General Instrument Corp, the Horsham, Pennsylvania-based cable TV, set-top box and datacommunications equipment manufacturer, said it expects strong third-quarter results on the back of brisk sales of its digital products. The company expects to report net income of $36m to $39m and earnings per share of between $0.21 to $0.22, compared to $0.17 in pro forma earnings for the year-ago period. Analyst surveyed by First Call had been expecting $0.19 for the quarter. Revenue should come in at $518m for the quarter, compared to $465m last year and $489m for the preceding quarter. Operating margins are expected to top 11%, against 7.9% and 10.1%, respectively. Cash from operations during the third quarter is expected to range from $90 to $100m and cash reserves should stand at $100m. GIC said sales for the quarter were driven by solid shipments of interactive digital cable TV systems, but was somewhat offset by anticipated international and analog sales decline. Transmission sales grew sequentially, in line with expectations, while sales of satellite products were slightly ahead of expectations. The company claims to have shipped its two-millionth set-top box during the quarter. Despite the positive pre-announcement, General Instrument shares fell $0.6875 to close at $19.25 on Friday.