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Stocks H / Harmonic Lightwaves, Inc.
|Subject: HLIT EARNINGS 23 aP 2008||Date: 6/2/2008 11:51 AM|
|Author: matson15||Number: 1255 of 1255|
This is HLIT's website press release so I'll give it in full.
Harmonic Announces First Quarter Results
Strong Year-over-Year Sales and Earnings Growth; Expanding Range of Customers Worldwide;
Extending Technology Leadership with Award-Winning New Products
Sunnyvale, Calif. - April 23, 2008 - Harmonic Inc. (NASDAQ: HLIT), a leading provider of broadcast and on-demand video delivery solutions, today announced its preliminary and unaudited results for the quarter ended March 28, 2008.
For the first quarter of 2008, the Company reported net sales of $87.3 million, up 24% from $70.2 million in the first quarter of 2007. The strong year-over-year revenue growth reflected continued success with longstanding domestic cable and satellite customers, as well as sales to an expanding range of new customers worldwide that are deploying a variety of innovative new video services. International sales grew proportionately to domestic sales, and represented 39% of revenue for the first quarter of 2008, compared to 40% in the same period of 2007.
The Company achieved higher gross margins in the first quarter of 2008, both year-over-year and sequentially, as it continued to execute its strategy to develop and acquire new products and solutions that provide significant and differentiated value to its customers. In particular, the improvement in gross margins reflected increased deployments of Harmonic’s new edge QAM products in on-demand, switched digital and modular CMTS applications worldwide. In recent periods, including the first quarter of 2008, gross margins have also benefitted from sourcing and cost efficiencies on higher volumes and from product design innovations.
GAAP net income for the first quarter of 2008 was $13.4 million, or $0.14 per diluted share, up from $1.1 million, or $0.01 per diluted share, for the same period of 2007. Excluding non-cash accounting charges for stock-based compensation expense and the amortization of intangibles, the non-GAAP net income for the first quarter of 2008 was $16.6 million, or $0.17 per diluted share, up from $5.3 million, or $0.07 per diluted share, for the same period of 2007. See “Use of Non-GAAP Financial Measures” and “GAAP to non-GAAP Reconciliation” below.
As of March 28, 2008, the Company had cash, cash equivalents and short-term investments of $278.9 million, up from $269.3 million as of December 31, 2007.
“We are very pleased with our strong operating performance in the first quarter, with both sales and gross margins exceeding expectations,” said Patrick Harshman, President and Chief Executive Officer. “We saw strong revenue from our domestic cable and satellite customers, as they continue to expand their on-demand and high-definition channel offerings. We also continued to see strong growth outside of the US, as we extended our global customer base throughout Europe, Asia and Latin America.”
“Our newest IP-based systems and solutions are winning prominent industry awards and continuing to strengthen our technology leadership. Our products for advanced video delivery continue to be selected to power many of the high profile digital video deployments worldwide, driving our growth and continued customer diversification, while also improving our gross margins and profitability. We have also continued to improve the efficiency of our operations and inventory management, and strengthen our balance sheet. At the same time, we are investing in the future of our business and introducing exciting new products that address the powerful trends toward more high-definition, on-demand and anytime, anywhere video, which continue to reshape the video delivery marketplace.”
The Company anticipates that the combined net sales for the second and third quarters of 2008 will be in a range of $170 to $180 million and gross margins will be 46% to 48% on a GAAP basis. Non-GAAP gross margins for the same period, excluding stock-based compensation expense and the amortization of intangibles, are anticipated to be in a range of 48% to 50%.
Conference Call Information
Harmonic will host a conference call today to discuss its financial results at 2:00 p.m. Pacific (5:00 p.m. Eastern). A listen-only broadcast of the conference call can be accessed on the Company’s website at www.harmonicinc.com or by calling +1.706.634.9047 (conference identification code 42477573). The replay will be available after 6:00 p.m. Pacific at the same website address or by calling +1.706.645.9291 (conference identification code 42477573).
About Harmonic Inc.
Harmonic Inc. is a leading provider of versatile and high performance video solutions that enable service providers to efficiently deliver the next generation of broadcast and on-demand video services, including high definition, video-on-demand, network personal video recording and time-shifted TV. Cable, satellite, broadcast and telecom service providers can utilize Harmonic’s digital video, broadband optical access and software solutions to offer consumers a compelling and personalized viewing experience.
Harmonic (NASDAQ: HLIT) is headquartered in Sunnyvale, California with R&D, sales and system integration centers worldwide. The Company’s customers, including many of the world’s largest communications providers, deliver services in virtually every country. Visit www.harmonicinc.com for more information.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to: our belief that our products for advanced video delivery will continue to be selected to power many digital video deployments worldwide; our expectation that we will continue to improve the efficiency of our operations and inventory management, and strengthen our balance sheet; our expectation that we will continue to invest in the future of our business and introduce exciting new products; and our expectations regarding net sales, GAAP gross margins and non-GAAP gross margins for the second and third quarters of 2008. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the possibility that: we will not identify or complete selective acquisitions; the trends toward more high-definition, on-demand and anytime, anywhere video will not continue to develop at its current pace, or at all; our products will not generate sales that are commensurate with our expectations; the mix of products sold and the effect it has on gross margins; delays or decreases in capital spending in the cable, satellite and telco industries; customer concentration and consolidation; general economic conditions; market acceptance of new or existing Harmonic products; losses of one or more key customers; risks associated with Harmonic's international operations; inventory management; the effect of competition; difficulties associated with rapid technological changes in Harmonic’s markets; the need to introduce new and enhanced products; and risks associated with a cyclical and unpredictable sales cycle. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic’s filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 3