Scientific-Atlanta (SFA) posted solid numbers for the fiscal third quarter ended in March.
The cable system gearmaker booked income of $62 million, or 40 cents a share, on $489.5 million in sales. Those numbers compare with a 38-cent profit on $441 million in revenue in the prior quarter, and earnings of 34 cents a share on sales of $437 million in the year-ago period.
The financial performance exceeded analysts' expectations, which called for a 39-cent profit on $477 million in revenue. But Scientific's gross margins narrowed from second-quarter levels by 20 basis points to 36.9% due to falling prices.
"Our business is executing very well, and we view the coming period of architectural change as an opportunity for Scientific-Atlanta," CEO Jim McDonald said in a press release.
Last month, Scientific was picked by phone giant
to build a cable TV system to distribute video over the Internet. The multiyear deal was valued at $195 million.
Scientific shares rose a penny to $28.92 in early postclose trading Thursday.