Blaming the poor telecommunications economy and the travails at Adelphia
Communications Corp., fiber-optic-gear manufacturer CommScope Inc. announced
that it's laying off 250 employees, or 8 percent of its work force.
'The telecommunications
industry continues to face significant challenges including capital-spending constraints,
delayed network build-outs, an uncertain economic environment, bankruptcies and reorganizations,' chairman and
CEO Frank Drendel said in a prepared statement.
'Our visibility remains limited, and we have grown more cautious about our
near-term outlook.'
CommScope said second-quarter sales dropped
from $199.9 million last year to $155 million this year.
Net loss for the quarter was $42.5 million compared to net income of $6
million in last year's second quarter.
The second-quarter results included a $12.9 million
after-tax charge related to the write-off of contracts with Adelphia and $34.9
million in after-tax equity losses in OFS BrightWave Carrollton, a company in
which CommScope has an 18 percent ownership stake.
