Today. Tho they don't look all that Great..:((
Harmonic Lightwaves, Inc. Announces First Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 14, 1998--Harmonic Lightwaves, Inc. (NASDAQ:HLIT) today announced results for the first quarter of 1998.
For the first quarter ending April 3, 1998, Harmonic Lightwaves reported net sales of $16.2 million compared to $19.0 million in the first quarter of 1997. The net loss for the first quarter of 1998 was $18.4 million or $1.60 per share on 11,475,000 shares outstanding, which includes a charge of $14.0 million or $1.22 per share for in-process technology resulting from the acquisition of New Media Communication Ltd. on January 5, 1998. This compares to net income of $2.1 million or $0.18 per share on 11,568,000 shares outstanding in the first quarter of 1997.
Revenue declined from levels reported in the first quarter of 1997 due to low shipments to international cable customers caused primarily by severe weather conditions in eastern Canada and the uncertain financial climate in Asia. International sales were down approximately 47% compared to the same period in 1997. Weak international sales, as well as changes in product mix and reduced production volumes, also contributed to a decline in the Company's gross margin.
In addition, the Company provided for inventory adjustments in the first quarter of 1998 following the introduction of several new fiber optic products, which are expected to ship in the second quarter, and an increased focus on new market opportunities. The Company also increased its accounts receivable reserves, principally in response to slow payments from certain Asian distributors. These adjustments resulted in a charge of approximately $1.8 million or $0.16 per share and are included in the loss from operations.
"We are disappointed by the softer than expected international sales and lower margins," said Anthony J. Ley, Chairman, President and Chief Executive Officer. "However, we see new opportunities emerging in certain international markets, including a likely resumption of spending in Canada. We also are increasingly confident that capital spending by the domestic cable companies will increase during 1998. In fact, domestic sales increased significantly in the first quarter, up 58% from the same period in 1997 and up 9% from the fourth quarter.
"Harmonic is positioning itself to capitalize on the anticipated upturn in domestic cable industry spending with the introduction of its next-generation fiber optic products, including the new PWRLink II transmitters and PWRBlazer Scaleable Node. In coming periods, we expect to announce new applications for our optical technology.
"We continue to move towards our goal of becoming a supplier of broadband access systems to a number of telecommunications markets. We expect to make the first major shipments of our new TRANsend(TM) digital products in the near future and our New Media operation is now deploying its next generation systems in the broadband satellite, wireless and cable modem markets."
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.
About Harmonic Lightwaves
Harmonic Lightwaves, Inc. designs, manufactures and markets digital- and lightwave-based communications systems that deliver video, audio and data over hybrid fiber/coax (HFC), satellite and wireless networks. Harmonic's advanced solutions enable cable television and other network operators to provide a range of broadcast and interactive broadband services that include high-speed Internet access and video-on-demand.
Headquartered in Sunnyvale, Calif., Harmonic operates its New Media Communication subsidiary and an R&D facility in Israel, along with a sales and support center in the United Kingdom. Harmonic is ISO 9001-certified and employs more than 275 people.
This press release contains forward-looking statements regarding anticipated levels of capital spending by cable operators in the U.S. and abroad, new products, new markets and future operating results. 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, 1997, and the reports on Form 10-Q filed during 1997. Actual results may differ materially. The Company does not undertake to update any oral or written forward-looking statements that may be made by or on behalf of the Company. -0- Note to Editors: Product and company names used here are trademarks or registered trademarks of their respective companies. -0- *T
Harmonic Lightwaves, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data) (Unaudited)
Three months ended
April 3, March 28, 1998 1997
Net sales $ 16,204 $ 19,033
Cost of sales 11,114 10,042
Gross profit 5,090 8,991
Operating expenses: Research and development 3,423 2,791
Sales and marketing 4,072 2,863
General and administrative 2,148 1,110
Acquired in-process
technology charge 14,000 --
Total operating expenses 23,643 6,764
Income (loss) from operations (18,553) 2,227
Interest and other
income, net 188 241
Income (loss) before
income taxes (18,365) 2,468
Provision for income taxes -- 370
Net income (loss) $(18,365) $ 2,098
Net income (loss) per share
Basic $ (1.60) $ 0.21
Diluted $ (1.60) $ 0.18
Weighted average shares
Basic 11,475 10,210
Diluted 11,475 11,568
Harmonic Lightwaves, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
April 3, December 31, 1998 1997
(Unaudited)
Assets Current assets: Cash and cash equivalents $ 12,483 $ 13,670
Accounts receivable, net 14,397 16,458
Inventories 16,269 15,474
Prepaid expenses and other assets 1,885 1,774
Total current assets 45,034 47,376
Note receivable - 1,300
Property and equipment, net 10,070 10,077
Intangibles and other assets 1,571 134
$ 56,675 $ 58,887
Liabilities and stockholders' equity Current liabilities: Accounts payable $ 4,981 $ 3,708
Accrued liabilities 5,827 4,896
Total current liabilities 10,808 8,604
Other liabilities 420 352
Stockholders' equity (deficit) Common stock 69,828 55,927
Accumulated deficit (24,384) (6,019) Currency translation 3 23
Total stockholders' equity 45,447 49,931
$ 56,675 $ 58,887
CONTACT:
Harmonic Lightwaves
Robin N. Dickson, 408/542-2500 (CFO)
or
Fi.Comm
Michael Newman, 408/542-2760 (Investor Relations) |
