GrowthValue, some interesting news out of SFA and GIC,going in opposite directions? GIC is going to surpass earnings expectations,and SFA is going to be 70% short at least,wow.
Thursday October 1, 5:54 pm Eastern Time
Scientific-Atlantaissues Q1 profit warning
ATLANTA, Oct. 1 (Reuters) - Hi-tech communications company Scientific-Atlanta said Thursday it expects its first quarter earnings to fall more than 70 percent short of Wall Street expectations because the weakness in international markets continues to dampen its sales.
The company, which provides broadband and satellite-based video communications systems, projected it would earn between $0.02 to $0.05 per share. Analysts had predicted the company would report a profit of about $0.22 a share, according to First Call Corp., which tracks analysts estimates.
The company said it expects its first quarter sales to be about $257 million, or about 13 percent less than sales of $295 million during the same period a year ago.
The company plans to issue its regular quarterly earnings Oct. 22.
The drop in international sales was due primarily to softness in the company's satellite and transmission businesses, the company said.
International sales were about $54 million, or 21 percent of total sales, compared with $116 million, or 40 percent of total sales, in last year's first quarter.
The company said domestic sales grew by about $24 million or 13 percent over last year but the growth was not sufficient to offset the decline in international sales, the company said.
The company said it expects the softness in its satellite business to continue because of its significant reliance on international markets.
The company's transmission business was hurt by a delay in the issuance of cable licenses in Brazil in Latin America and by other types of delays in Europe.
The company said it will report a bookings increase over last year from a robust North American market with significant increases in digital networks and transmission bookings more than offsetting a decline in satellite bookings.
The company said it remains convinced of opportunity in international markets in the long term and will take ''aggressive measures as appropriate'' in regards to international business strategies.
General Instrument Expects to Report Another Record Quarter
Expected Results Include Orders of $575 Million, Revenue of $518 Million, Operating Margin Exceeding 11%, and Earnings per Share of $0.21 - $0.22
Ships Two-Millionth Digital Set-Top
Stock Repurchase Exceeds 3.7 Million Shares
HORSHAM, Pa., Oct. 2 /PRNewswire/ -- General Instrument Corporation (NYSE: GIC - news) today announced that it expects to achieve record orders, revenue, operating margin and earnings per share for the third quarter ended September 30, 1998. Earnings per share are expected to be in the range of $0.21 - $0.22, compared to $0.17 per pro forma share in the third quarter of 1997'. Net income is expected to be in the range of $36 - $39 million, compared to pro forma net income of $25 million for the third quarter of 1997.
Operating income is expected to be in the range of $57 - $60 million in the third quarter, compared to operating income of $37 million for the same period last year. Based upon this operating income performance, operating margins are expected to exceed 11% in the third quarter of 1998, compared to 7.9% in last year's third quarter and 10.1% for the second quarter of 1998.
Sales are expected to be approximately $518 million for the quarter, compared to $465 million in the third quarter of 1997 and $489 million for the second quarter of 1998. Record revenue in the quarter was driven by strong shipments of interactive digital cable TV systems, offset by anticipated international and analog sales decline. Transmission sales grew sequentially, in line with expectations, while sales of satellite products were slightly ahead of expectations.
''In response to stronger than expected consumer demand for digital services, General Instrument shipped its two-millionth interactive set-top terminal during the quarter and expanded its digital base to 89 different customers,'' said Edward D. Breen, Chairman and CEO. ''Initial units of the new DCT 2000 set-top terminal were produced in our Taiwan factory and are currently in test in GI and customer system integration labs. We expect to begin high volume production of the DCT 2000 during the current month.''
Well, on the issue of LUcy against HLIT. HLIT has been around for over a decade producing some of the highest quality externally modulated Yag laser subsystems. HLIT's great strength is their engineering prowess,and the quality and reliability of the products they have produced for over a decade. They do not possess any significant patents that I know of,and are working with Thomson RCA and Panasonic for retail delivery of cable modems for use with HLIT's system. They are going the other way,showing interoperability with all major silicon PHY and MAC chip producers,including BRCM,Libit/ADI,STII. They have shown interoperability with Toshiba's HFC system also.The design of their system makes it a naturally interoperable system with any long haul DWDM vendor. Their strenght is not in the patents,but in their engineering. Most people that work as engineers at HLIT have PHD's. I had at one time wanted to work for them,I talked with them,and they said they would not even consider me until I had at least a Master's in Engineering in Fiber Optics. They have over 100 of the top fiber optic engineers in the cable field,and over 300 employees.
ORTL is also a good company,they have also been around for about 10 years. They are not at the level of engineering of Yag Lasers of HLIT,but they are branching in a different direction,and a very interesting one,to linear laser connectors for wireless networks. And that segment of ORTL's business is exploding,as other areas fall.
Tim |
