Harmonic Announces Results for Q4 and Full Year 2011

Posted by Joe Zaller
Feb 01 2012

Harmonic announced that its net revenue for the fourth quarter of 2011 was $143.6m, an increase of 4% versus the same period last year, and an increase of 3% versus the previous quarter.

International revenue represented 57% of sales in the quarter.  Harmonic’s top 10 customers contributed 34% of total revenue in the quarter, and no single customer represented more than 10% of sales.

GAAP net income for the quarter was $4.3m, compared to a net loss of $13.7m during the same period last year, and net income of $3.5m last quarter.

On a non-GAAP basis, net income for the quarter was $14m, compared to non-GAAP income of $12.5m for the same period of 2010, and non-GAAP net income of $12.7m last quarter.

GAAP gross margins in the quarter were 47%, up from 44% last year, and up 1% versus the previous quarter. Operating margins were 5%, versus -2% last year, and 3% last quarter.

On a non-GAAP basis, gross margins were 51% for the quarter, comparable with both the same period a year ago and the previous quarter. Non-GAAP operating margins were 13%, comparable to last year, and up from 12% last quarter.

 

Full Year Results

For the full year 2011, GAAP net revenue was $549.3m, up from $423.3 million for 2010, Pro forma annual revenue, which includes revenue from Omneon and certain deferred revenue excluded in GAAP results for both years, was $551.4m for 2011, up 8% from $509m for 2010.

 

Business Outlook
Harmonic anticipates net revenue to be in the range of $132m to $142m for the first quarter of 2012, which the company say is historically its slowest of the year. GAAP gross margins and operating expenses for the first quarter of 2012 are expected to be in the range of 45% to 47% and $61 million to $63 million, respectively. Non-GAAP gross margins and operating expenses for the first quarter of 2012, which will exclude charges for stock-based compensation and the amortization of intangibles, are anticipated to be in the range of 50% to 52% and $55 million to $57 million, respectively.

 

“We delivered record revenue for the fourth quarter and the full year of 2011,” said Patrick Harshman, president and chief executive officer of Harmonic. “During the year, our growth was primarily driven by increased video processing wins across our expanding global customer base, with video processing revenue up 17% and international revenue up 14% on a pro forma basis. Our successful integration of Omneon also extended our business into new markets, driving significant growth in our broadcast and media revenue, up 17% on a pro forma basis.

 

“We move into 2012 with broad technological and market leadership, and proven expertise in enabling our global customers to produce and deliver compelling new high-definition, on-demand and Internet-based video services. We believe the global proliferation of video content and media outlets, along with increasing demand for higher quality video in every format delivered over bandwidth constrained networks, plays into our core strengths.”

 

 

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Related Content:

Press Release: Harmonic Announces Fourth Quarter and Year End 2011 Results

Harmonic Q4 2011 Analyst Conference Call Transcript

Harmonic Q4 and Full Year 2011 Presentation to Analysts

Previous Quarter: Harmonic Reports Strong Q3 2011 Results, Driven by Strong Performance in Americas

Previous Year: Harmonic Announces Q4 and Full Year 2010 Results

 

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