Harmonic Inc (HLIT) saw its loss widen to $10.44 million, or $0.13 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $7.20 million, or $0.08 a share. On the other hand, adjusted net income for the quarter stood at $6.73 million, or $0.08 a share compared with $0.57 million or $0.01 a share, a year ago. Revenue during the quarter surged 30.60 percent to $113.10 million from $86.60 million in the previous year period. Gross margin for the quarter contracted 334 basis points over the previous year period to 51.01 percent. Operating margin for the quarter stood at negative 14.35 percent as compared to a negative 7.35 percent for the previous year period.
Operating loss for the quarter was $16.23 million, compared with an operating loss of $6.36 million in the previous year period.
However, the adjusted operating income for the quarter stood at $9.57 million compared to $0.96 million in the prior year period. At the same time, adjusted operating margin improved 735 basis points in the quarter to 8.46 percent from 1.11 percent in the last year period.
“In 2016, we made significant progress with our Video operating segment as we continued our transition to software based products and services and completed the integration of Thomson Video Networks,” said Patrick Harshman, Chief executive officer of Harmonic Inc. “We are targeting year-over-year revenue growth and double digit operating profit in 2017 for our Video business. For our Cable Edge operating segment, we look forward to a planned major roll-out of our new CableOS products and services in the second half of 2017 and the resultant operating profit.”
For the first-quarter 2017, Harmonic Inc forecasts revenue to be in the range of $86.50 million to $94.50 million and its adjusted revenue to be in the range of $87 million to $95 million. the company projects net loss to be in the range of $19.10 million to $15.60 million and its adjusted net loss to be in the range of $6.50 million to $3 million. the company also forecasts operating loss to be in the range of $16 million to $12 million and its forecasts adjusted operating income to be in the range of $52 million to $53 million . the company expects diluted loss per share to be in the range of $0.24 to $0.19 and its adjusted diluted loss per share to be in the range of $0.08 to $0.04.
Operating cash flow drops significantly
Harmonic Inc has generated cash of $0.44 million from operating activities during the year, down 93.10 percent or $5.91 million, when compared with the last year. The company has spent $70.48 million cash to meet investing activities during the year as against cash outgo of $10.41 million in the last year.
The company has spent $0.15 million cash to carry out financing activities during the year as against cash inflow of $57.53 million in the last year period.
Cash and cash equivalents stood at $55.64 million as on Dec. 31, 2016, down 55.91 percent or $70.56 million from $126.19 million on Dec. 31, 2015.
Working capital drops significantly
Harmonic Inc has witnessed a decline in the working capital over the last year. It stood at $71.94 million as at Dec. 31, 2016, down 64.25 percent or $129.31 million from $201.25 million on Dec. 31, 2015. Current ratio was at 1.50 as on Dec. 31, 2016, down from 3.37 on Dec. 31, 2015.
Debt increases substantially
Harmonic Inc has witnessed an increase in total debt over the last one year. It stood at $124.45 million as on Dec. 31, 2016, up 26.61 percent or $26.15 million from $98.30 million on Dec. 31, 2015. Short-term debt stood at $7.28 million as on Dec. 31, 2016. Total debt was 22.46 percent of total assets as on Dec. 31, 2016, compared with 18.72 percent on Dec. 31, 2015. Debt to equity ratio was at 0.46 as on Dec. 31, 2016, up from 0.30 as on Dec. 31, 2015. 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
