Surging set-top box sales push Scientific-Atlanta past estimates
By Bloomberg News
July 27, 2000, 3:20 p.m. PT
NORCROSS, Ga.--Scientific-Atlanta, the No. 2 U.S. maker of set-top boxes for cable television, said fiscal fourth-quarter earnings rose 25 percent, more than expected by analysts, on higher sales of the devices.
Profit rose to $59.1 million, or 35 cents a share, in the three months ended July 2, from $47.3 million, or 30 cents, a year earlier. Scientific-Atlanta was expected to earn 27 cents a share, the average estimate of analysts surveyed by First Call/Thomson Financial.
The company has topped profit forecasts for seven consecutive quarters as it adds production capacity to meet the surging demand for set-top boxes. The devices help people receive digital television, which has hundreds of channels, and Internet and telephone service over cable.
Sales rose 56 percent to $552.6 million from $355.2 million a year earlier, helped by a more than fivefold increase in shipments of set-top boxes to 835,000. The Norcross, Ga.-based company was expected to have sales of $475 million and to ship 750,000 TV boxes. |
