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 ATLANTA, Aug. 14 /PRNewswire/ -- Scientific-Atlanta, Inc. (NYSE: SFA), today reported that sales for the fourth quarter ended June 26, were $172.9 million up 36 percent from last year's sales of $127.0 million.
 Net earnings for the fourth quarter were $7.8 million ($.33 per share). This compared to $1.4 million ($0.06 per share) in the same quarter a year ago before non-recurring charges of $14.0 million for restructuring operations which caused a loss of $8.3 million last year. New orders of $174.0 million were up 43 percent over last year.
 Sales for the fiscal year were $580.8 million, up 18 percent from the prior year. Net earnings of $16.3 million ($.70 per share) compared to earnings of $1.1 million ($.05 per share) in 1991. Earnings for the prior year excluding the restructuring charges were $10.7 million ($.48 per share). Improved Instrumentation results was the major contributor to year-to-year earnings improvements, with increased Broadband sales also contributing in the second half. New orders booked totaled $605.5 million with backlog at fiscal year end of $232.4 million.
 Commenting on the fiscal year results Scientific-Atlanta chairman and CEO William E. Johnson said: "We are pleased with the upward momentum of our results, especially in the second half of the fiscal year. The company enjoyed solid sales increases across many product lines as well as record orders for the quarter and for the fiscal year.
 "In Broadband, key contributors to sales growth were new areas such as international and digital audio. In the more traditional areas of domestic distribution and fiber products, we began to see early indications of renewed spending during the last two quarters. Network Systems international sales showed a healthy increase over last year. We are especially pleased with results in our Instrumentation businesses where performance benefited from ongoing restructuring efforts and exceeded expectations.
 "While we continue to believe that a broad based recovery in the domestic cable market is not fully underway, we are encouraged by the renewal of transmission equipment activity. Fiber optics, distribution, and headend purchases are likely to lead the way as CATV operators upgrade channel capacity in response to market requirements, franchise renewals, and to provide a foundation for future new revenue sources.
 "The development of digital video compression systems -- based on our many years of satellite and broadband transmission leadership -- led our efforts in research and development. We announced the industry's first satellite advertising delivery and insertion system for broadcast stations and cable systems using this exciting new technology. This technology provides for more effective delivery of programming over satellite and through cable systems as well as a wide range of new services.
 "We were pleased to be the first to introduce a new generation of addressable home terminals, or converters, the model 8600 set top terminal, with on-screen and text communication capability. The product has been highly successful in the US and abroad."
 Broadband sales and orders improved significantly from the prior year as cable television systems abroad increased capital spending on new system development and domestic cable operators made initial investments in the Digital Music Express music service. The company announced equipment sales for major cable builds by companies in the UK including Southwestern Bell International Holdings, Inc., and Bradford Cable Communications, Ltd. These and other product wins for the model 8600 and other products in the UK strengthened the company's position as the leading cable equipment supplier in that country. Scientific- Atlanta is also the leading foreign supplier of subscriber equipment in Japan.
 The successful roll out of the 8600 series -- the industry's first home terminal with on-screen features and communications capabilities -- continued in the fourth quarter. The company also began delivery of its first Jerrold and Zenith compatible model 8600s. These units can co- exist in systems utilizing converters of these manufacturers thus permitting smooth change out to Scientific-Atlanta products. For example, Scripps Howard Cable, a major MSO, is in the process of replacing converters across virtually all its systems with the 8600.
 The company's commitment to product and technology leadership was demonstrated by the success of other recently introduced products. The Digital Music Express (DMX) audio programming service continued its successful market introduction. The service provides 30 channels of uninterrupted CD standard music to cable and commercial subscribers. The popularity of the interactive DMX-DJTM two-way hand-held remote which identifies on an LCD display the artist and musical selection being played, has been extremely well received. Cable operators representing approximately 25 million of the nation's 55 million cable subscribers have agreed to market the service.
 Scientific-Atlanta and Mediatech, Inc., announced plans to install the industry's first operational digital video compression satellite TV advertising delivery and insertion system for broadcast stations and cable systems. Mediatech is a leader in national spot advertising distribution. In early 1993 Scientific-Atlanta will deliver an end-to- end digitally compressed satellite system designed to reduce time and costs for TV advertising delivery while increasing picture quality.
 Scientific-Atlanta also began shipments of its 9708 Integrated Receiver Decoder (IRD), making it the first company to deliver a digital compression compatible product. The model 9708 receives and processes todayUs analog satellite video signals and provides business and entertainment television networks with an easy and cost effective migration strategy to digital video compression. The product is compatible with today's analog B-MAC video networks and is upgradeable via a plug in module to digital networks. Customers such as General Electric, Request TV and HBO Ole are among the users of the 9708.
 In another area of leading edge technology, Scientific-Atlanta was the first to demonstrate in cooperation with Cox Enterprises a telephone call over a U.S. cable system. The two companies began joint tests in San Diego, CA of a device, called a cable microcell integrator(CMI), manufactured by Scientific-Atlanta, which allows personal communication networks (PCNs) to be operated through an existing cable television plant. On Feb. 12 Cox Enterprises chairman James Kennedy made the first phone call in the nation over a cable system using a portable hand-held unit, to Alfred Sikes chairman of the Federal Communications Commission. CMIs are small, digital radio transceivers located throughout a cable system to provide high quality portable telephone service.
 The company expanded its lead position in fiber optic technology and sales with the introduction of several new products. Utilizing Scientific-Atlanta's system approach, operators can integrate state of the art fiber optic equipment with their existing coaxial investments, saving thousands of dollars when rebuilding their systems or upgrading services. The company's new 550 single laser fiber optic system, for example, allows local operators cost-effectively to narrowcast programming and advertising to pockets of subscribers as small as 500 homes. In the future the new systems combined with digital compression will allow operators to supply hundreds of channels of video on demand programming.
 Network Systems' orders and sales increased over the prior year. The company continued its highly successful sales efforts in international satellite communications. Among key orders received were those of the national broadcasting services of 11 European Broadcast Union member countries who have ordered Scientific-Atlanta digital/analog television broadcasting earth station systems. More than 90 percent of the EBU member countries that have purchased new digital earth station systems have selected Scientific-Atlanta. In addition, Bright Star Communications, a satellite service provider in the UK, selected Scientific-Atlanta to supply a 9-meter satellite earth station system -- the first major, privately-owned earth station for transatlantic TV transmission to be built in Europe. The national broadcaster in Tunisia purchased a digital television uplink from Scientific-Atlanta to transmit programming to Europe, and SES (Societe Europeenne de Satellites), a private company based in Luxembourg that operates the ASTRA television satellite system, purchased an 11-meter earth station system from Scientific-Atlanta to transmit CNN throughout Europe.
 In Colombia, four Colombian oil companies, including three private entities and one state-owned concern, have joined forces to create a comprehensive satellite communications network to transmit voice and data within the country and internationally using Scientific-Atlanta equipment and expertise.
 The company continued to expand its presence in the market for Intelsat Standard-A digital satellite earth stations. Scientific- Atlanta entered the A-station market two years ago and has rapidly become a major supplier in this international growth area offering a range of options for varying voice, video and data applications. During the reporting period, Iceland and Papua New Guinea purchased 16 meter A-stations to serve as international telecommunications gateways, and in Argentina the company signed a contract to upgrade three existing A-stations.
 In the domestic VSAT arena, Scientific-Atlanta announced that it will provide the A&P national supermarket chain with a private satellite network to manage the data, video and audio communications of more than 500 supermarkets. A&P is the first major national supermarket chain to deploy fully a private satellite network. Other key domestic VSAT wins included a network for the Halliburton, Co., a major diversified oil field services and construction firm. Internationally, the company announced a Panamerican VSAT network for Volkswagen to link more than 1,100 dealers in the U.S., Canada and Mexico and a contract with TV Australia to build a 400 site VSAT network in Indonesia to be used for transmitting meteorological information.
 Scientific-Atlanta continues to maintain its leading position in the radio broadcast industry. IDB Communications, a major satellite services provider to radio networks, expanded its use of Scientific- Atlanta's SEDAT(TM) compressed digital audio system with the purchase of new uplink and downlink products. Under a contract with National Public Radio (NPR), Scientific-Atlanta will design and manufacture more than 500 satellite downconverters. The company is providing Associated Press with a new uplink facility in Kansas City for satellite delivery of newswire, photo and radio network services.
 Following the close of the fourth quarter, Scientific-Atlanta announced that it has created a new business unit dedicated exclusively to the mobile satellite communications market, the fastest growing segment of the satellite communications industry. The new digital capability of satellites and smaller digital terminals has created new markets for Scientific-Atlanta ranging from shipping and fishing fleets and pleasure boat owners to truck fleets. The company has recently introduced the first of a series of products to serve these markets.
 Instrumentation Group performance was very strong following measures taken to enhance the Group's operations and performance in its three areas of focus: communications, signal processing and measurement and controls.
 In the communications area, the Group reinforced its long standing leadership in sophisticated tracking systems for remote sensing and space science applications with a major multi-year contract with the Jet Propulsion Laboratory to provide ground stations for a NASA deep space network.
 The company also announced that its newest digital communications testing and monitoring system, the DS9000, is being used by Teleglobe Canada to commission a new trans-Atlantic high density communications system linking Europe with North America via fiber-optic cable laid under the Atlantic Ocean. The Group also announced its selection by Korea Telecom to provide test systems as it transforms its domestic network from North American to international standards.
 The company increased its market position in the signal processing area through the development of new products and solid performance on its long-term government contracts. Additional orders were received for the successful RADS-AT product used by the U.S. Army for helicopter rotor track and balance. The RADS-AT was modified to be used to measure vibration for diagnostic purposes for gas turbines, engines and transmissions, thus opening up new market opportunities in helicopters, ships and armored vehicles. The company was also awarded several add on contracts from the U.S. Navy for the AN/BQR-22A sonar system. An acoustic training product, the SPS900, was introduced with a contract from the U.S. Navy. This program also opens up a new market to the company.
 Market gains in measurement and control were achieved in the utility, microwave production and aerospace areas. Scientific-Atlanta, the leader in distribution automation equipment for the electric utility industry, enjoyed continued strong sales of its load management system which automates key utility distribution functions. In addition, the company received orders from several utilities for Universal Network Monitor systems which monitor electrical activity and disturbances along a utility's lines.
 Scientific-Atlanta, a member of the U.S. Department of Defense MIMIC (Microwave and Millimeter Wave Monolithic Integrated Circuits) program, announced that it will develop and demonstrate hardware and software to reduce MIMIC chip and module test times. MIMIC is a seven-year program to research and develop applications for gallium arsenide ICs for certain electronic systems. The program is expected to yield products that have long term commercial potential.
 Scientific-Atlanta, Inc. is a world leader in cable television electronics, satellite-based communications networks and instrumentation for industrial, government and telecommunications applications.
 (In Thousands, Except Earnings Per Share)
 Twelve Months Ended
 June 26, June 28, Pct.
 1992 1991 Change
 Sales $580,831 $493,653 18
 Earnings (Loss) Before
 Income Tax $ 21,702 $ 1,532 ---
 Net Earnings (Loss) $ 16,277 $ 1,057 ---
 Earnings (Loss) Per Common
 Share and Common
 Share Equivalent $ .70 $ .05 ---
 Weighted Average
 Number of Common
 Shares and Common
 Equivalent Shares
 Outstanding 23,409 22,552 4
 New Orders
 Received $605,450 $505,260 20
 Three Months Ended
 June 26, June 28, Pct.
 1992 1991 Change
 Sales $172,939 $127,016 36
 Earnings (Loss) Before
 Income Tax $ 10,362 $(12,019) ---
 Net Earnings (Loss) $ 7,772 $ (8,292) ---
 Earnings (Loss) Per Common
 Share and Common
 Share Equivalent $ .33 $ (.37) ---
 Weighted Average
 Number of Common
 Shares and Common
 Equivalent Shares
 Outstanding 23,776 22,656 5
 New Orders
 Received $174,001 $121,873 43
 -0- 8/14/92
 /CONTACT: Robert S. Meyers, vice president - corporate communications, 404-903-4608/
 (SFA) CO: Scientific-Atlanta, Inc. ST: Georgia IN: CPR SU: ERN

EA-BN -- AT001 -- 9853 08/14/92 08:12 EDT
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Date:Aug 14, 1992

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