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SCIENTIFIC-ATLANTA THIRD QUARTER NET EARNINGS UP 72 PERCENT; REVENUES UP 26 PERCENT

 ATLANTA, April 22 /PRNewswire/ -- Scientific-Atlanta, Inc. (NYSE: SFA) today reported that worldwide sales for the third quarter ended April 2, 1993, were $184.1 million, up 26 percent from last year's sales of $146.4 million.
 Net earnings of $6.9 million were up 72 percent compared to net earnings of $4.0 million last year. Earnings per share of $0.18 were
64 percent above last year's earnings per share of $0.11. Per share data has been restated to reflect the 3-for-2 stock split effected as a dividend issued in December 1992. New orders of $179.2 million were up 4 percent from last year. Order backlog was $229.6 million, down $1.3 million from the previous year.
 Sales of $542.0 million and earnings of $15.1 million, $0.41 per share, for the nine month period compared to sales of $407.9 million and earnings of $8.5 million, $0.24 per share, for the same period a year ago. Earnings were up 78 percent and earnings per share were up 71 percent over the prior year. New orders were $538.1 million, up 25 percent from $431.4 million in the comparable nine month period of the prior year.
 The company announced today that in the fourth quarter of fiscal 1993 it will adopt Financial Accounting Standards Number 106 "Postretirement Benefits," Number 112 "Postemployment Benefits" and Number 109 "Accounting for Income Taxes," effective as of the first quarter of fiscal 1993. Charges of $6.7 million and $1.9 million for FAS 106 and FAS 112, respectively, will be partially offset by a credit of $3.9 million for FAS 109 resulting in a one-time, after-tax charges of $4.7 million, $0.13 per share, to previously reported earnings for the quarter ended Sept. 25, 1992, and will be included in the earnings for the fiscal year ending July 2, 1993. The retroactive adoption of these standards will not have a significant impact on income from operations in 1993 and subsequent years.
 Scientific-Atlanta Chairman and Chief Executive Officer James V. Napier said: "We are pleased with the quarter's results, particularly in our Broadband operations. Excellent bookings and sales for the quarter confirmed the determination of cable operators to upgrade their systems in anticipation of the new technologies and services to be offered to subscribers in the years ahead.
 "We were also pleased with our quarter-to-quarter improvement in gross margins, as continued improvement in margins is one of our highest priorities."
 Communications
 Broadband sales were up significantly over the prior year as cable television operators invested in system upgrades to prepare for future services including digital video compression and a range of multimedia and pay-per-view services. Demand for distribution electronics equipment remains strong. Highlights of the quarter included continued success of international activities as illustrated by the announcement that Wharf Cable of Hong Kong will purchase Scientific-Atlanta distribution equipment for what is planned to be the world's largest cable system and also by the announcement that the company has entered into the first joint venture in China to manufacture cable TV distribution equipment. Production is expected to begin in about 12 months.
 The company's new 8600XTM home communications terminal, which will begin shipments this summer, continues to be well-received by the market. For example, Cablevision Systems of Yonkers, N.Y., placed an order for 50,000 terminals. Also, United Video Satellite Group announced plans to provide for the delivery of a range of interactive multimedia services to cable operators. Scientific-Atlanta will develop an electronic interface so subscribers can receive the services via the 8600X.
 During the quarter, the International Standards Organization (ISO) Moving Pictures Expert Group (MPEG), comprised of experts from more than 100 companies worldwide, reached agreement on the final specifications of an international standard for broadcast and entertainment applications of digital video compression. Scientific-Atlanta's MPEG-based digital video compression system continues its successful roll-out with recent orders from SkyConnect for digital ad insertion and from Vyvx, Inc. for the distribution of sports programming to major broadcasters and cable systems.
 Network Systems activity was up over the prior year. Four former Soviet Union republics selected Scientific-Atlanta digital ready satellite earth stations, bringing to 21 the total of eastern and western European countries working with Scientific-Atlanta to provide digital satellite technology for broadcasting applications. Cemex of Mexico, the world's fourth-largest producer of cement and concrete materials, purchased a very small aperture terminal (VSAT) network, and Banca Serfin, one of the oldest and largest financial institutions in Mexico, expanded an existing Scientific-Atlanta VSAT system. The first product produced by the company's new Mobile Satellite Systems business unit, an Inmarsat-M terminal providing voice capabilities for vessels 35 feet and longer, was the first terminal in the industry to be approved by Inmarsat for connection to its new Inmarsat-M digital service network. A multivoice system, the business unit's second product, was installed abroad the Queen Elizabeth 2 and the Rotterdam to provide international telephony services to passengers.
 Instrumentation
 Instrumentation bookings were down from the previous year reflecting the timing of large government contract awards. Sales levels were stable. The company introduced a radio-controlled electric utility service reconnect device (SRD) which allows electric utilities to remotely control residential customers' electrical service in areas where frequent customer site visits are currently required. Scientific-Atlanta was selected by the U.S. Army to participate in the second phase of its OBSERVE program, which provides on-board monitoring systems on U.S. Army helicopters. The company installed the first Fast Time Analizer System (FTAS) under its contract to support the U.S. Navy's anti-submarine warfare program, opening the way for continued production. The Electronics Systems Division was the first Scientific-Atlanta unit to be certified as meeting ISO 9001, the emerging worldwide total quality management standard set by the International Standards Organization. Scientific-Atlanta has chosen to employ ISO standards as its company-wide quality system.
 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)
 3 mos. ended 4/2/93 3/27/92
 Sales $184.1 $146.4
 Costs and expenses
 Cost of sales 131.2 102.9
 Sales and administrative 28.3 23.9
 Research and development 16.0 13.6
 Interest expense .2 .2
 Interest (income) (.6) (.8)
 Other (income) expense (.2) 1.3
 Total costs and expenses 174.9 141.1
 Earnings before income taxes 9.2 5.3
 Provision for income taxes 2.3 1.3
 Net earnings $6.9 $4.0
 Earnings per common share and
 common equivalent share $0.18 $0.11
 Weighted average number of common
 shares and common equivalent
 shares outstanding 38.1 35.4
 New orders received $179.2 $172.7
 9 mos. ended 4/2/93 3/27/92
 Sales $542.0 $407.9
 Costs and expenses
 Cost of sales 397.0 286.3
 Sales and administrative 82.2 74.3
 Research and development 45.2 38.3
 Interest expense .6 .4
 Interest (income) (2.2) (3.5)
 Other (income) expense (.9) .8
 Total costs and expenses 521.9 396.6
 Earnings before income taxes 20.1 11.3
 Provision for income taxes 5.0 2.8
 Net earnings $15.1 $8.5
 Earnings per common share and
 common equivalent share $0.41 $0.24
 Weighted average number of common
 shares and common equivalent
 shares outstanding 37.3 34.9
 New orders received $538.1 $431.4
 Share data has been restated to reflect the 3-for-2 stock split effected as a dividend issued in December 1992.
 -0- 4/22/93
 /CONTACT: Bob Meyers of Scientific-Atlanta, 404-903-4608/
 (SFA)


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

BR-BN -- AT016 -- 9665 04/22/93 16:03 EDT
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