Harmonic Posts Record Revenue
Growth driven by international sales
February 1, 2012
SAN JOSE, CALIF.: Shares of Harmonic spiked Wednesday on the news that four-quarter earnings met analysts expectations, and revenues exceeded them. Shares (NASDAQ: HLIT) peaked during the day at more than $6.75, after averaging $5.55 over the last six months.
“We delivered record revenue for the fourth quarter and the full year of 2011,” said Harmonic President and CEO Patrick Harshman.
Net revenue for the quarter ending Dec. 31, 2011, was $143.6 million, up 4 percent from $138.2 million for 4Q10. NASDAQ reported that the 4Q11 consensus estimate of nine Wall Street analysts was $140.49 million.
International sales represented 57 percent of total 4Q11 revenue. Total bookings were approximately $142.0 million, up from around $134.8 million in 4Q10. Results for the entire year of 2011 and for the fourth quarter of 2010 include full quarterly contributions from Omneon, acquired on Sept. 15, 2010.
Harshman said growth was driven by “increased video processing wins across our expanding global customer base, with video processing revenue up 17 percent and international revenue up 14 percent on a pro forma basis.”
Omneon extended Harmonic’s business into new markets, driving growth in broadcast and media revenues up by 17 percent pro forma.
“We believe the global proliferation of video content and media outlets, along with increasing demand for higher quality video in every format delivered over bandwidth constrained networks, plays into our core strengths,” Harshman said.
For the full year 2011, GAAP net revenue was $549.3 million, up from $423.3 million for 2010, pro forma annual revenue--which included revenue from Omneon and certain deferred revenue excluded in GAAP results for both years--was $551.4 million for 2011, up 8 percent from $509 million for 2010.
The company reported GAAP net income for 4Q11 of $4.3 million, or 4 cents per diluted share, compared to a net loss of $13.7 million, or 12 cents per diluted share, for 4Q10. For the full year 2011, GAAP net income was $8.8 million, or 8 cents per diluted share, compared to a net loss of $4.3 million, or 4 cents per diluted share, for 2010.
Non-GAAP net income for 4Q11 was $14 million, or 12 cents per diluted share--meeting Thomson Reuters expectations--and up from $12.5 million, or 11 per diluted share. For the full year 2011, non-GAAP net income was $47.5 million, or 41 cents per diluted share, up from $36.4 million, or 35 cents
As of Dec. 31, 2011, the company had cash, cash equivalents and short-term investments of $161.8 million, up from $140.9 million as of Sept. 30, 2011 and $120.4 million as of Dec. 31, 2010.
Harmonic anticipates net revenue to be in the range of $132 million to $142 million for the first quarter of 2012, which is historically the company’s slowest quarter for the year. GAAP gross margins and operating expenses for the first quarter of 2012 are expected to be in the range of 45 to 47 percent and $61 million to $63 million, respectively. Non-GAAP gross margins and operating expenses for the first quarter of 2012, which will exclude charges for stock-based compensation and the amortization of intangibles, are anticipated to be in the range of 50 to 52 percent and $55 million to $57 million, respectively.
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