Scientific-Atlanta, Adelphia reach terms

By SUSAN RUSH
From CED Broadband Direct, August 19, 2002

The companies have signed on the dotted line, and Scientific-Atlanta Inc. and Adelphia Communications Corp. will continue to do business in the future.

The agreement calls for the set-top box maker to continue to supply bankrupt Adelphia with products and services. The announcement formalizes a verbal agreement first announced on July 18 between the two companies.

Scientific-Atlanta and Adelphia have had a relationship for more than 20 years now, and will continue to work together despite the fact that Scientific-Atlanta was forced to debook $199.8 million in orders from Adelphia. Sales slipped 37 percent during the fourth quarter at Scientific-Atlanta, with part of the slide stemming from Adelphia's financial troubles.

On Friday, Scientific-Atlanta announced plans to reduce its work force by 6 percent. The restructuring will translate to an annual $40 million savings, beginning in the second half of fiscal 2003, the company said.