Harmonic (HLIT) saw its loss narrow to $24.03 million, or $0.30 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $25.18 million, or $0.33 a share. On an adjusted basis, net loss for the quarter stood at $11.20 million, or $0.14 a share compared with a net profit of $6.73 million, or $0.08 a share in the last year period.
Revenue during the quarter went up marginally by 1.36 percent to $82.94 million from $81.83 million in the previous year period. Gross margin for the quarter contracted 96 basis points over the previous year period to 48.72 percent. Operating margin for the quarter stood at negative 25.51 percent as compared to a negative 25.36 percent for the previous year period.
Operating loss for the quarter was $21.16 million, compared with an operating loss of $20.76 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $11.39 million compared to operating profit of $9.57 million in prior year period.
"Our first quarter results were impacted by softer than expected service provider spending in the final month of the quarter," said Patrick Harshman, Harmonic’s president and chief executive officer. "Looking ahead, our opportunity pipeline gives us confidence that our Video business segment will rebound and deliver on our targeted year-over-year growth. In our Cable Edge segment, first quarter CableOS trials and deployments were executed as planned and we continue to anticipate volume purchases in the second half of the ye
Operating cash flow remains negativeHarmonic has spent $3.10 million cash to meet operating activities during the quarter as against cash outgo of $5.41 million in the last year period. Cash flow from investing activities was $3.68 million for the quarter as against cash outgo of $64.80 million in the last year period.
The company has spent $1.22 million cash to carry out financing activities during the quarter as against cash inflow of $0.68 million in the last year period.
Cash and cash equivalents stood at $55.29 million as on Mar. 31, 2017, down 2.99 percent or $1.70 million from $57 million on Mar. 31, 2016.
Working capital drops significantly
Harmonic has witnessed a decline in the working capital over the last year. It stood at $50.92 million as at Mar. 31, 2017, down 46.16 percent or $43.65 million from $94.57 million on Mar. 31, 2016. Current ratio was at 1.36 as on Mar. 31, 2017, down from 1.58 on Mar. 31, 2016.
Days sales outstanding went up to 76 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding was almost stable at 42 days for the quarter, when compared with the last year period.
Debt remains almost stableTotal debt of Harmonic remained almost stable for the quarter at $125.14 million, when compared with the last year period. Total debt was 23.57 percent of total assets as on Mar. 31, 2017, compared with 20.43 percent on Mar. 31, 2016. Debt to equity ratio was at 0.50 as on Mar. 31, 2017, up from 0.40 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
