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Cable/Video

Harmonic Books Losses, Sees Growth

Harmonic Inc. (Nasdaq: HLIT) losses increased and its revenues fell during its second fiscal quarter ended June 27, a sign that it is still tough sledding for equipment makers catering to cable multiservice operators (MSOs). However, the company says it does see higher sequential revenues next quarter as some cable operators upgrade their networks.

The cable headend and broadband equipment maker says it lost $11.7 million, 19 cents a share, compared to a loss of $11.1 million, or 19 cents a share, for the year-ago period. Harmonic would have lost only $6.6 million, or 11 cents a share, were it not for a litigation settlement and other special charges.

The company's revenues were $41.7 million, compared to $56.3 million in the second quarter of 2002. A consensus of analysts expected Harmonic to lose 12 cents a share on revenues of about $41.3 million, according to Multex.com Inc.

The company's CS division, which makes digital headend systems, and its BAN division, which makes broadband cable gear, both saw slight sequential sales increases during the quarter. However, with more than 70 percent of the company's sales coming from the U.S., Harmonic's fate is tied to how cable providers fare in this country's shaky economy.

Chief financial officer Robin N. Dickson says Harmonic will continue to see sequential revenue growth during the next three months. He says Harmonic expects to report a loss in the range of 14 cents to 17 cents a share on revenues of $42 million to $46 million during the third quarter.

The company's headcount is 559, down from 587 in December 2002.

Sales to Comcast Corp. (Nasdaq: CMCSA, CMCSK) accounted for 37 percent of Harmonic's revenues in the quarter.

"Things are certainly better than they were six to nine months ago, but the economy is not out of the woods yet," says Dickson.

Separately, Harmonic says it has settled litigation with Power and Telephone Supply (P&T) in Federal court in Tennessee. The settlement requires Harmonic to pay P&T $2.8 million so it will release of all its outstanding claims.

— Phil Harvey, Senior Editor, Light Reading

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BobbyMax 12/4/2012 | 11:44:42 PM
re: Harmonic Books Losses, Sees Growth It is not clear as to why Harmonic sees growth. The Telecom Sector will be dormant for another 2-3 years and even then it is not sure if the market would revive.

Until Lucent and Nortel recoup their loses and become the market leaders again, there are no other predictors/indicators. If Lucent has to file for bankruptcy, the entire telecom indutry would collapse. Lucent with 37,000 personnel on the payroll and with not very many products is in an unprectalde situation. Nothing new has come out of Lucent in the past 2-3 years.
dodo 12/4/2012 | 11:44:40 PM
re: Harmonic Books Losses, Sees Growth "Until Lucent and Nortel recoup their loses and become the market leaders again"

What have you been smoking?
They are becoming the dinosaurs-no innovation whatsoever.
gea 12/4/2012 | 11:44:38 PM
re: Harmonic Books Losses, Sees Growth BobbyMax:

All your base are belong to us.
busted 12/4/2012 | 11:44:38 PM
re: Harmonic Books Losses, Sees Growth what in the world are you talking about now?

Lucent and Nortel are in a completely different market. Harmonic makes Cable and Broadband/Access Equiptment, this is completely unrelated to Nortel and Lucent.

Besides, what in the world does the health of the (telecom) market have to do with the health of Lucent or Nortel. Lucent could completely disappear and the condition of the telecom market would be unchanged. Market health is defined by demand and the health of the carriers, not by the health of equipment vendors.

Whew, that felt good! now I know why they keep you around.



rjmcmahon 12/4/2012 | 11:44:37 PM
re: Harmonic Books Losses, Sees Growth Market health is defined by demand and the health of the carriers, not by the health of equipment vendors.

Why do you believe this?
single mode figure 12/4/2012 | 11:44:36 PM
re: Harmonic Books Losses, Sees Growth gea get a life outside of the bobby max box.

I think "all your base belong to us," is a cloak reference to Bobby Max's knighting or something, but gea take a tip from me and don't show yourself at any industry shows, my cousin Carmine has it for you too! A knee cap is a great thing to keep..
lightmaster 12/4/2012 | 11:44:35 PM
re: Harmonic Books Losses, Sees Growth "Market health is defined by demand and the health of the carriers, not by the health of equipment vendors."

NOT. If Lucent/Nortel/etc. go under, carriers are left with a huge installed base with nobody to support it.
gea 12/4/2012 | 11:44:35 PM
re: Harmonic Books Losses, Sees Growth "but gea take a tip from me and don't show yourself at any industry shows, my cousin Carmine has it for you too! A knee cap is a great thing to keep.."

Single Mode Figure: Kiss My Ass. I assume you're joking, but even in tough NYC neighborhoods no one fucks with me, and with good reason. If your "cousin Carmine" sees me and he has any sense, he'll do the same.

A hint, dumbass: Whenever you see a Booby post followed by one of mine with the same title, feel free to ignore it. That ain't stalking, unlike your threat.
let-there-be-light 12/4/2012 | 11:44:34 PM
re: Harmonic Books Losses, Sees Growth Hi Gea,

Maybe I should call you "the tough dr." from now on after that outburst, but, seriously, I do wonder what "all your base belong to us" means? It does seem to get through to Booby (which is very unusual in itself for that Gollum), but I can't figure out why...
optodunce 12/4/2012 | 11:44:33 PM
re: Harmonic Books Losses, Sees Growth I have a strange yet validated sense that GEA and Bobby Max are one in the same...

BobbyMax is Gea's Alter ego...1) they seem to always post in close proximity to one another-timestamp wise 2)no way can anyone be intentionally as bizarre as BobbyMax...3)lastly bobbymax and gea spelled backwards are xamybbob and aeg respectively...coincidence, I think not!!!!
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