HICKORY, N.C. …Â Fiber-optic and coaxial cable manufacturer CommScope (NYSE: CTV) plans to lay off about 250 employees, or 8 percent of its work force, in the next two months following continued losses.
“The telecommunications industry continues to face significant challenges, including capital spending constraints, delayed network buildouts, an uncertain economic environment, bankruptcies and reorganizations. Our visibility remains limited, and we have grown more cautious about our near-term outlook,” Chairman and Chief Executive Frank M. Drendel said in a statement. “We intend to continue taking appropriate actions to balance our work force with expected demand while maintaining a strong competitive position.”
CommScope lost $42.5 million, or 69 cents per share, in the second quarter on $155 million in revenue. That compares with earnings of $6 million on $199.9 million in revenue during the same period a year ago.
The most recent quarter included after-tax charges of $12.9 million related to the writeoff of receivables from bankrupt Adelphia Communications and $34.9 million in losses incurred by OFS BrightWave, a joint venture between CommScope and Furukawa Electric in which CommScope acquired a minority interest in late 2001.