To: Eric Jacobson who wrote (2596 ) 1/8/1999 6:32:00 AM From: Mark Oliver Respond to of 4134
Scientific-Atlanta Expects to Exceed Wall Street Expectations for Second Quarter PR Newswire - January 07, 1999 16:40 ATLANTA, Jan. 7 /PRNewswire/ -- Scientific-Atlanta said today that it expects that its revenues for the second quarter will be approximately $308 million compared to the previous year's second quarter revenues of $294.5 million and current average Wall Street expectations of approximately $262 million. The improvement is due primarily to higher than anticipated domestic sales of Explorer(R) 2000 interactive digital set-tops and network transmission products as US cable operators continued to upgrade their networks. The company shipped approximately 126,000 Explorer 2000 digital set-tops in the second quarter, which exceeded earlier estimates. As a result of the increased revenue, income from operations, which has not yet been finally determined, will significantly exceed current analyst expectations, although margins are expected to be somewhat impacted by the higher percentage of digital set-tops in the product mix. As previously announced, the company sold a portion of its shares of Broadcom Corp. stock during the quarter, and as required by generally accepted accounting principles, marked to market its remaining Broadcom investment at the end of the quarter. The net effect of these transactions will add approximately $0.09 per share to the company's reported results for the second quarter. Scientific-Atlanta President and CEO James F. McDonald said, "We are pleased that the commercial phase of digital interactive services has begun and are proud to be able to offer the industry's most advanced digital interactive technology which will change the way people watch television while at the same time generate significant new revenue opportunities for our customers." Scientific-Atlanta's regular quarterly earnings release will be issued January 28, 1999. "Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, may be included in this news release. A variety of factors could cause the Company's actual results to differ from the anticipated results expressed in such forward-looking statements. Investors are referred to the Company's Cautionary Statements (Exhibit 99 to the Company's most recent Form 10-Q), which statements are incorporated into this news release by reference. Scientific-Atlanta, Inc. (NYSE: SFA) (http://www.sciatl.com) is a leading supplier of broadband communications systems, satellite-based video, voice and data communications networks and worldwide customer service and support. SOURCE Scientific-Atlanta, Inc. /CONTACT: Bob Meyers, Scientific-Atlanta, 770-903-4608 or email: robert.meyers@sciatl.com/ /Web site: sciatl.com