Founded in October 1951 by six
Georgia Tech Research Institute researchers:
James E. Boyd (future station director), Charles Griffin, Robert E. Honer (MSEE),
Gerald Rosselot (station director), Lamar Whittle, and Vernon Widerquist, who each invested $100. In late 1952
Glen P. Robinson became the seventh member. Scientific Atlanta was started to produce technology developed at the research station. After the fledgling company's first contract resulted in a $4,000 loss, Robinson bought out all but one of the original investors, and paid them each back their original $100. In 2000, the company sold its satellite ground station and satellite networking businesses to
Viasat. In August 2002, the company laid off 6 percent of the company's total. In February 2003, Scientific-Atlanta introduced their first Explorer HD set-top box, which is capable of displaying
HDTV programming, at
Best Buy stores in the
Phoenix metropolitan area. It was later rolled out nationwide. In March 2004, Scientific-Atlanta launched the Explorer 8000HD, their first set-top box with both DVR and HD. In the set-top arena, Scientific-Atlanta once enjoyed 100% market share with
Time Warner Cable,
Cablevision and
AT&T U-verse; all three companies have since started to transition to other boxes, Cablevision using
Samsung, while TWC and U-verse are split between SA/Cisco and competitor
Arris (formerly
Motorola).
Comcast also has a split account with the two companies. Other companies that have split accounts with SA and Arris are
Suddenlink Communications,
Charter Communications and
Cox; the two vendors also had split accounts for
Adelphia before that company went under in 2006.
Pace plc, which mainly competes in foreign markets, serves as a domestic rival, but on a limited scale. On November 18, 2005, Scientific Atlanta announced that it would be purchased by
Cisco Systems in a US$6.9 billion cash deal. On February 25, 2006, Cisco Systems announced that it had completed acquisition of Scientific Atlanta in a cash deal that paid $43 per share. The total cash value of the deal was roughly US$7 billion, or US$5.1 billion net of Scientific Atlanta's cash balance, and also about US$5.1 billion over their 2005
shareholders' equity. In its fiscal year 2005, Scientific Atlanta earned $1.36 per common share (diluted). On November 21, 2015, Cisco completed sale of its Connected Devices Business Unit (CDBU) to
Technicolor SA. This business was comprised primarily by customer premises equipment (CPE) related hardware and software that had originated at Scientific Atlanta, including set top boxes, cable gateways / modems, CableCard devices, digital transport adapters, wireless video access points, network extenders, accessories and eleven software products related to these offerings. The company was honored at the 2008
Technology & Engineering Emmy Awards for development of interactive video on demand infrastructure and signaling, leading to large scale
VOD implementations. ==References==