Monday, Harmonic Inc. (HLIT) reported a swing to loss for the first quarter of 2009 from the same period last year on charges, as well as revenues that declined over 22% during the three-month period. The company also provided its revenue outlook for the second quarter.
The Sunnyvale, California-based company posted a first quarter net loss of $18.84 million or $0.20 per share, compared to a profit of $13.35 million or $0.14 per share in the year-ago period.
On an adjusted basis, non-GAAP net income for the quarter was $4.05 million or $0.04 per share, compared to a profit of $16.55 million or $0.17 per share in the prior year.
On average, 7 analysts polled by Thomson Reuters expected the company to earn $0.05 per share for the first quarter. Analysts' estimates typically exclude special items.
Sales totaled $67.76 million, down 22.4% from $87.28 million a year ago. The company attributed the decline in sales to the continued weakness in the customer order rate across many different markets throughout most of the first quarter. Bookings were approximately $57 million, compared to $70 million in the first quarter last year. Analysts anticipated sales of $75.17 million for the quarter.
For the first quarter, the company reported charges totaling $11.9 million, which were primarily related to the acquisition of Scopus, including inventory provisions arising from discontinued Scopus products, transaction fees and expenses, and severance costs. Harmonic also incurred a first quarter non-cash tax charge of $6.6 million to adjust the value of certain deferred tax assets as a result of recent changes in California tax law.
Gross profit dropped to $25.39 million from $42.28 million. Operating expenses totaled $36.18 million, up from $30.80 million reported for the first quarter last year.
Research and development expenses increased to $14.50 million from $13.19 million, while selling, general and administrative costs rose to $21.29 million from $17.45 million a year ago.
Patrick Harshman, president and chief executive officer of the company said, "Heading into the second quarter, we are seeing some signs of improving customer spending as well as positive customer response to our newest products."
Additionally, the company provided its revenue guidance for the second quarter, expecting net sales in the range of $72.0 to $78.0 million. GAAP gross margins and operating expenses are expected to be in a range of 42% to 44% and $38.0 to $39.0 million, respectively.
Non-GAAP gross margins and operating expenses are anticipated to be in a range of 47% to 49% and $33.5 to $34.5 million, respectively.
Street analysts currently expect earnings of $0.07 per share for the second quarter on revenues of around $80.35 million.
HLIT ended Monday's regular trading at $7.73, up 1.58% or $0.12, on a volume of 0.92 million shares on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.