The performance of such companies is relevant because increased penetration of DVRs in the consumer market will have an impact on pricing of commercial systems

<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

SA said its earnings for the fiscal first quarter ended Oct. 1 rose to $US55.9 million, or 36 cents a share, matching the average forecast by analysts surveyed by Thomson First Call.

It earned $US42.7 million, or 28 cents a share, in the same period last year.

Sales increased 14 percent to $452.7 million from $US395.6 million a year earlier, but fell short of analysts’ mean forecast of $461 million.

Scientific-Atlanta said demand for its DVRs remains strong, with 397,000 shipped during the quarter. The company also said it sold 416,000 cable modems, a record number for any quarter.