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SCIENTIFIC-ATLANTA REPORTS SECOND QUARTER RESULTS

 ATLANTA, Jan. 28 /PRNewswire/ -- Scientific-Atlanta, Inc. (NYSE: SFA), today reported that worldwide sales for the second quarter ended Jan. 1, 1993, were $186.6 million, up 40 percent from last year's sales of $133.5 million.
 Net earnings were $1.4 million ($0.04 per share) compared with earnings of $2.2 million ($0.06 per share) in the same quarter a year ago. New orders of $207.2 million were up 52 percent from last year. Order backlog was $233.0 million, up $19.9 million from last quarter.
 Sales of $357.8 million and earnings of $8.2 million ($0.23 per share) for the six-month period compared to sales of $261.5 million and earnings of $4.5 million ($0.13 per share) for the same period a year ago. New orders were $358.9 million, up 39 percent from $258.8 million in the comparable six-month period of the prior year.
 Although sales were at a record level for the quarter, net earnings were negatively impacted by higher than anticipated launch costs associated with the company's digital video compression product line. Charges absorbed in the quarter to recognize these costs amounted to $7.5 million, or $0.15 per share. The company considers this a strategic investment to protect its long-term position in the digital video compression marketplace. Efforts are ongoing to reduce compression product costs and the company expects margins to reflect these improvements over the next several quarters. The company is fully committed with this launch to the digital video compression marketplace and is confident that its technology advances represent major medium- and long-term opportunities.
 "Although our results for the second quarter are disappointing because of these higher-than-anticipated launch costs, we are pleased to put this initial expense behind us and we expect to see increased Scientific-Atlanta profitability in the second half. Our long-term fundamentals are favorable," said James V. Napier, chairman and CEO. "We have already begun to deploy compression hardware, and we are convinced that our strategy of an accelerated early entry into this market will provide profitable new opportunities for expanding our business.
 "We achieved record Broadband bookings and sales for the quarter as cable industry capital spending continued its upward trend from the depressed levels of recent years," Napier continued. "We are pleased at the momentum in our businesses, although price competition will continue to adversely affect margins."
 Other announcements made during the quarter included a three-for-two stock split to shareholders of record Dec. 2, 1992, a 13 percent increase in the quarterly cash dividend and a dividend reinvestment plan.
 In December the company announced the appointment of James V. Napier as chairman and CEO and the selection of Jay Levergood as president of the Broadband Communications Group. Earlier, the company announced the appointment of Kenneth V. Jaeggi as chief financial officer.
 Communications
 The recovery in capital spending by the cable industry continued during the quarter as cable operators spent more on equipment that will allow them to offer future new services such as digital video compression. Broadband's bookings and sales were at record levels aided by strength in sales of distribution electronics and the continued expansion of international activities.
 The new Model 8600X home communications terminal was introduced during the quarter, with shipments scheduled to begin next fall. As anticipated, sales of Digital Music Express (DMXTM) audio equipment declined following operators' attainment of inventory levels necessary for the rollout of the service. Lower volumes are expected to continue until current inventory is absorbed. The recent launch of the DMX service in Europe is expected to stimulate new growth in areas for the service.
 The company announced an agreement to acquire Nexus Engineering Corporation of Vancouver, B.C., which will establish Scientific- Atlanta's presence in the international SMATV (satellite master antenna television) market as well as provide new distribution channels for its digital video compression products in key areas abroad. The international SMATV market is expected to grow as U.S. programmers accelerate their moves abroad.
 Network Systems volumes were strong during the quarter with improved sales over the prior quarter and year to year. The company announced the introduction of a new 16-meter digital earth station system to serve as an international telecommunications gateway, complementing its existing 18-meter offering. A new mobile satellite communications terminal for maritime use was also introduced for use by cruise ships, ferry boats and naval vessels as well as oil platforms, and the company announced that Thai Skycom Ltd. (TSL), a common carrier based in Bangkok, purchased a very small aperture terminal (VSAT) network. TSL will offer satellite-based data, voice, fax and video communications services to business and governments throughout the Asia-Pacific region.
 Instrumentation
 Instrumentation operating profits were ahead of the previous year on slightly higher sales. Bookings were strong highlighted by a $21.5 million subcontract award to provide equipment for the U.S. Navy's AN/SQQ-89 surface ship combat system and the systems on-board trainer. The contract also includes long-term options to support most U.S. Navy anti-submarine combat ships.
 During the quarter Scientific-Atlanta and Motorola Inc. (NYSE: MOT), entered into a strategic business relationship aimed at producing earth terminals for the IRIDIUMTM/SM global communications program. The first satellites are planned for launch in 1996 with the full system operational by 1998.
 Scientific-Atlanta, Inc. is a world leader in broadband communications systems, cable television electronics, satellite-based communications networks and instrumentation for industrial, telecommunications and government applications.
 SCIENTIFIC-ATLANTA, INC.
 (IN MILLIONS, EXCEPT PER SHARE DATA)
 (UNAUDITED)
 Three Months Ended
 Jan. 1 Dec. 27
 1993 1991
 SALES $186.6 133.5
 COSTS AND EXPENSES
 Cost of sales 142.6 93.8
 Sales and administrative 28.1 25.0
 Research and development 15.2 13.0
 Interest expense .2 .1
 Interest (income) (.9) (1.2)
 Other (income) expense (.5) (.1)
 Total costs and expenses 184.7 130.6
 EARNINGS BEFORE
 INCOME TAXES 1.9 2.9
 PROVISION FOR
 INCOME TAXES .5 .7
 NET EARNINGS $1.4 $2.2
 EARNINGS PER COMMON
 SHARE AND COMMON
 EQUIVALENT SHARE $0.04 $0.06
 WEIGHTED AVERAGE
 NUMBER OF COMMON
 SHARES AND COMMON
 EQUIVALENT SHARES
 OUTSTANDING 37.2 34.2
 NEW ORDERS RECEIVED $207.2 $136.0
 Six Months Ended
 Jan. 1 Dec. 27
 1993 1991
 SALES $357.8 $261.5
 COSTS AND EXPENSES
 Cost of sales 265.8 183.5
 Sales and administrative 53.8 50.4
 Research and development 29.2 24.6
 Interest expense .4 .2
 Interest (income) (1.6) (2.6)
 Other (income) expense (.7) (.6)
 Total costs and expenses 346.9 255.5
 EARNINGS BEFORE
 INCOME TAXES 10.9 x,Da PROVISION FO


R
 INCOME TAXES 2.7 1.5
 NET EARNINGS $8.2 $4.5
 EARNINGS PER COMMON
 SHARE AND COMMON
 EQUIVALENT SHARE $0.23 $0.13
 WEIGHTED AVERAGE
 NUMBER OF COMMON
 SHARES AND COMMON
 EQUIVALENT SHARES
 OUTSTANDING 36.9 34.1
 NEW ORDERS RECEIVED $358.9 $258.8
 Share data has been restated to reflect the 3-for-2 stock split effected as a dividend issued in December 1992.
 -0- 1/28/93
 /CONTACT: Robert S. Meyers, vice president - corporate communications of Scientific-Atlanta, 404-903-4608/
 (SFA MOT)


CO: Scientific Atlanta, Inc. ST: Georgia IN: CPR SU: ERN

RA-BR -- AT018 -- 0425 01/28/93 16:03 EST
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