Scientific-Atlanta Falls on Concern About Shipments
Norcross, Georgia, March 5 (Bloomberg) -- Scientific-Atlanta Inc. shares fell 11 percent on investor concern that the No. 2 maker of television set-top boxes would ship fewer units than in the previous quarter.
Scientific-Atlanta fell 3 1/4 to 27 1/8 in trading of 4.5 million shares, more than five times its three-month daily average. Earlier, the shares touched 24 1/2.
Time Warner Inc., the largest digital customer of the Norcross, Georgia-based company, has installed only 10,000 boxes from the 200,000 it's purchased so far, indicating demand may slow, said Donaldson Lufkin & Jenrette analyst Eric Buck, who attended a company meeting with analysts yesterday.
''We believe the number (of units shipped in the fiscal third quarter) could be 30 percent or more below the 126,000 units shipped during the December quarter,'' Buck said in a note released today that reaffirms a ''market perform'' rating on the stock. ''Such a performance would likely shake some investor confidence in the timing of SFA's digital ramp.''
17:21:49 03/05/1999 |
