Stock in Scientific-Atlanta Inc. plummeted 35 percent Friday to close at
$22.80 per share after the manufacturer reported lower fourth-quarter bookings
and set-top-box shipments Thursday afternoon.
S-A's shares had been holding their own while scores of other tech companies
saw their stocks take steep nosedives. The vendor blamed the drop on the soft
economic climate and reduced digital marketing efforts by cable operators during
S-A said it shipped 1.25 million set-tops during the quarter, down from the
1.4 million units it shipped during the previous period. S-A shipped 4.8 million
'Explorer' set-tops during fiscal-year 2001, extending that total to 7 million.
For the fourth quarter, S-A's bookings dropped 21 percent to $507 million versus
the year-ago quarter, but sales rose 12 percent to $616.6 million.
Although set-tops shipments were down, S-A started volume shipments of its
'WebSTAR' cable modem in the fourth quarter, delivering 150,000 units to
operators in North America, Latin America, Europe and Asia.
Despite some lower numbers in the fourth quarter, S-A remained upbeat about
its future prospects.
'The current flattening of demand for our subscriber and transmission
products notwithstanding, we expect that the upcoming mass deployment of
interactive applications will create new opportunities for our customers and, as
a result, new opportunities for the growth of Scientific-Atlanta,' S-A chairman,
president and CEO James F. McDonald said in a press