Harmonic Announces Fourth Quarter and Year End Results
Continued Revenue Growth
Positive Earnings For the Quarter
SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 22, 2004--Harmonic Inc. (Nasdaq:HLIT - News) today announced its results for the quarter and year ended December 31, 2003.
For the fourth quarter of 2003, the Company reported net sales of $56.3 million, up from $47.3 million in the previous quarter and from $39.3 million in the fourth quarter of 2002. For the full year 2003, the Company had net sales of $182.3 million, compared to $186.6 million for 2002.
The sequential revenue growth for the fourth quarter reflected increased shipments to a number of domestic and international cable customers. Domestic sales represented 70% of total sales for the fourth quarter of 2003, compared to 71% in the previous quarter.
The Company's CS division, which designs, manufactures and markets digital headend systems for a number of markets, had divisional net sales of $33.2 million, up from $29.0 million in the previous quarter. The BAN division, which designs, manufactures and markets fiber optic products primarily for broadband cable networks, had divisional net sales of $23.1 million, up from $18.3 million in the previous quarter.
"We are pleased with our continued revenue growth and achieving profitability in the fourth quarter," said Anthony J. Ley, Chairman, President and Chief Executive Officer. "We see intensifying competition between cable and satellite operators to offer more channels of digital video and new services, such as video-on-demand and high-definition television."
"In the fourth quarter, we continued to focus on expense control and on improving our operating efficiencies. Our gross margins improved significantly from a year ago, reflecting the success of our new products and increased volume. We are also very pleased with the completion of our public offering during the quarter, which strengthened our balance sheet and helps to position us for future growth. While we expect the usual seasonal slowdown in the first quarter, we are excited about our prospects in 2004 and beyond."
GAAP net income for the fourth quarter of 2003 was $1.4 million, or $0.02 per share, compared to a net loss of $13.8 million, or $0.23 per share, for the same period of 2002. For the full year 2003, the GAAP net loss was $29.4 million, or $0.47 per share. The GAAP net income for the fourth quarter includes a benefit of $2.2 million from the reversal of bad debt reserves following the sale of the Company's pre-petition trade claims against Adelphia Communications. The Company also recorded a benefit of $1.4 million relating to the sale of previously reserved inventory.
On a non-GAAP basis, excluding the benefits described above and the effects of non-cash accounting charges for the amortization of intangibles, the non-GAAP net income for the fourth quarter of 2003 was $1.2 million, or $0.02 per share. This compares to a non-GAAP net loss of $11.5 million, or $0.19 per share, for the same period of 2002. For the full year 2003, the non-GAAP net loss was $18.8 million, or $0.30 per share.
At the end of 2003, the Company had cash, cash equivalents and short-term investments of $112.6 million, compared to $49.2 million at the end of 2002. During the fourth quarter, the Company raised net proceeds of approximately $71 million in a public offering and also generated cash from operations of approximately $8 million.
Harmonic's conference call regarding its fourth quarter 2003 results will be held today at 2:00 p.m. Pacific (5:00 p.m. Eastern). A listen-only broadcast of the conference call can be accessed on the Company's website at: www.harmonicinc.com or by calling +1-415-908-4707 (Reservation No. 21180556). The replay will be available at the same website address or by calling +1-402-977-9140 (Reservation No. 21180556). |
