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S-A: Outlook Not Great

By Matt Stump -- Multichannel News, 1/16/2003 12:58:00 PM

Scientific-Atlanta Inc. posted second-quarter earnings of $15 million on revenue of $352 million -- figures that were better sequentially but worse than the year-earlier period.

One year ago, S-A posted $39 million in earnings on revenue of $418 million. But sequentially, S-A sales were $312 million in its first quarter.

Chairman and CEO Jim McDonald said revenue will remain under pressure because MSOs are driving toward free cash flow and, thus, keeping capital-expenditure costs to a minimum.

S-A said it shipped 804,000 "Explorer" set-tops during the quarter and 1,700 "MultiQAM" modulators. The company said it shipped 189,000 "WebStar" cable modems in the quarter.

McDonald also said S-A shipped 43,000 high-definition-TV set-top-boxes and 31,000 digital-video-recorder-related set-tops.

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