Adelphia Communications Corp.'s misery has some company these days in one of
its primary equipment and services vendors, C-COR.net Corp.
The State College, Pa.-based broadband-communications-systems provider has
announced that it does not anticipate generating any more revenues in the near
term from the MSO.
As a result, net sales for the fourth quarter ending June 28 will drop to
between $60 million and $65 million, with pro forma earnings per share coming in
between 2 cents and 4 cents. That compares to $77.2 million in sales posted in
the third quarter.
That excludes $1.9 million in continuing amortization of goodwill and other
intangibles; a potential loss associated with a project in Argentina, now
totaling some $565,000 based on the current exchange rate; and $10 million to
$15 million in noncash impairment charges stemming from C-COR.net acquisitions
in 2001. That could erode fourth-quarter earnings to a loss of between 18 cents
and 32 cents per share.
On top of that, C-COR.net has about $42 million in accounts receivable
outstanding from Adelphia.
At the close of the fourth quarter, the company will decide whether to record
part or all of that amount as an allowance, according to a prepared statement
If C-COR.net does take that hit, it will cut earnings by about 73 cents per