Spending Cuts Hit Scientific-Atlanta

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Days after Motorola reported lower sales in its broadband division,
Scientific-Atlanta Inc. posted similar numbers, with year over year revenue
dropping 15 percent, from $442 million to $383 million, while quarter earnings
dropped 39 percent, from $43.8 million to $26.8 million.

CEO Jim McDonald called the quarter mixed, with weaknesses in the
transmission market offset by better numbers in subscriber products.

Transmisson product sales of $90.6 million dropped 38 percent over last year,
while subscriber product sales of $269.3 million represented a drop of only four
percent, year over year.

Sequentially, subscriber products sales rose 18 percent, S-A said.

The company said its shipped 929,999 Explorer set-tops and 171,000 WebStar
cable modems in the quarter.

Of those Explorer set-tops sold, 106,000 were the Explorer 8000 box and
54,000 HD set-tops. S-A said half the set-tops shipped either had HD, DVR of
DOCSIS cable modem capabilities.

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