MSO quarterly results may be looking good, but equipment vendors are getting
pounded.
C-COR.net Corp. said third-quarter-2003 revenue for the period ending March
31 was $50.1 million, a 35 percent drop over the year-earlier period's $77.2
million.
The company reported a net loss of $115.3 million due to three extraordinary
items, compared with net income of $109,000 in the year-earlier period. The
items included a $46.9 million charge to recognize a valuation allowance for
deferred-tax assets, a $40.9 million charge for impairment of goodwill and an
$18.1 million charge to increase reserves for obsolete and slow-moving
inventory.
C-COR.net doesn't see much improvement ahead, projecting revenue of between
$48 million and $53 million in the current quarter.
Arris took a bigger revenue slide, posting revenue of $91 million in
first-quarter 2003 compared with $172 million in first-quarter 2002 and down
sequentially from fourth-quarter 2002's $122 million.
The revenue slide sent operating profit from $2.7 million last year to a loss
of $21.5 million in first-quarter 2003.
Arris had prewarned Wall Street several weeks ago that certain first-quarter
shipments would be delayed and revenues would be down. Its broadband-product
revenue, for instance, fell from $79 million in fourth-quarter 2002 to $62
million in first-quarter 2003.
"Although we are disappointed by the confluence of events that delayed
product shipments at the end of the first quarter and the continuing tight
capital-spending environment that our customers are enduring, we were pleased
with the growing acceptance of our next-generation high-speed-data products,"
Arris president and CEO Bob Stanzione said in a prepared
statement.
