Cable's shift to software spending is evident in earnings reports from
SupportSoft Inc. and Harmonic Inc.
SupportSoft -- which supplies many cable MSOs with software for
broadband-data-customer support -- posted fourth-quarter revenue of $11.8
million and net income of $948,000, compared with $8.5 million in revenue and a
$4.2 million net loss in the year-earlier period.
Revenue also was up sequentially from the third quarter's $11.1 million.
Full-year revenue reached $41.2 million, compared with $30.4 million in 2001,
while 2002's net loss of $1.5 million was down from 2001's net loss of $21.1
Comcast Corp., Cox Communications Inc. and BellSouth Corp. all use
SupportSoft software. The company projected full-year-2003 revenue in the $48
million to $53 million range.
Harmonic, meanwhile, reported fourth-quarter revenue of $39.3 million, up
from the third quarter's $37 million but far below last year's fourth-quarter
mark of $56.7 million.
Full-year revenue reached $186.6 million versus $203.8 million in 2001.
Excluding a series of special charges, the company's net loss was $11.5
million in the fourth quarter, compared with a net loss of $8.3 million in the
Chairman and CEO Anthony Ley said, "While many of our international customers
continue to confront financial restructuring and regulatory issues, the
resolution of major mergers in the United States resulted in increased domestic
shipments during the fourth quarter and a more positive outlook for 2003."
Harmonic's fiber-optics division saw sequential sales grow from $13.2 million
to $18.3 million quarter-to-quarter, but headends sales dropped sequentially
from $23.8 million to $21 million.