home's new board will consist of six members designated by AT&T, four independent members and one management representative. George Bell, chairman and CEO of Excite@Home will chair the board.
Excite@Home will continue to report fiscal results independently.
AT&T stock fell 81 cents to $30.25 Monday, while Excite@Home rose 12 cents to $13.94. 
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Excite@Home
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