Shares of Harmonic Inc. plunged nearly 19% ($1.83 per share) to $7.81 each Tuesday after the cable equipment vendor offered weak second-half sales guidance.
Harmonic released second-quarter results after market close on Monday, reporting revenue of $89.3 million, up 25% from $71.3 million last year, and net income that more than quadrupled to $25.5 million (27 cents per share) in the period, from $6.2 million (8 cents per share) in the previous year. Sales for the first half of the year were equally as strong, ahead 25% to $176.6 million, reflecting increased shipments to cable, satellite and telco customers, the company said in a statement.
But it was Harmonic’s forecast for the balance of 2008 that sent the shares into a tailspin. Harmonic estimated that second-half sales would be between $175 million and $185 million, putting its full-year revenue estimates at between $351.6 million and $361.6 million, slightly below analysts’ consensus of $362.5 million.