Another Adelphia vendor expects to take it on the chin
Beleaguered Adelphia Communications Corp. is warning vendors that it has no plans to place new orders for products in the near future. The news leaves ARRIS no choice but to lower its second quarter guidance.
Last month, ARRIS posted a 4 percent sequential gain in revenue of $191.6 million in the first quarter. The company reported a loss of $1.9 million, or 2 cents a share. Sales of broadband products, including cable telephony and Internet access, were $114.2 million. At the time, the company forecast second quarter revenue would be in the range of $195 million to $205 million, with EPS falling in the range of 4 cents to 6 cents per diluted share.
In light of Adelphia's announcement, ARRIS now expects Q2 revenue to be between $185 million and $195 million, with EPS in the range of 1 cent to 4 cents a share. Adelphia accounts for 8 percent of ARRIS' total revenue in calendar 2001 and 9 percent in the first quarter of 2002, the company said in a statement.
ARRIS stems from Antec Inc.'s merger last year with ARRIS Interactive. Nortel Networks Inc. owns 49 percent. ARRIS provides broadband local access networks and high-speed data and telephony systems to enable the delivery of voice, video and data.
Yesterday, CED Broadband Direct reported that C-COR.net Inc. lowered its fourth quarter outlook, and said it does not expect to generate any revenue from Adelphia in the near-term.