Wall Street likes it when you fire anyone not on Wall Street, so they pumped Scientific-Atlanta's stock price up 24% after the company announced another restructuring plan.
S-A plans to cut its work force 10%, losing about 750 jobs, and shift manufacturing now done in Atlanta to its Juarez, Mexico plant. About 500 of the employees cut are are in manufacturing and the other 250 are in engineering, marketing, sales, service and administration. As expected, S-A had a terrible quarter.
Sales of subscriber products, primarily digital set-top converters, decreased 28 percent to $278.7 million, while bookings of subscriber products fell 77 percent to $105.2 million.
The company attributed it to the drop in the economy and a slowdown in connections by cable operators.
- John M. Higgins