UPDATED: <A> Harmonic Lightwaves 4Q Net 5c A Diluted Share Vs 21c
(Anyone ever write that HLIT SI article?)
From Company:
Harmonic Lightwaves Announces Fourth Quarter and Year-End Results
SUNNYVALE, Calif.--Harmonic Lightwaves, Inc. (NASDAQ:HLIT) today
announced its sales and earnings for the quarter and year ended
December 31, 1997.
For 1997, Harmonic Lightwaves reported net sales of $74.4 million, an
increase of 22% from $60.9 million in 1996. Net income for 1997 was
$4.9 million or $0.43 per share, compared to $5.9 million or $0.52 per
share for 1996.
For the fourth quarter of 1997, Harmonic Lightwaves reported net sales
of $17.4 million, compared to $19.5 million in the fourth quarter of
1996.
Net income for the fourth quarter was $0.6 million or $0.05 per share
on 11,379,000 shares outstanding, compared to $2.4 million or $0.21
per share on 11,552,000 shares outstanding for the same period of
1996.
The Company experienced lower than expected sales to both domestic and
international cable customers as a result of reduced levels of cable
industry capital spending in the second half of 1997.
During the fourth quarter, Harmonic Lightwaves continued to extend the
scope and performance of its fiber optic product line, including its
new scalable PWRBlazer optical node receiver. The Company also
shipped its first digital product, its TRANsend QAM Modulator, and
introduced its Cable Modem Termination System.
In cooperation with CableLabs, the Company has been working with
Panasonic and Daewoo, its Cable Modem Partners, and other consumer
electronics vendors to establish the DOCSIS standard for two-way cable
modem transmission. Harmonic Lightwaves was the first company to
publicly demonstrate interoperability between its headend systems and
independently developed cable modems, including those from Toshiba,
which each use entirely different chipsets.
On January 5, 1998, Harmonic Lightwaves completed its acquisition of
New Media Communication Ltd., a leader in high-speed data delivery
software and hardware for all broadband platforms, including cable,
satellite and LMDS/MMDS wireless. During 1998, the Company expects
its TRANsend and New Media products to broaden its customer base and
make a growing contribution to sales.
Harmonic Lightwaves issued 1,037,911 shares of its common stock to the
former shareholders of New Media. The acquisition of New Media will
be accounted for under the purchase method of accounting. The Company
expects that a substantial portion of the acquisition cost will be
recognized as a one-time charge for in-process technology in the first
quarter of 1998.
The Company also expects that seasonally low sales to domestic cable
customers, combined with the inclusion of New Media's operations, will
result in an operating loss for the Company in the first quarter of
1998.
"In 1997, we continued to make significant progress in spite of
difficult market conditions at home and abroad in the second half of
the year," said Anthony J. Ley, Chairman, President and Chief
Executive Officer. "We strengthened our operations and sales force,
and made a significant acquisition in preparation for future growth in
broadband cable, wireless and satellite systems. We are positioned to
become a leading solutions provider for interactive video, audio and
data communications across multiple networks."
About Harmonic Lightwaves, Inc.
Harmonic Lightwaves, Inc. designs, manufactures and markets
communication systems for delivering lightwave and digitally based
video, audio and data via hybrid fiber/coax, satellite and wireless
networks. These products enable cable television and other network
operators to provide broadcast and interactive, broadband services,
such as Internet access and video-on-demand.
Headquartered in Sunnyvale, Calif., Harmonic sells its products
worldwide and maintains a sales and support center in the United
Kingdom. The Company's New Media Communication subsidiary and one of
Harmonic's R&D facilities are based in Israel. Harmonic is ISO
9001-certified and employs over 250 people. For more information,
visit the Company's web site at www.harmonic-lightwaves.com .
This press release contains forward-looking statements regarding new
products, new markets, emerging industry standards, future operating
results and the acquisition of New Media Communication.
Forward-looking statements involve a number of risks and uncertainties
including, but not limited to, dependence on cable television and
communications industry capital spending; regulatory developments;
rapid technological change; the highly competitive nature of the
telecommunications industry; the Company's ability to successfully
develop, manufacture and gain market acceptance of new products, in
particular its digital TRANsend products; the Company's acquisition of
New Media Communication, in particular its ability to integrate the
two companies' operations and New Media's dependence on the evolution
of wireless and satellite broadband services; and other factors more
fully described in the Company's reports to the Securities and
Exchange Commission, including but not limited to, the report on Form
10-K for the year ended Dec. 31, 1996, and the reports on Form 10-Q
filed during 1997. Actual results may differ materially.
Harmonic Lightwaves, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three months ended Year ended
(Unaudited)
-------- -------- -------- --------
Dec. 31, Dec. 31 Dec. 31 Dec. 31,
1997 1996 1997 1996
-------- -------- -------- --------
Net sales $ 17,350 $ 19,497 $ 74,442 $ 60,894
Cost of sales 9,371 10,561 39,837 33,163
-------- -------- -------- --------
Gross profit 7,979 8,936 34,605 27,731
-------- -------- -------- --------
Operating expenses:
Research and
development 3,157 2,689 11,676 9,237
Sales and marketing 3,692 2,859 13,599 9,827
General and
administrative 1,227 1,138 4,824 3,463
-------- -------- -------- --------
Total operating expenses 8,076 6,686 30,099 22,527
-------- -------- -------- --------
Income from operations (97) 2,250 4,506 5,204
Interest and other income
(expense), net 168 281 682 1,025
-------- -------- -------- --------
Income before income taxes 71 2,531 5,188 6,229
Provision for income taxes (509) 126 259 311
-------- -------- -------- --------
Net income $ 580 $ 2,405 $ 4,929 $ 5,918
======== ======== ======== ========
Basic net income per
share $ 0.06 $ 0.24 $ 0.48 $ 0.59
======== ======== ======== ========
Diluted net income per
share $ 0.05 $ 0.21 $ 0.43 $ 0.52
======== ======== ======== ========
Average number of
shares outstanding 10,410 10,157 10,345 10,106
======== ======== ======== ========
Average number of shares
outstanding assuming
dilution 11,379 11,552 11,523 11,474
======== ======== ======== ========
Harmonic Lightwaves, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 31, Dec. 31,
1997 1996
-------- --------
Assets
Current assets:
Cash and cash equivalents $ 13,670 $ 16,410
Accounts receivable, net 16,458 12,643
Inventories 15,474 14,782
Prepaid expenses and other assets 1,774 1,315
-------- --------
Total current assets 47,376 45,150
Note receivable 1,300 ----
Property and equipment, net 10,077 8,751
Other assets 134 732
-------- --------
$ 58,887 $ 54,633
======== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 3,708 $ 5,604
Accrued liabilities 4,896 5,225
-------- --------
Total current liabilities 8,604 10,829
Other liabilities 352 163
Stockholders' equity (deficit)
Common stock 55,927 54,589
Accumulated deficit (6,019) (10,948)
Currency translation 23 ---
-------- --------
Total stockholders' equity 49,931 43,641
-------- --------
$ 58,887 $ 54,633
======== ======== |
