Harmonic 1Q Revenues Down 22 Percent
May 5, 2009
SUNNYVALE: Harmonic shares fell more than 20 percent on the news that it had missed 1Q revenue estimates. The video-on-demand specialist posted net sales of $67.8 million for the quarter ending April 3, compared to $87.3 million in the first quarter of 2008. The lower than anticipated net sales were attributed to continuing weakness in the customer order rate across several markets for most of the first quarter. Bookings for 1Q09 were approximately $57 million, compared to $70 million and $73 million in the 1Q08 and 4Q08, respectively. Harmonic (NASDAQ: HLIT) said bookings showed some improvement in March that’s expected to show up in 2Q09.
Net loss for 1Q09 came in at $18.8 million or 20 cents a share, compared to a profit of $13.4 million or 14 cents a share the year earlier. Excluding an $11.9 million charge related to the acquisition of Scopus that closed mid-March, and other non-cash items, HLIT would have posted net income of $4.1 million or 4 cents a share. Comparable income for 1Q08 was $16.6 million or 17 cents a share.
As of April 3, HLIT had cash and equivalents of $262 million, compared to $327 million as of Dec. 31, 2008. The reduction was attributed to the $50 million purchase of Scopus. International sales represented 52 percent of revenues in 1Q09 compared to 39 percent a year ago. How much of that contribution was due to Scopus, based in Tel Aviv, Israel, was not spelled out. Harmonic expects net sales for 2Q09 to come in between $72 million and $78 million. – Deborah D. McAdams