Sunday, May 3, 2009

Harmonic Posts Q1 Revenues of $68 Million, Down 22%

Harmonic reported Q1 net sales of $67.8 million, down 22% compared to $87.3 million in the first quarter of 2008. The lower than anticipated net sales were the result of continuing weakness in the customer order rate across many different markets throughout most of the first quarter. There was a GAAP net loss for the first quarter of 2009 of $18.8 million, or $0.20 per diluted share, compared to net income of $13.4 million, or $0.14 per diluted share, for the same period of 2008.

Harmonic said bookings for the first quarter were approximately $57 million, compared to $70 million and $73 million in the first and fourth quarters of 2008, respectively. Moving into the second quarter, however, the company said it has seen some signs of improvement in orders from customers.

"We continued to see weakness in global customer spending through most of the first quarter. Given this environment, we are pleased with our gross margins and operating expense control," said Patrick Harshman, President and Chief Executive Officer. "Heading into the second quarter, we are seeing some signs of improving customer spending as well as positive customer response to our newest products. The recent acquisition of Scopus is further expanding our range of new products, capabilities and customers, and its integration is proceeding as planned.

Harmonic anticipates that net sales for the second quarter of 2009 will be in a range of $72.0 to $78.0 million. GAAP gross margins and operating expenses are expected to be in a range of 42% to 44% and $38.0 to $39.0 million, respectively.

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