Video-equipment vendor Harmonic posted a 4% dip in total revenue for the first quarter of 2012, with a 26% decline in sales in its satellite and telco segment unable to offset relatively strong performance in its cable business.
Net revenue for the quarter ended March 30, 2012, was $127.7 million, compared with $132.8 million a year ago. Harmonic, which had previously warned investors of the revenue shortfall, cited unexpectedly light orders and a decline in European sales in the period. The company reported a net loss of $7.5 million (6 cents per share) compared with net income of $500,000 for the first quarter of 2011.
Sales in Harmonic's cable segment rose to $61.8 million, up 9.5% from $55.9 million in the first quarter of 2011, while satellite and telco fell to $25.9 million versus $35.2 million in the year-ago period. Broadcast declined 4% year over year, to $40.1 million.
Still, the company said total bookings in the first quarter of 2012 were approximately $142.5 million, up 8% from approximately $131.6 million for the first quarter of 2011.
"We got off to an unusually slow start in the first quarter and our European business remained soft throughout the quarter, but our bookings growth in other geographies underscores the fundamental strength of our business," Harmonic president and CEO Patrick Harshman said in announcing the results.
U.S. sales increased 3%, to $60.9 million, while international sales fell 9%, to $66.9 million for the first quarter of 2012.
Harmonic saw "robust demand" for its high-density HectoQAM product aimed at cable operators, and also had record professional services and support bookings. Harshman added that the company has had a positive customer response to its new playout, distribution and multiscreen-video delivery solutions.
For the second quarter of 2012, Harmonic expects net revenue of $130 million to $140 million, with gross margins and operating expenses in the range of 44% to 46% and $62 million to $63 million, respectively.
Separately Tuesday, Harmonic announced that its board of directors has approved the repurchase of up to $25 million of the company`s common stock.