Scientific-Atlanta stock dropped 17% at one point on Friday after the cable
equipment company said sales of digital cable converters are slowing.
S-A blamed the slowing pace of cable operators' installation of digital
product, though some analysts believe that the company is suffering from
competition from Pioneer and Pace and had overloaded MSOs' warehouses in recent
S-A's biggest customers are AOL Time Warner Inc., Charter Communications Inc.
and Adelphia Communications Corp.
Morgan Stanley analyst Gary Lieberman cut his estimate of the company's sales
for fiscal 2002 ending next June from 4.7 million digital converters to 3.6
million, a 24% drop.
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