Harmonic Inc Q2 2009 Earnings Preview
Harmonic (HLIT)
Report Q2 AMC 30 July. Consensus $.03 on $75.08M.
| EPS Trends | Current Qtr Jun-09 |
Next Qtr Sep-09 |
Current Year Dec-09 |
Next Year Dec-10 |
| Current Estimate | 0.03 | 0.06 | 0.19 | 0.32 |
| 7 Days Ago | 0.03 | 0.06 | 0.19 | 0.32 |
| 30 Days Ago | 0.02 | 0.05 | 0.19 | 0.34 |
| 60 Days Ago | 0.02 | 0.06 | 0.19 | 0.34 |
| 90 Days Ago | 0.07 | 0.09 | 0.31 | 0.43 |
Q1 2009 Conference Call
Revenues dropped off due to cautious capital spending by customers. HLIT retain their video technology leadership and received first orders for the new Electra 8000 encoder platform. “In April we’ve seen a more robust pace of orders giving us optimism that we hit the bottom during Q1.
By product category video processing products represented 45% of revenue for the first quarter, adjunct access 35% and software services and other 20%. Even with lower than anticipated revenue we were able to maintain our recent levels of gross margins in part because of a favorable product mix but also from the longer term trends driven by our product strategy to develop more software intensive products.
The restructuring and integration of Scopus is proceeding very much as planned or even slightly ahead of it and we are on track to realize our projected cost synergies of $8 million to $10 million on an annualized basis…”
Harmonic remains a story stock. S&P fair value is $7.20, stock closed at $5.98. The Fusion Fund will continue to hold Harmonic, even though I have not yet seen any sign of recovery in capital spending from their major customers. I continue to like the Harmonic story and their leadership position.
Related posts:
Leave your response!