Harmonic Lowers Expectations for Q1 2012 as Euro Demand Slows

Posted by Joe Zaller
Apr 10 2012

Harmonic said today that it expects its revenue for the first quarter of 2012 to be in the range of $125m to $128m, lower than the guidance of $132m to $142m the company issued last quarter

Harmonic attributed the revenue shortfall to a slower than expected order rate in the early part of the quarter and a decline in demand from European customers.  The company also said that, a higher percentage of its first quarter bookings were associated with professional services and support agreements that will be recognized as revenue in future periods.

The company also lowered guidance for its Q1 2012 non-GAAP gross margins, which the company says will be in the range of 46% to 48%, compared to previously issued guidance of 50% to 52%. Non-GAAP operating expenses are expected to be in line with previous guidance.

On a more positive note, Harmonic’s preliminary total bookings for the quarter were approximately $142.5m, up 8% from the first quarter of 2011.

 “The first quarter was characterized by stronger-than-expected demand for our new HectoQAM cable edge platform, [which] initially carry lower gross margins, but are expected to enable future sales of QAM software licenses as network traffic increases” said Harmonic CEO Patrick Harshman.  “The combination of lower digital video processing sales in Europe and increased cable edge sales impacted our gross margins in the first quarter. Looking ahead, our bookings growth and expanding footprint lead us to expect sequential growth in the second quarter and, more generally, point to the fundamental strength of our business.”

Harmonic will reports its full results on April 24, 2012.



Related Content:

Press Release: Harmonic Announces Preliminary First Quarter 2012 Results

Previous Quarter: Harmonic Announces Results for Q4 and Full Year 2011

Harmonic Q4 2011 Analyst Conference Call Transcript

Harmonic Q4 and Full Year 2011 Presentation to Analysts


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