Harmonic Inc. shares plunged as much as 22 percent Thursday after the company
reported losses below Wall Street estimates and warned that those losses would
continue into the first half of the year.
Harmonic's stock closed at $9.13 per share, down 16 percent, or $1.75 each.
The stock had been as low as $8.44 -- a 22.4 percent decline -- in Thursday
The company reported a fourth-quarter loss of 30 cents per share Wednesday
night after market close, on the low end of revised guidance in December. Back
then, Harmonic said it would lose between 20 cents and 30 cents per share. Wall
Street had anticipated a loss of 26 cents.
Net sales in the period were $52 million, down from $63.3 million in the same
period in 1999.
Investors also were disappointed that Harmonic did not announce that it had
resumed shipments to AT&T Corp. -- one of its largest customers -- this
Harmonic stock was hammered after it announced in December that shipments to
AT&T would be delayed -- shares fell 68 percent between Nov. 3 and Dec. 29
-- but it began gaining ground in the past few weeks as investors anticipated a
resumption of orders.
'What was indicated is that there were some isolated purchases by AT&T,
but they were of a limited nature,' Josephthal & Co. Inc. analyst Lawrence