Harmonic sales up, but Omneon purchase pushed back to Q3

Video delivery specialist Harmonic Inc. (NASDAQ: HLIT) reported second quarter sales were $95.5 million, up 18 percent from $81.3 million in the same quarter a year ago, with nearly half (48 percent) of net revenue coming from the international market. Overall, 56 percent of the quarter's net revenue were attributed to sales to the cable industry, 27 percent to telcos and 17 percent to satellite TV operators.

For the quarter, GAAP net income was $4.4 million, or 5 cents per diluted share, compared to a net loss of $7.9 million, or 8 cents per share, for the second quarter of 2009.

Harmonic's president and CEO, Patrick Harshman, during an investor call, said the company's deal to buy Omneon, which it agreed to pay $274 million for in May, would close in Q3; it originally had been expected to close near the end of the second quarter. Harshman said the company has received positive responses to its pending acquisition, and said Omneon continued to perform well, with first half bookings of $57.8 million, up 19 percent year-over-year and a projected 2010 standalone revenue of $120 million to $125 million.

Harshman told investors continued adoption of high-definition products was a major growth driver for Harmonic, and said converged multi-screen solutions were gaining traction in the marketplace as the company continued to expand across multiple customer segments and geographies.

He said Harmonic expected net revenues for the third quarter in a range of $95 to $98 million and for the full year 2010 in a range of $370 to $375 million.

For more:
- see this release
- see this PDF of the slide presentation

Related articles:
Harmonic, DirecTV and Panasonic offer 3D TV demo at NAB
Omneon agrees to be acquired in $274M deal with Harmonic
Harmonic powers HD, nVOD rollout in Maldives

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