Horsham, Pa. -- General Instrument Corp. said last Thursday
that its fourth-quarter sales fell 13 percent, to $441 million from $507 million a year
earlier, as new digital equipment sales weren't enough to offset declines in
GI's basic analog business.
Orders, though, rose 26 percent, to $479 million in the
quarter from $381 million a year ago.
GI said its basic analog-cable and
network-satellite-systems sales fell 44 percent in the quarter. Digital and
advanced-analog cable-equipment orders rose a combined 107 percent, though.
Operating income, before restructuring and other charges,
fell to $22 million in the fourth quarter from a pro forma $38 million in the year-ago
period, due to lower sales and to more money being pumped into the NextLevel
Communications advanced telephony business. GI has placed that business into a limited
Net income, before restructuring and other charges, was $15
million, or 10 cents per share of stock, compared with $23 million (15 cents) of pro forma
net income in the fourth quarter of 1996. Including those charges, GI had a net loss of
$46 million (31 cents per share), compared with $31 million (21 cents) a year earlier.
The 1997 fourth quarter included $61 million, or 41 cents
per share, of after-tax charges, compared with $54 million (36 cents) a year ago. GI has
said that it also expects to record between $70 million and $85 million (43 cents and 52
cents per share) of charges in the first quarter.
For the full year, sales were flat at $1.8 billion.
Excluding charges, pro forma operating income was $108 million in 1997, up from $98
million the year earlier, and pro forma net income for 1997 was $67 million, or 45 cents
per share, compared with $57 million (38 cents) on a pro forma basis in 1996.