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Stocks H / Harmonic Lightwaves, Inc.

URL:  http://boards.fool.com/q1-2007-earnings-25432961.aspx

Subject:  Q1 2007 Earnings Date:  4/26/2007  2:20 AM
Author:  whatismyoption Number:  1250 of 1255

Q1 2007 Results http://www.harmonicinc.com/ah_press_release_text.cfm?ID=668
Expectation of .08 they did .07
Looks good, beat on revenue, but over 6% fall in after hours so I guess investors wanted more.

- net sales of $70.2 million, up 25% from $56.2 million
- closed UK manufacturing and R&D to further reduce costs. Good move.

Business Outlook <snip>
The Company anticipates combined net sales for the second and third quarters of 2007 to be in a range of $140 to 150 million and gross margins to be 44% to 45% on a non-GAAP basis, excluding stock-based compensation expense and the amortization of intangibles. GAAP gross margins for the same period are anticipated to be in a range of 42% to 43%.

That's interesting as they did $70M in Q1 and they said that was traditionally their slowest quarter.
With the costs associated with closing UK behind them I hope to see improving margins and eps. Overall margins appear to be highly reactive to the product mix, but this comment is encouraging “we expect gross margins to improve in coming periods, as we continue to move forward on a number of significant video processing deployments”
With previous quarters of 0.10 and 0.13 for Q3 and Q4 2006, this quarter of 0.07 and next quarters estimate of 0.10, I get a near term forward earnings of $0.40. With after hours closing of $9.63 that gives a near term P/E of 24.

Has anyone listened to the conference call yet? Any thoughts on the earnings?
Dean
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