Harmonic Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2011; Provides Earnings Guidance for the First Quarter of 2012
January 31, 2012 at 04:00 pm EST
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Harmonic Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2011. Net revenue for the fourth quarter of 2011 was $143.6 million, up 4% from $138.2 million in the fourth quarter of 2010. The company reported GAAP net income for the fourth quarter of 2011 of $4.3 million, or $0.04 per diluted share, compared to a net loss of $13.7 million, or $0.12 per diluted share, for the fourth quarter of 2010. Non-GAAP net income for the fourth quarter of 2011 was $14.0 million, or $0.12 per diluted share, up from $12.5 million, or $0.11 per diluted share, for the same period of 2010. The company reported income from operations of $6.6 million and income before income taxes of $6.3 million against loss from operations of $3.0 million and loss before income taxes of $2.8 million for the same period a year ago.
For the full year 2011, GAAP net revenue was $549.3 million, up from $423.3 million for 2010, Pro forma annual revenue, which includes revenue from Omneon and certain deferred revenue excluded in GAAP results for both years, was $551.4 million for 2011, up 8% from $509.0 million for 2010. For the full year 2011, GAAP net income was $8.8 million, or $0.08 per diluted share, compared to a net loss of $4.3 million, or $0.04 per diluted share, for 2010. For the full year 2011, non-GAAP net income was $47.5 million, or $0.41 per diluted share, up from $36.4 million, or $0.35 per diluted share, for 2010. The company reported income from operations of $11.8 million and income before income taxes of $11.6 million against income from operations of $5.1 million and income before income taxes of $5.4 million for the same period a year ago. The company reported net cash provided by operating activities of $45.2 million and acquisition of property and equipment of $17.3 million against net cash provided by operating activities of $17.6 million and acquisition of property and equipment of $35.6 million for the same period a year ago.
The company provided earnings guidance for the first quarter of 2012. The company anticipates net revenue to be in the range of $132 million to $142 million for the first quarter of 2012, which is historically the Company's slowest quarter for the year. GAAP gross margins and operating expenses for the first quarter of 2012 are expected to be in the range of 45% to 47% and $61 million to $63 million, respectively. Non-GAAP gross margins and operating expenses for the first quarter of 2012, which will exclude charges for stock-based compensation and the amortization of intangibles, are anticipated to be in the range of 50% to 52% and $55 million to $57 million, respectively, reflecting the timing of employee compensation expense and increased marketing activities this quarter. Non-GAAP tax rate for 2012 will remain at approximately 25% based on the fact that the R&D tax credit has not been extended.
Harmonic Inc. is a provider of virtualized broadband and video delivery solutions. The Company's solutions enables media companies and service providers to deliver video streaming and broadcast services to consumer devices, including televisions, personal computers, laptops, tablets and smartphones. The Company operates through two segments: Video and Broadband. Its Broadband segment provides broadband access solutions and related services, including its cOS software-based broadband access solution, to broadband operators globally. Its Video segment provides video processing and production and playout solutions and services worldwide to broadband operators and satellite and telco Pay-TV service providers, and to broadcast and media companies, including streaming media companies. Its Video business infrastructure solutions are delivered either through shipment of its products, software licenses or as software-as-a-service (SaaS) subscriptions.
Harmonic Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2011; Provides Earnings Guidance for the First Quarter of 2012