News

4Q In Tune for Harmonic

2/01/2004 7:00 PM Eastern

Shares in Harmonic rose nearly 24% ($2.07 per share) between Jan. 22 and Jan. 28, after the telecommunications equipment provider reported strong fourth-quarter results.

Revenue rose 43% in the quarter to $56.3 million and net income was $1.4 million (2 cents per share) — its first positive net earnings since March 2000.

The revenue increases were driven mainly by stronger-than-expected sales to cable operators – in a release, Harmonic said headend sales to MSOs increased sequentially to $33.2 million from $29 million, while revenue at its Broadband Access Networks division rose to $23.1 million from $18.3 million from the previous quarter. Cable made up 78% of revenue in the quarter, versus 10% from satellite and 12% from telephone companies.

In a research note, Rodman & Renshaw analyst Daniel Ernst increased his 12-month target price for the stock to $12 per share, adding that Harmonic materially exceeded his forecasts for the quarter. He also increased his 2004 revenue estimates for the company to $238 million from $230 million.

"We believe Harmonic is a significant beneficiary of the escalating digital video war between cable, satellite and broadcast networks," Ernst wrote in his report.

Want to read more stories like this?
Get our Free Newsletter Here!
September
October

VR 20/20

The Times Center, New York, NY