any thoughts on this q?
Harmonic Announces Third Quarter Results
Continued Sequential Revenue Growth and Cost Reductions
SUNNYVALE, Calif., Oct 24, 2001 (BUSINESS WIRE) -- Harmonic Inc. (Nasdaq: HLIT chart, msgs) today announced its results for the quarter ended September 28, 2001.
For the third quarter of 2001, Harmonic reported net sales of $57.5 million, up 17% from $49.3 million in the previous quarter and down from $68.2 million for the third quarter of 2000. Domestic sales represented 61% of total sales for the third 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 $39.7 million, up 39% from divisional net sales of $28.5 million in the previous quarter. During the quarter, the Company increased shipments of its new MV50 encoder to major North American and international satellite television operators and delivered its NSG product to new cable customers for video-on-demand applications. Harmonic also commenced the first deployment of the MV50 to enable a telco customer to deliver video-over-DSL.
Harmonic's Broadband Access Networks (BAN) division, which designs, manufactures and markets fiber optic products for broadband cable networks, had net sales of $17.8 million for the third quarter of 2001, compared to divisional net sales of $20.8 million in the previous quarter. The decline reflects the continuation of weak market conditions in transmission network upgrades in the cable industry. At the same time, Harmonic continued development of its next-generation optical products and initiated a trial of its new CURBswitch product for a fiber-to-the-curb network at a major cable operator.
"Our revenue is being driven by growing demand for our new products and penetration into new markets," said Anthony J. Ley, Chairman, President and Chief Executive Officer. "We see significant opportunities with satellite operators worldwide and we continue to participate in new customer initiatives, such as video-on-demand deployments and fiber-to-the-curb trials, for cable TV. We are also very excited about the long-term potential of video-over-DSL for telco customers."
"In light of near-term economic uncertainty and its impact on the capital spending of many of our major customers, we have taken additional steps to reduce operating costs. During the third quarter, we continued to streamline our product offerings and reassessed our facilities requirements. In parallel, we are aligning our business infrastructure by a further reduction in our workforce to approximately 700 employees. The Company had 950 employees worldwide a year ago. With our exciting new products and expansion into new markets, we believe that Harmonic will emerge well-positioned from the current economic downturn," said Ley.
The financial effect of these measures includes a charge in the third quarter of $23.1 million for costs of facilities in excess of projected needs. A charge of $29.5 million was also recorded for provisions related to excess inventory and fixed assets. Severance costs of approximately $1.0 million related to the announced reduction in force will be recorded in the fourth quarter.
Excluding the effects of non-cash purchase accounting adjustments for amortization of goodwill and other intangibles, and the facilities, inventory and fixed asset charges discussed above, the net loss for the third quarter of 2001 was $11.9 million or $0.20 per share on 58,908,000 basic weighted average shares outstanding, compared to a net loss of $5.5 million or $0.10 per diluted share on 57,724,000 basic weighted average shares outstanding for the same period of 2000. Including the adjustments for amortization of goodwill and other intangibles and the facilities, inventory and fixed asset charges, the net loss was $68.8 million or $1.17 per share for the third quarter of 2001.
Someone sure was disappointed.... |
