This is the only statement of earnings/revenue from Divicom in HLIT's 10Q. It's not detailed enough. Over the 2 prior Qs, Divicom's revenue had been flat, at a little over $51M. I thought this lack of growth was due to the loss of Tandberg as a customer(after they purchased NDS), and Divicom's offer to up-grade MV-40 encoder customers to MV-45, free of charge. In Q1, 2000, this says Divicom did $39.4M. It doesn't say if there were significant changes to revenue recognition, if they took reserves to pay for any remaining MV-40 upgrades, currency adjustments, or anything else. Divicom's sales should have somewhere in the high $40 something million. Where did the missing $8M go? With EchoStar and DirecTV rolling out locale channels during the Q, they shouldn't have had a problem. Did HLIT stack the deck for Q2? Is this why C-Cube did not report Divicom's sales???????????????????????
freeedgar.com
NOTE 6 - SUBSEQUENT EVENT
On May 3, 2000, the Company completed its merger with C-Cube Microsystems Inc.
("C-Cube") pursuant to the terms of an Agreement and Plan of Merger and
Reorganization (the "Merger Agreement") dated October 27, 1999. Under the terms
of the Merger Agreement, C-Cube spun off its semiconductor business as a
separate publicly traded company prior to the closing. C-Cube then merged into
Harmonic and Harmonic therefore acquired C-Cube's DiviCom business, which
provides MPEG-2 encoding products and systems for digital video.
DiviCom had unaudited net sales of $185.5 million and unaudited net income of
$20.6 million for the year ended December 31, 1999. For the quarter ended March
31, 2000 DiviCom had unaudited net sales of $39.4 million and unaudited net
income of $1.6 million compared to unaudited net sales of $38.2 million and
unaudited net income of $3.2 million for the quarter ended March 31, 1999.
NOTE 6 - SUBSEQUENT EVENT
On May 3, 2000, the Company completed its merger with C-Cube Microsystems Inc.
("C-Cube") pursuant to the terms of an Agreement and Plan of Merger and
Reorganization (the "Merger Agreement") dated October 27, 1999. Under the terms
of the Merger Agreement, C-Cube spun off its semiconductor business as a
separate publicly traded company prior to the closing. C-Cube then merged into
Harmonic and Harmonic therefore acquired C-Cube's DiviCom business, which
provides MPEG-2 encoding products and systems for digital video.
DiviCom had unaudited net sales of $185.5 million and unaudited net income of
$20.6 million for the year ended December 31, 1999. For the quarter ended March
31, 2000 DiviCom had unaudited net sales of $39.4 million and unaudited net
income of $1.6 million compared to unaudited net sales of $38.2 million and
unaudited net income of $3.2 million for the quarter ended March 31, 1999. |
