Harmonic Announces Anticipated Fourth Quarter Results and Management Change in Broadband Access Networks Division
SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 21, 2000--Harmonic Inc. (NASDAQ:HLIT) today announced that it expects to report revenue of approximately $50 million to $55 million for the fourth quarter ending December 31, 2000. Excluding purchase accounting adjustments for such items as amortization of goodwill and other intangibles, the Company expects a pro forma net loss for the quarter of approximately $0.20 to $0.30 per share. The Company plans to announce its complete fourth quarter results on January 24, 2001.
Harmonic's Broadband Access Networks (BAN) division, which designs, manufactures and markets fiber optic products used extensively in broadband cable networks, expects revenue of approximately $25 million to $27 million for the quarter, compared to divisional revenue of $40.4 million in the previous quarter. In addition to the previously announced hold on shipments to AT&T Broadband, certain other customers have delayed anticipated orders or given the Company instructions to make no further shipments for the balance of the year.
Harmonic also announced that Patrick Harshman, currently Vice President of Marketing for the BAN division, will assume responsibilities as President of the BAN division. He replaces Kirk Flatow, who plans to leave Harmonic at the end of the year.
The Company anticipates that the Convergent Systems (CS) division, which designs, manufactures and markets digital headend systems for a variety of broadband networks, expects revenue of approximately $25 million to $28 million, compared to divisional revenue of $27.8 million in the previous quarter.
"Many of our customers are reviewing their upgrade and build plans in the light of more difficult conditions in the capital markets," said Anthony J. Ley, Chairman, President and Chief Executive Officer. "Because of these recent developments, we are actively evaluating our plans for 2001 and expect to provide more detailed guidance when we report our complete fourth quarter results on January 24."
"We currently face challenging market conditions and recognize that many of our customers' spending plans are under review. On the other hand, we believe the very positive reception that our new products received at the recent Western Show validates our long-term product development strategy and industry leadership. We continue to be well positioned for a rebound in capital spending by domestic cable and satellite operators."
A live Internet broadcast of Harmonic's conference call regarding its anticipated fourth quarter results (2:00 P.M. Pacific/5:00 P.M. Eastern) will be available today at www.harmonicinc.com under "Investor Relations" or by calling 800-263-9160. Until December 29, 2000, a replay will also be available either at www.harmonicinc.com or by calling 800-633-8284 (reservation number: 17344467).
About Harmonic Inc.
Harmonic is a leading provider of innovative broadband solutions that deliver video, voice and data to communications providers around the world. Harmonic's technically advanced fiber optic, digital video and IP data delivery systems enable network operators to provide a range of interactive and advanced digital services that include high-speed Internet access, telephony, digital video, HDTV, video and audio streaming, and video-on-demand.
Headquartered in Sunnyvale, Calif., Harmonic employs approximately 1000 people and operates more than 15 R&D and sales & system integration centers globally. Harmonic's customer base includes the world's largest communications providers. Harmonic's stock is traded on the Nasdaq stock market under the symbol "HLIT." For more information, see the company's website at www.harmonicinc.com.
The anticipated results described in the above paragraphs constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risks and uncertainties which would cause actual results to differ materially from those projected, including final determination of revenue, actual costs and expenses incurred during the quarter and decisions regarding reserves and allowances made in the normal course of the accounting close for the quarter and year. This release contains other forward-looking statements, including statements concerning capital spending by customers, the review of plans by customers, the reception given to the Company's new products, our review of our own plans for 2001, and Patrick Harshman's appointment as President of the BAN division. These forward-looking statements are also subject to risks and uncertainties which would cause actual results to differ materially from those projected. Those risks include competitive conditions, market acceptance of new or existing products, unpredictable sales cycles, cable and satellite industry capital spending, and difficulties associated with integrating operations in a timely manner. Additional risks are detailed in the Company's filings with the Securities and Exchange Commission, including its 1999 Annual Report on Form 10-K and 10-K/A and Quarterly Report on Form 10-Q for the quarter ended September 29, 2000. The Company may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and its reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.
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