After weeks of speculation, beleaguered Adelphia Communications Corp. has finally sought shelter from the economic telecom storm under the protective shroud of a Chapter 11 filing. Adelphia confirmed late Tuesday that it and 200 of its subsidiaries had filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.
In the immortal words of Ricky Ricardo, "(WorldCom) you got a lot of 'splainin' to do!" WorldCom Inc. has admitted that it overstated nearly $4 billion in expenses, raising fears that it may be the latest telecom giant to file for bankruptcy. The company says it will restate its financial statements for 2001 and the first quarter 2002 after an internal audit revealed the company had reported $3.
Copyright 2002 / Los Angeles Times Los Angeles Times…06/25/2002 From LexisNexis From Bloomberg News WorldCom Inc. stock plunged to a 12-year low Monday after Salomon Smith Barney analyst Jack Grubman, once one of the company's biggest Wall Street advocates, recommended investors avoid shares of the second-largest U.
Copyright 2002 Knight Ridder/Tribune Business News Copyright 2002 Press-Telegram Press-Telegram…06/25/2002 From LexisNexis Verizon Communications on Monday withdrew a proposal to sell its cable television franchise to Adelphia Communications Corp., citing ongoing financial woes within Adelphia.
Optical networking company Tellium Inc. will trim its work force by 200 employees by the end of the month. The compnay blames lagging customer demand and the ongoing deterioration in the telecom sector for the move. Tellium expects to take a one-time restructuring charge of between $7 million and $10 million in the June quarter.
Video compression technology provider DivXNetworks Inc. is moving full speed ahead with plans to deploy its DivX suite of video compression technology. The latest: the company has inked a licensing deal with Wellspring Media Inc. As part of the deal, Wellspring will license the DivX Open Video System to rent downloads of eight full-length films to users of its Web site, www.
The deal it is a changin', the Time Warner Cable-Advance/Newhouse Communications deal that is. The companies have agreed to transfer 2.1 million TWC subscribers to A/N's control, and transfer A/N's Road Runner stake to TWC. The companies have been negotiating the restructuring deal for several months now, which stemmed from A/N's desire to resume operating some of the cable systems.
In a cash and stock deal, Globespan Virata has sold its MPEG video and audio compression and decompression product business to Conexant Systems Inc. The sale is part of the DSL equipment provider's divestiture strategy. For its part, Conexant will fork over $21 million in cash and 1.25 million shares of common stock.
Copyright 2002 The Atlanta Constitution The Atlanta Journal and Constitution…06/24/2002 From LexisNexis WASHINGTON — For high-speed Internet users, a new lifestyle may be just a few clicks away. A study released today by the Pew Internet and American Life Project found that people changed their activities both on and off the computer when they acquired broadband service.
Copyright 2002 Reed Elsevier Inc. Daily Variety…06/24/2002 From LexisNexis NEW YORK —Adelphia Communications Corp. is said to have lined up $1.5 billion in financing through a consortium of banks, much-needed cash that will keep its businesses operating while it restructures after a Chapter 11 filing expected today.
Looking to save more than $10.2 million annually, webcasting and digital media service provider Loudeye Corp. is reducing its employee roster by 37 percent. The company has a goal of reaching operating cash flow breakeven by the end of the year, and said the cuts were necessary to stay on target. Once the restructuring is complete, the company expects to have 130 full-time employees in Seattle,...
Building on its three-year relationship with Motorola Inc., WorldGate Communications Inc. has signed a multi-year deal with Motorola's Horizon Developer Program. As part of this latest deal, Motorola and WorldGate will continue to work together to develop WorldGate's interactive television service on Motorola's advanced digital set-top boxes, including the DCT1000, DCT2000, DCT2500 and the DCT5...
MSOs are increasingly interested in developing strategies for offering broadband connections to small- and medium-sized businesses that fall into their network footprints. Access technologies are currently being trialed in MSO labs, and a new strategic alliance between platform provider Narad Networks and IBM Corp.
Gemstar-TV Guide International Inc. has been on the warpath for some time now, claiming that its patent is being infringed on. The interactive programming guide developer suffered a setback late Friday, however, when a judge ruled against it. An International Trade Commission judge has ruled that Gemstar competitors did not engage in unfair trade practices with regards to Gemstar's patented IPGs.
Terayon Communications Systems Inc.'s shares were down more than 40 percent in early trading today, following news that the company more than halved its second-quarter outlook. The broadband networking gear provider slashed its Q2 revenue outlook to $21 million and $30 million, down from an earlier forecast of as much as $60 million.