Scientific-Atlanta doubles 3Q earnings

(Telephony) Scientific-Atlanta yesterday reported doubled earnings per share for the third fiscal quarter compared to the same period last year, and increased its guidance for fiscal 2001.

Citing strong sales of its Explorer digital cable set-top box, the company posted profits of $76.2 million for the quarter ending March 30, or 46 cents per diluted share, compared to $38.1 million, or 23 cents per diluted share, for the third quarter 2000.

Scientific-Atlanta’s earnings outpaced Wall Street analysts’ expectations of 42 cents per share, according to Thompson Financial/First Call.

The company said it shipped more than 1.4 million of its set-top units in the third fiscal quarter, raising the cumulative sales total to six million units. Scientific-Atlanta also raised its full year set-top target by 200,000 to 4.9 million units.

Scientific-Atlanta also increased its earnings estimates for fiscal 2001, which ends in June, from the previous guidance of $1.64 to $1.72 per share. The raised expectation is based on ongoing operations and excludes the impact of power TV.

The company’s increased expectation and clear visibility is not without basis, as it reported a $1 billion order backlog, up $227.8 million from one year ago and $48.9 million from last quarter. The set-top units backlog after the third quarter was 2.2 million, up from 2.1 million after the previous quarter.

Although it experienced a slight decline in broadband transmission product sales overall, strong sales overseas helped balance decreased capital spending in the U.S., particularly by AT&T Broadband, the company said.

“Through our diverse worldwide customer base, we were able to compensate virtually for the entire shortfall in the U.S. through international opportunities,” said company chairman and CEO James McDonald in a conference call to investors. “We expect international network upgrades and rebuilds to become a significant source of growth.

Scientific-Atlanta increased international bookings quarter-to-quarter by 24% and has shown a booking increase of 45% for the year to date. Sales abroad increased 31% for the year.

Looking ahead, the company said continued strong set-top sales and a good balance between its transmission and subscriber businesses would result in double digit growth moving into fiscal 2002.