Lower MSO Spending Knocks Harmonic Off-Key

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Harmonic Inc. posted second-quarter revenues on the high side of its revised guidance, generating $59 million, which still surpassed the $57 million reported in the year-earlier period.

But the slowdown in some cable-operator spending, which led to the downward guidance several weeks ago, was evident, given Harmonic’s revenue of $72.9 million in the first quarter.

The company’s CS digital-headend division posted revenue of $43 million, down sequentially from $56 million but up over the year-earlier period’s $33.3 million. Harmonic said the decline was primarily a result of slower orders of digital-headend systems from U.S. cable operators in May and June.

The GAAP (generally accepted accounting principles) net loss for the quarter was $2.5 million compared with a net loss of $1.8 million in the year-earlier period.