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ADELPHIA
Adelphia Communications' equipment vendors are bracing for the ripple effects of the MSO's inability to pay its debts-in the millions and growing.
Some hardware vendors have already tried to prepare their own investors for the fallout from Adelphia's financial woes by warning of future revenue shortfalls.
Last week CommScope CEO Frank Drendel told analysts that the cable/fiber optic provider expects to see a dip in its secondquarter revenues, due in part to the Adelphia mess.
Adelphia represents about 11% of CommScope's total sales, he told analysts. Rather than the $160 million the company expected to make during the quarter, CommScope is now looking at revenues of between $150 million and $160 million.
Earlier this month SeaChange International recorded a $500,000 provision to its "doubtful accounts" to offset outstanding balances owed by Adelphia. The MSO accounted for 8% of Arris Group's 2001 revenues and 9% of the company's revenues in the first quarter of this year, according to spokesman Jim Bauer. Adelphia, which is Arris's third-largest client,...