Harmonic Announces First Quarter Results ...from 4/19
biz.yahoo.com
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 19, 2000--Harmonic Inc. (Nasdaq: HLIT - news) today announced its results for the quarter ended March 31, 2000.
For the first quarter of 2000, Harmonic reported net sales of $62.9 million, up 108% from $30.3 million for the first quarter of 1999. Net income for the first quarter of 2000 was $9.3 million or $0.28 per diluted share on 33,391,000 shares outstanding, compared to net income of $1.3 million or $0.05 per diluted share on 26,692,000 shares outstanding for the same period of 1999.
For the quarter, Harmonic had strong year-over-year growth for its fiber optic and digital products across its worldwide customer base. Domestic sales increased 141% and international sales increased 62% from the first quarter of 1999.
While AT&T continued to be the Company's largest single customer, Harmonic's shipments to other domestic and international cable operators grew strongly during the quarter. The Company shipped its METROLink DWDM product to several new customers, and saw good growth in its sales of optical node and return-path products. In addition, Harmonic continues to work with AT&T and others to explore a variety of new deep fiber network architectures that enable greater bandwidth, higher reliability and better access to advanced services.
Harmonic's digital product sales also grew significantly, representing 11% of total sales for the quarter. These digital shipments included CyberStream products for several domestic and international satellite operators, and TRANsend products for a number of international operators, including Telewest's new video-on-demand service.
``We are very pleased with our sales and profitability in the first quarter, which is historically our weakest quarter,'' said Anthony J. Ley, Chairman, President and Chief Executive Officer. ``Cable operators continued to upgrade their networks to offer video-on-demand, high-speed Internet access, telephony and other advanced services. As the number of subscribers has grown, we are encouraged that our customers increasingly see our nodes and other fiber optic systems as a fast, flexible and economical way to scale up their networks.''
``In coming periods, 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 allow us to offer more complete solutions for cable operators, as well as expand our penetration into telco, satellite, wireless and other emerging broadband markets.''
On March 27, 2000, Harmonic announced that it had filed the joint proxy statement for a special meeting of Harmonic stockholders to be held on April 24, 2000. Harmonic's stockholders will vote on the proposed acquisition of the DiviCom business of C-Cube Microsystems, Inc. (Nasdaq: CUBE - news). If the transaction is approved, the closing is expected in the first week of May. 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.
A live Internet broadcast of Harmonic's first quarter conference call (2:00 P.M. Pacific/5:00 P.M. 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 500 people. For more information about Harmonic please visit the Company's website at www.harmonicinc.com.
This press release contains forward-looking statements regarding the continued upgrade of cable networks and continued industry spending, Harmonic's continued development of new fiber optic and digital systems, the expansion of Harmonic's sales and marketing efforts, expectations regarding the market impact of Harmonic's proposed acquisition of the DiviCom business of C-Cube Microsystems, and Harmonic's position as a leading supplier following the merger. Forward-looking statements involve a number of risks and uncertainties including, but not limited to, dependence on cable television and communications industry capital spending, in particular, that of AT&T, Harmonic's largest customer; regulatory developments; rapid technological change; the highly competitive nature of the broadband communications industry; the Company's ability to successfully develop, manufacture and gain widespread market acceptance of new products, in particular its digital TRANsend product line, CyberStream, and node products; dependence on the evolution of wireless and satellite broadband services; the timely completion of the acquisition of DiviCom; the successful integration of the products, customers, suppliers and employees of DiviCom and other factors more fully described in the Company's reports to the Securities and Exchange Commission, including but not limited to, the report on Form 10-K for the year ended December 31, 1999. Actual results may differ materially. The Company does not undertake to update any oral or written forward-looking statements that may be made by or on behalf of the Company.
Harmonic Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended
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March 31, April 2,
2000 1999
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Net sales $62,863 $30,263
Cost of sales 33,067 17,852
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Gross profit 29,796 12,411
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Operating expenses:
Research and development 6,018 3,694
Sales and marketing 7,271 5,180
General and administrative 2,584 1,770
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Total operating expenses 15,873 10,644
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Income from operations 13,923 1,767
Interest and other income, net 1,121 32
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Income before income taxes 15,044 1,799
Provision for income taxes 5,717 450
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Net income $ 9,327 $ 1,349
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Net income per share
Basic $ 0.30 $ 0.06
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Diluted $ 0.28 $ 0.05
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Weighted average shares
Basic 30,716 23,848
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Diluted 33,391 26,692
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Harmonic Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2000 1999
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(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 10,936 $ 24,822
Short-term investments 72,439 64,877
Accounts receivable, net 38,638 35,421
Inventories 42,868 35,310
Deferred income taxes 5,478 5,478
Prepaid expenses and other assets 4,109 3,792
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Total current assets 174,468 169,700
Property and equipment, net 18,710 14,931
Intangibles and other assets 985 1,062
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$ 194,163 $ 185,693
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 18,619 $ 18,946
Income taxes payable 6,094 2,265
Accrued liabilities 12,782 19,073
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Total current liabilities 37,495 40,284
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Other non-current liabilities 584 521
Stockholders' equity:
Common stock 150,412 148,582
Accumulated earnings (deficit) 5,535 (3,792)
Accumulated other comprehensive income 137 98
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Total stockholders' equity 156,084 144,888
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$ 194,163 $ 185,693
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Contact:
Harmonic Inc.
Robin N. Dickson, 408/542-2500 (Chief Financial Officer)
or
StreetConnect
Michael Newman, 408/542-2760 (Investor Relations |
