Harmonic Books Losses, Sees Growth
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