S-A to recognize Cablevision revenue
Scientific-Atlanta said it has inked a supplemental agreement with Cablevision Systems Corp. that will enable to broadband vendor to report revenue for equipment purchased by the MSO's equipment orders.
The new agreement stems from a deal signed in Sept. 2002 that made S-A Cablevision's second source for digital set-tops, including the Explorer 4200, and associated headend equipment. Prior to that deal, Sony Corp. was Cablevision's sole supplier for digital boxes.
S-A couldn't record revenues tied to the Cablevision in the previous quarter due to some "open terms and conditions of the contract" that needed to be sorted out, said an S-A spokesman, who declined to provide further detail other than that the terms and conditions were not tied to quantities and prices.
"The terms and conditions were agreed to," the S-A spokesman said. "Now we can recognize that revenue."
The result will give S-A's books quite a boost in the current quarter and in future financial periods. In addition to gaining the ability to recognize revenue on products shipped to Cablevision in the current quarter and in future quarters, S-A will also realize about $16 million in revenue previously deferred from the delivery of products in the quarter ended Sept. 27, 2002. S-A noted that roughly $2 million of the deferred revenue is for development, maintenance and support services that will be earned over the remaining term of its contract with Cablevision.