WHO COULD ASK FOR ANYTHING MORE......Harmonic Announces Record Fourth Quarter and Year-end
Results
Business Wire - January 19, 2000 16:30
SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 19, 2000--Harmonic Inc. (Nasdaq: HLIT) today
announced its results for the quarter and year ended December 31, 1999.
For the fourth quarter of 1999, Harmonic reported net sales of $63.3 million, up 134% from $27.1 million for
the fourth quarter of 1998. Net income for the fourth quarter of 1999 was $10.8 million or $0.33 per diluted
share on 33,074,000 shares outstanding, compared to net income of $628,000 or $0.02 per diluted share on
25,250,000 shares outstanding for the same period of the previous year.
For 1999, Harmonic reported net sales of $184.1 million, up 119% from $83.9 million for 1998. Net income
for 1999 was $23.7 million or $0.76 per diluted share, compared to a net loss of $21.5 million or ($0.92) per
diluted share for 1998. The loss for 1998 included a charge of $14.0 million or $0.60 per diluted share resulting
from the acquisition of Harmonic Data Systems.
Harmonic experienced strong demand for its fiber optic products across its worldwide base of cable customers
during the fourth quarter. Domestic sales increased 197% from the fourth quarter of 1998. While AT&T
continued to be the Company's largest single customer, Harmonic's shipments to other major domestic cable
operators grew strongly during the quarter. International sales increased across all regions, up 47% from the
fourth quarter of 1998.
During the quarter, Harmonic announced a definitive agreement to acquire the DiviCom business of C-Cube
Microsystems (Nasdaq: CUBE). DiviCom is a leading developer of standards-based MPEG-2 encoding
systems for digital video. The combination will position Harmonic as a leading supplier of open-system solutions
for delivering video, voice and data over a variety of network architectures. The transaction is currently
expected to close by the end of March, 2000.
"This was a great year for Harmonic," said Anthony J. Ley, Chairman, President and Chief Executive Officer.
"We are very pleased with our growth in sales and profitability, and our continued development and roll out of
exciting new systems. Backed by stronger financial resources and subscriber demand for bandwidth, cable
operators continued to upgrade their networks to offer video-on-demand, high-speed Internet access,
telephony and other advanced services."
"In 2000, we intend to continue to develop advanced fiber optic and digital systems, expand our worldwide
sales and marketing effort, and complete the acquisition and integration of DiviCom. The combination with
DiviCom will double the size of our company and allow us to offer more complete solutions for cable operators,
as well as expand our penetration into telecommunications, satellite, wireless and other emerging broadband
markets. We expect that combining DiviCom's strengths in digital compression and our strengths in fiber optics
will significantly enhance Harmonic's position in the broadband market."
A live Internet broadcast of Harmonic's fourth quarter conference call (2:00 PM Pacific/5:00 PM Eastern) will
be available today at www.harmonicinc.com under "Investor Relations."
About Harmonic Inc.
Harmonic designs, manufactures and markets digital and fiber optic systems for delivering video, voice and data
over cable, satellite and wireless networks. These advanced solutions enable cable television and other network
operators to provide a range of broadcast and interactive broadband services that include high-speed Internet
access, telephony, and video-on-demand.
Harmonic is headquartered in Sunnyvale, Calif., where it also operates an R&D center and a manufacturing
facility. The company also operates its Harmonic Data Systems subsidiary and an R&D center in Israel. In
addition, the company maintains several sales and support centers worldwide. Harmonic is ISO 9001-certified
and employs approximately 450 people. For more information about Harmonic please visit the Company's
website at www.harmonicinc.com.
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