Scientific Atlanta
| File:Scientific Atlanta logo old vertical.svg | |
| Company type | Public |
|---|---|
| Industry | Broadband |
| Founded | 1951 |
| Founders | James E. Boyd Charles Griffin Robert E. Honer Gerald Rosselot Lamar Whittle Vernon Widerquist Glen P. Robinson |
| Defunct | November 25, 2015 |
| Fate | Acquired by Cisco Systems |
| Headquarters | , United States |
Key people | Tony Bates, Cisco James F. McDonald, CEO |
| Products | Set-top boxes Cable distribution Cable Modems IPTV hardware |
| Revenue | $1.9 billion (fiscal year 2005) |
Number of employees | 9,784 (as of June 5, 2007) |
| Parent | Cisco Systems (2006–2015) |
| Website | scientificatlanta.com |
Scientific Atlanta, Inc. was a manufacturer based in Georgia that focused on broadband, telecommunications, and cable television equipment. Established in 1951 by engineers affiliated with the Georgia Institute of Technology, the company evolved into a Fortune 500 enterprise and ranked among the top 25 revenue-generating companies in Georgia.
In 2005, Cisco Systems completed its acquisition of Scientific Atlanta for $6.9 billion following antitrust clearance, marking Cisco’s largest purchase to date and one of the most significant transactions in technology sector history. This acquisition enhanced Cisco’s presence in the broadband and cable distribution markets.
For nearly sixty years, Scientific Atlanta was regarded as a cornerstone of Atlanta’s technology industry, often likened to "Atlanta’s Microsoft or Hewlett Packard" due to its substantial impact and growth within the broadband hardware sector.
Products
Scientific Atlanta’s product portfolio included broadband home access transmission networks, set-top cable boxes, cable modems, and digital interactive subscriber platforms supporting video streaming, high-speed Internet, and VoIP services. Their cable television offerings spanned from fiber optic head-end systems to the Explorer series of digital set-top boxes and cable modems (previously known as WebSTAR prior to Cisco’s acquisition in 2006). The widely used Scientific Atlanta 2100 cable modem was deployed by major providers such as Spectrum, Comcast, Time Warner Cable, and Cox Communications. Additionally, the company supplied distribution technologies to networks like Bloomberg Television, CNN, and ESPN.
Following its integration into Cisco, Scientific Atlanta expanded its IPTV product line. Notably, in 2005 it secured an exclusive agreement with SBC (now AT&T) to supply set-top boxes for U-verse TV services.
History
Scientific Atlanta was founded in October 1951 by six researchers from the Georgia Tech Research Institute—James E. Boyd, Charles Griffin, Robert E. Honer, Gerald Rosselot, Lamar Whittle, and Vernon Widerquist—each contributing $100 to commercialize innovations developed at the research facility. Glen P. Robinson joined the company in 1952 and eventually acquired majority ownership by purchasing most of the original investors' shares.
Robinson led as CEO for two decades and served an additional eight years as chairman before retiring in 1979. Under his guidance, annual revenue increased from $3.1 million in 1962 to approximately $200 million at his departure. Sidney Topol succeeded him as president (1971–1983), CEO (1975–1987), and chairman (1978–1990), during which time sales grew beyond $600 million. In the 1970s, the firm pioneered satellite-based cable connections with HBO and TelePrompTer Corporation, enabling satellite television delivery for cable operators.
In 2000, Scientific Atlanta divested its satellite ground station and networking divisions to Viasat. A workforce reduction of 6% occurred in 2002. The company introduced its first Explorer HD set-top box in 2003 and followed with the DVR-capable Explorer 8000HD model in 2004.
Once dominant in set-top box manufacturing with clients including Time Warner Cable, Cablevision, and AT&T U-verse—where it held complete market share—the company later encountered competition from Arris International and Samsung as these customers diversified their suppliers. Providers such as Comcast, Suddenlink Communications, Charter Communications, and Cox Communications divided their business between Scientific Atlanta/Cisco and Arris.
On November 18, 2005, Cisco Systems announced its intention to acquire Scientific Atlanta for $6.9 billion in cash; the transaction finalized on February 25, 2006 at $43 per share. The deal valued Scientific Atlanta at roughly $7 billion gross or $5.1 billion after accounting for cash reserves—approximately $5.1 billion above shareholder equity for fiscal year 2005. That year Scientific Atlanta reported diluted earnings per share of $1.36.
In November 2015, Cisco divested its Connected Devices Business Unit—which primarily consisted of products originally developed by Scientific Atlanta—to Technicolor SA. This division encompassed set-top boxes, cable gateways/modems, CableCard devices, digital transport adapters, wireless video access points, network extenders, accessories, and associated software solutions.
Scientific Atlanta earned a Technology & Engineering Emmy Award in 2008 for creating interactive video on demand infrastructure and signaling systems that facilitated extensive VOD deployments.
External links
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- Companies located in Gwinnett County, Georgia
- Computer firms founded in 1951
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- Cisco acquisitions
- Former computer companies in the United States
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- 1951 establishments in Georgia (U.S. state)
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- American enterprises founded in 1951
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