Yeah, it sure is a "positive mention" in the fish wrapper.
here's part of the interview:
Q: What's next?
A: Scientific-Atlanta is a leading supplier of terminals, networks and systems
to receive, or deliver, broad-band communications, satellite-based video and
digital-based interactive services, including e-mail, video on demand and
access to the Internet. The company expects to ship 500,000 of its Explorer
2000 digital interactive set-top boxes in the year to June 30, 1999, and one
million in fiscal 2000. We see earnings rising 30%-40% next year and the
stock price doubling over the next 12-18 months from 33 recently. From
$1.02 a share in fiscal 1998, we see SFA's earnings rising to $1.50 this year
and something like $2 next year.
Q: Several companies produce electronic devices that sit atop TV sets
and provide cable and other services. Who's SFA's biggest competitor?
A: General Instrument is one. I think Scientific-Atlanta's technology may be
superior to theirs because it offers a whole software system that gives users
much more flexibility and greater utilization of communications systems. SFA
does buy some components, but most of its technology has been developed in
its own research labs.
Q: What does this Explorer 2000 cost, and how quickly will its price
come down?
A: It now costs $350 and includes a link to SFA's digital networks. I don't
know when or how much its price will decline, but there are some clues. A
low-end analog box without network links now costs about $100-$110, and
a high-end device now goes for $150-$180. I believe the price of the
Explorer 2000 in time will drop to $150-$180.
Q: Will Microsoft try to dominate the set-top-box business?
A: I don't think so. I believe Microsoft will remain pretty much in the software
end of this sector, leaving the set-top devices themselves to companies like
Scientific-Atlanta. Besides, SFA's advantage here is the fact that access to the
Internet and other communications services will be a lot faster using SFA's
system than trying to do it through a computer. |
