Actually, there were several good things said. ie reduced costs and cash in the bank.
Harmonic Announces Second Quarter Results; Strong New Product Sales and Reduced Operating Expenses
SUNNYVALE, Calif., Jul 25, 2001 (BUSINESS WIRE) -- Harmonic Inc. (Nasdaq: HLIT)
today announced its results for the quarter ended June 29, 2001.
For the second quarter of 2001, Harmonic reported net sales of $49.3 million, up
22% from $40.3 million in the previous quarter and down from $80.0 million for
the second quarter of 2000. Domestic sales represented 77% of total sales for
the second quarter of 2001.
The Convergent Systems (CS) division, which designs, manufactures and markets
digital headend systems for a variety of networks, had net sales of $28.5
million, up 33% from divisional net sales of $21.5 million in the previous
quarter. During the second quarter, the Company made its first volume shipments
of its next-generation digital systems, including the recently introduced NSG
for video-on-demand and MV50 encoder.
The Broadband Access Networks (BAN) division, which designs, manufactures and
markets fiber optic products for broadband cable networks, had net sales of
$20.8 million for the second quarter of 2001, up from divisional net sales of
$18.8 million in the previous quarter. Despite continued weakness in spending on
transmission network infrastructure by the cable industry, the sequential
increase in BAN sales reflected Harmonic's increased penetration into major
domestic cable operators. The Company also introduced its new GIGALight system,
a cost-effective DWDM solution for transporting multiple Gigabit Ethernet, SONET
and ATM data streams over a single fiber, supporting such digital transport
applications as video-on-demand, high-speed data and IP telephony.
"We are very pleased with our strong execution and improved operating
performance in the second quarter, despite a continued weak capital spending
environment for many of our customers," said Anthony J. Ley, Chairman, President
and Chief Executive Officer. "During the second quarter, we saw volume shipments
of our new products, and sales to established customers such as Cablevision, Cox
Communications and DIRECTV, as well as new customers like WINfirst and Altrio
Communications."
"We have also succeeded in reducing our operating costs while enhancing our
competitive position as we continue developing and rolling out groundbreaking
new products. In the second half of 2001, we anticipate increased revenue,
driven by growing interest in our next-generation products and a number of
promising new satellite and broadband opportunities."
Excluding non-cash purchase accounting adjustments for amortization of goodwill
and other intangibles, the pro forma net loss for the second quarter of 2001 was
$30.2 million or $0.52 per share on 58,177,000 basic weighted average shares. As
discussed in its April 25, 2001 press release, the Company completed a review of
its facilities requirements during the second quarter, and recorded a charge of
$7.0 million related to future real estate commitments in excess of projected
needs. In addition, the Company incurred severance and other costs of $1.4
million during the second quarter. If these non-recurring charges were excluded,
the pro forma net loss would have been $21.8 million or $0.37 per share. For the
same period of 2000, the Company reported pro forma net income of $6.6 million
or $0.13 per share on 50,935,000 diluted weighted average shares. On a GAAP
basis, the net loss was $34.1 million or $0.59 per share for the second quarter
of 2001.
As of June 29, 2001, the Company had cash, cash equivalents and short-term
investments of $61.9 million. During the first half of 2001, Harmonic made
capital investments of approximately $23 million, primarily related to building
leasehold improvements to accommodate the relocation of former DiviCom employees
to its Sunnyvale campus and implementation of a new enterprise resource planning
(ERP) system. Because these projects are essentially complete, the Company
expects capital expenditures to be significantly lower in the second half of
2001, in an anticipated range of $5 million to $10 million.
A listen-only Internet broadcast of Harmonic's conference call regarding its
second quarter 2001 results will be available today (2:00 p.m. Pacific/5:00 p.m.
Eastern) at www.harmonicinc.com under "Investor Relations" or by calling
800-633-8741, Reservation No. 17636774. Until July 27, 2001, a replay will also
be available either at www.harmonicinc.com or by calling 858-812-6440
(Reservation No. 17636774). |
