T. Weisel Keeps 'Outperform' on Scientific-Atlanta

Analyst Jason Ader says the company is the best-positioned supplier for cable's new video recorder services

Thomas Weisel keeps outperform on Scientific-Atlanta (SFA ).

On Monday the broadband products company introduced new solutions. Analyst Jason Ader says Comcast will launch personal video recorder (PVR) service in Arlington, VA, and Alexandria, VA, on Wednesday, using Scientific-Atlanta's Explorer 8000 set-top box.

Ader thinks this event validates his thesis that despite cable capital spending concerns, PVR technology is becoming a necessary expenditure for cable multiple systems operators, and Scientific-Atlanta is the best-positioned supplier. He says a short trial for Explorer 8000 bodes well for consumer uptake. He also says the commercial launch of PVR service came much sooner than he expected, suggesting robust consumer demand.

Ader sees 71 cents fiscal 2003 (Jun.) earnings per share, and 83 cents for fiscal 2004.

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