Scientific-Atlanta (SFA) hit second-quarter earnings targets but missed sales targets for the second time in a row.
The Atlanta-based maker of cable set-top boxes made $53 million, or 34 cents a share, down from the year-ago $59 million, or 38 cents a share. Excluding certain costs, pro forma earnings rose to 44 cents a share from 38 cents a year ago, beating the Thomson First Call analyst consensus estimate by a penny.
Revenue rose to $495 million from $441 million a year earlier. Analysts had been looking for sales of $511 million.
Latest-quarter pro forma numbers exclude $6.6 million of pretax expenses related to the pending acquisition by
, which agreed in November to buy Scientific-Atlanta. The company also took a pretax writedown of $3.6 million related to an equity investment and $9.8 million of pretax stock option expense.
Second quarter bookings were $549.4 million, up 16% from a year ago and 20% sequentially. Subscriber product bookings rose 21% from a year ago and up 34% sequentially. Bookings of transmission products rose slightly from last year but dropped 13% sequentially.
Gross margin in the second quarter was 36.1% of sales, down 1 percentage point from last year. This decline was related primarily to less favorable product mix, expenses related to a cable modem product issue that was resolved during the quarter just ended and the expensing of stock options.